As the U.S. auto industry braces for the biggest slump since the 2008 financial crisis because of the coronavirus crisis, analysts are counting the cost for Japan’s automakers — whose fortunes depend largely on the US, which is the world’s second-largest car market.
To reflect declining U.S. demand, Goldman Sachs cut its combined operating profit estimate for seven Japanese automakers by 22% in a note to consumers last week. Nissan Motor is projected to fare the worst under Goldman’s revision, with fiscal year 2021 operating profit forecast slashed by 92%.
Automakers in the US and across the world have shut their plants due to the coronavirus pandemic.
Coronavirus has so far infected over 872,893 people and killed 43,271 worldwide. About 188,592 people in the US have been confirmed as being infected with the coronavirus. The virus has killed 4,056 people in the country.
