Nissan profits slump on high yen

Nissan has reported a 41% fall in half-year profits after it was hit by the high value of the yen and the “severe decline” in the US car market.

Japan’s third-largest carmaker made a net profit of 126bn yen ($1.3bn; £803m) between April and September, down from 212bn yen a year earlier.

Despite seeing overall sales rise 4.7%, Nissan said those in the US fell 3.4%.

Its results came as fellow Japanese car firm Suzuki said it expects profits to fall 25% in the year to 30 March.

Blaming weaker sales in India and Europe, Suzuki said its annual net profits would probably fall to 60bn yen from its previous estimate of 80bn yen.

Looking ahead, Nissan warned that its profits for the financial year to the end of March may fall by more than two thirds.

It expects a net annual profit of 160bn yen, down from 484bn yen a year earlier, and well short of its previous 340bn yen forecast.

“The global financial and economic crisis has had a profound effect on every area of our industry, with the grip on credit and declining consumer confidence being the most damaging factors,” said Nissan chief executive Carlos Ghosn.

He added that the firm was now taking “all necessary and responsible measures to protect the company and preserve our ability to rebound when conditions improve”.

At the start of this week, Nissan said it would halt production of two models at its Sunderland plant in the North-East of England due to falling demand caused by the economic downturn.

It said no jobs were affected.

Source: BBC

EU carmakers closer to CO2 loans

Carmakers have requested 40bn euros ($50.98bn; £31bn) to help develop cars which meet EU CO2 emissions targets.

EU Industry Commissioner Guenter Verheugen said such loans made through the European Investment Bank (EIB) should now be accepted “in principle”.

He had met executives from top firms such as Daimler and Peugeot Citroen.

The ACEA European carmakers’ association had requested the loans to help them remain competitive in the face of plans to provide huge loans to their US rivals.

“The credit crunch makes it very difficult for the sector to finance operations and to sustain investment levels,” said PSA Peugeot Citroen chief Christian Streiff, who is also head of ACEA.

“Consumers are increasingly hesitant to purchase cars. New car sales are below normal levels, in fact the lowest level in a decade,” he added.

Source: BBC

Number of uninsured drivers increases

The number of uninsured cars and drivers in London has seen a big jump, according to police figures.

Officers seized 14,133 cars between April and September under Operation Reclaim, which was launched in Hounslow in west London earlier this year.

In comparison, 14,520 uninsured cars were seized in the whole of 2007.

The crackdown follows an amendment of the Road Traffic Act which gave officers powers to seize and deal with uninsured vehicles and drivers.

Earlier police officers could only report such vehicles and drivers to traffic officers.

‘Serious crime’

Sgt Stuart Buchan said: “In 2005, amendments were made under Socpa legislation to the Road Traffic Act, which gave officers in uniform powers to seize uninsured vehicles and those being driven other than in accordance with a licence.

“We launched a pilot programme in Hounslow which saw a 30% fall in crime, so we began rolling the operation out across the capital.”

“There is a clear correlation between uninsured vehicles and serious crime, and around 70% of the cars we seize are associated with our known targets,” he added.

The operation has been in force in 15 boroughs and will be rolled out to the rest of the city by April 2009.

Source: BBC