Making Daily Headlines · Page 4
Nissan Revises Its Forecast, Competition Declines to Revise Itself
· New York time
Nissan cut its annual sales forecast for the second time in months as competition intensified in China, the world's largest auto market. Its chief executive discussed how the automaker plans to respond to Chinese competitors, making the revised outlook a measure of pressure on a global business. The forecast is management's updated assessment of expected sales. It is not a report that every part of Nissan's operation will experience the same change. It does show that the company has had to adjust expectations again within a short period as rivals compete for customers in a major market. For an automaker selling across borders, the strength of competition in China is more than a local matter. Large markets influence business planning and the broader contest among manufacturers. Companies cannot rely on their previous assumptions simply because those assumptions looked polished in a presentation. The second cut also demonstrates the limited shelf life of a corporate forecast when conditions change. Executives can revise the figures quickly. Adapting products and strategy to a market with competing choices is the more demanding part. The auto industry enjoys an image of confident navigation. Nissan's latest revision suggests the map now needs a larger eraser. Its competitors, meanwhile, have not agreed to pull over while the company updates the route.
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