Nissan Motor Co. may have reported a quarterly profit but it says that it will continue to be cautious. Nissan, which is Japan's third-largest automaker, lifted its outlook for the second time.
Sales plunged during the worst downturn in decades but now that there are signs of recovery, Nissan still warns of a shaky outlook for the global car market. Nissan, as well as Toyota Motor Corp. and Honda Motor Co., has raised annual forecasts.
This emphasizes the impact of government stimulus programs and the improvement in the global economy. At a news conference, Nissan's chief operating officer Toshiyuki Shiga said that the company will "take careful steps," adding that it's still too early to say that everything has recovered.
He clarified that the rise in demand leading to the increase in Nissan's October-December sales in "almost all markets" may not be self-sustained since he thinks it was due largely to car scrap incentives and other economic stimulus measures.
Shiga said further that removing a lid on spending to develop cars and rises in materials costs that reversed earlier falls, may hinder Nissan from keeping up the pace of its earnings recovery in the fourth quarter and the new business year starting in April.
He attributes the solid third-quarter results to a rise in sales volume and cost cuts but in the fourth quarter, the company doesn't expect the same results. Shiga asserted that the company will "raise back spending to seed growth for the future." [via autonews - sub. required]