Toyota Cuts Production, Nissan Says Profit Will Be Wiped Out on U.S. Slump [View All]

[Purveyor]

Nov. 19 (Bloomberg) -- Toyota Motor Corp. will further trim North American production and Nissan Motor Co. said second-half profit will fall to ``zero'' as a recession pushes U.S. vehicle sales to the lowest annual tally in 15 years.

Toyota, heading for its first drop in U.S. sales in 13 years, will extend the Christmas-New Year closure at its U.S. and Canadian plants by two days and make other cuts, spokesman Mike Goss said in an interview yesterday. Nissan Chief Executive Officer Carlos Ghosn made the profit forecast in a Wall Street Journal interview, confirmed by company spokesman Simon Sproule.

Nissan and Toyota have cut their annual profit forecasts by more than 50 percent because of the yearlong industrywide slump in the U.S., the world's largest auto market, and waning demand in Japan and Europe. The value of overseas sales is also being eroded by the yen's 16 percent gain against the dollar and 34 percent rise against the euro this year.

For Nissan, ``there's a possibility of a loss in the second half, depending on what happens with the currency and sales,'' said Koji Endo, a Tokyo-based analyst at Credit Suisse Securities (Japan) Ltd., who rates the company ``underperform.''

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``Depression Level''

U.S. sales are at ``depression level,'' according to David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan, forcing carmakers to offer incentives to lure buyers back into showrooms.

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