Nissan raises outlook as demand cuts discounting

Nissan on Tuesday (November 9) raised its full-year outlook by a fifth.

The Japanese automaker now expects an operating profit of up to 180 billion yen - or almost $1.6 billion.

Nissan says it's getting a boost from new models, such as its revamped Qashqai crossover.

In a way, the global chip shortage has also helped.

Though Nissan has had to cut production, demand has stayed strong, meaning it's been able to reduce discounting.

Nissan Chief Operating Officer Ashwani Gupta spoke at a news conference in Yokohama:

"The semiconductor shortage continues to be a challenge for the automotive industry. We anticipate that our sales performance efforts, including our quality of sales initiatives and sales finance business, will more than offset the reduction in the sales volume resulting from these challenges."

Nissan is also benefiting from moves to boost efficiency.

It's slashed the number of models it makes as part of that.

Now the firm reckons it can break even on production of 3.7 million vehicles a year - down from 4.4 million before.

Despite cutting output due to the chip shortage, this year's production should still exceed that key threshold.

Nissan's outlook is more bullish than some local rivals.

Last week Honda cut its operating profit target by 15%, citing the lack of semiconductors.

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