Nissan reports 1st loss in a decade

Mamoru Katou, auto analyst with Tokai Tokyo Research, said Nissan was controlling losses merely by cutting costs and compared to other automakers had fallen behind on hybrids and other models that can build toward future growth.

“It needs to have more hybrids fast,” he said. “Consumer tastes have definitely shifted toward ecological vehicles.”

Nissan already sells hybrids in the U.S., but buys its hybrid system from Toyota. Nissan has focused more on electric vehicles, although it plans to introduce models packed with its own hybrid system next year.

Demand for such green cars are expected to pick up as governments, including the U.S. and Japan, introduce incentives for consumers switching from gas-guzzlers to green cars.

Also Tuesday, Nissan said it will start making electric vehicles at its Oppama Plant in Yokosuka, just south of Tokyo, from the fall 2010, with production capacity of 50,000 vehicles a year. Nissan plans to boost production toward what it calls “mass-marketing” levels in 2012.

Nissan is not the only Japanese automaker battered by the global slowdown.

Also Tuesday, Mazda Motor Corp. Japan’s fifth biggest automaker, reported a 71.5 billion yen loss for the fiscal year.

Toyota Motor Corp., the world’s largest automaker, has fared worse, racking up a 436.9 billion yen annual loss, partly because of its size and its past success that had fueled an ambitious expansion drive. It projects an even bigger loss for this fiscal year.

Honda Motor Co., by contrast, has done better, managing to stay in the black for the fiscal year with a 137 billion yen profit.

Nissan’s annual sales plunged 22 percent to 8.437 trillion yen. That was also better than its initial sales forecast.

Worldwide, Nissan sold 3.4 million vehicles, down 9.5 percent from the previous year, as sales dropped in the U.S., Japan and Europe.

But sales grew in China, according to Nissan, which makes the March subcompact and Infiniti luxury models.

Nissan said it expects to sell even fewer vehicles — 3.08 million — in the current fiscal year.

Ghosn said the priorities for the year ahead would be to preserve cash, reduce losses and take advantage of the alliance with Renault.

He said Nissan remains focused on its own turnaround and was not entering any projects or partnerships with General Motors Corp.

Ford’s foresight puts carmaker in pole position

The deal that Nissan has with Chrysler LLC to produce vehicles for each other will be reviewed because Chrysler may emerge from bankruptcy a “different” entity, Ghosn said. Fiat is acquiring a 20 percent stake in Chrysler.

Ghosn expressed hopes that demand would pick up and the yen’s strength would abate.

The global auto industry is undergoing drastic change, and the key to determining the winners is profitability, not just excellent technology and qualified engineers, he said.

The Miami Springs police force has ordered two hybrid vehicles to use in their fleet, but the brand isnt clear at this point. The excellent mileage around town should make up for the premium price that is paid, especially if (when?) gas prices rise again.