At a news conference, Nissan Motor Co. CEO Carlos Ghosn said that its global production will go back to normal this October. The Japan earthquake on March 11 had led to factory stoppages and disrupted the distribution of supplies.
Ghosn said Nissan isn’t revising its strategy of making 1 million vehicles annually in Japan. As a result of the earthquake, Nissan had a production loss of 55,000 units in Japan last March.
The earthquake had damaged Nissan’s Iwaki engine factory in Fukushima prefecture and it was closed until April 17. Except for its Kyushu plant in southern Japan, all of Nissan's car-building factories had been closed until March 23.
Nissan said that for the month of April, its production volume in Japan is only 40% of the levels last year. For this month, its output has just been at 50%.
Starting in April, its production has had periodical stops at plants in Mexico, the U.S. and the U.K. Its factories in China have suspended weekend and overtime shifts.
Nissan, which is the second- largest automaker in Japan, posted a fourth-quarter profit that exceeded expectations after the earthquake affected domestic sales and shut down factories.
For the quarter that ended March 31, its net income was 30.8 billion yen ($380 million), compared with a loss of 11.6 billion yen a year ago. This surpassed the 23 billion yen average of five analyst estimates compiled by Bloomberg.