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Nissan, a Japanese car manufacturer, has unveiled a recovery plan aimed at building a more resilient business capable of quickly adapting to market fluctuations. The company reported a net loss of ¥671 billion (€4 billion) for the fiscal year ending in March, in stark contrast to the previous year’s net profit of €2.6 billion. The loss can be attributed to declining vehicle sales in China and other countries, as well as substantial restructuring costs.
The loss was primarily driven by declining vehicle sales in China and other countries, and significant restructuring costs.
As part of its recovery plan, Nissan Motor Corp. will reduce the number of its auto plants from 17 to 10. While the specific plants to be closed were not mentioned, it was confirmed that factories in Japan will be included in the closures.
“We have a mountain to climb,” said Nissan’s CEO, Ivan Espinosa, emphasizing the difficulty of the task and the need for discipline and teamwork. “Starting today, we will build the future for Nissan.”
The job cuts, which include the previously announced reduction of 9,000 employees by March 2028, will be implemented under the plan. Nissan had previously announced the cancellation of its plans to build a battery plant in Japan.
As part of its recovery plan, Nissan aims to reduce costs by 500 billion yen ($3.4 billion). CEO Espinosa stated that these plans followed a thorough review of operations to align production with demand, including market and product strategies. Nissan also intends to leverage its partnerships with companies such as Renault SA in Europe and Dongfeng Nissan in China.
The automaker acknowledged that U.S. President Donald Trump’s tariffs on auto imports had a negative impact on its results.
“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” Espinosa said.
“All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,” the CEO added.
However, Nissan’s Chief Financial Officer, Jeremie Papin, acknowledged that the automaker facing significant challenges. Due to uncertainties, Nissan did not provide a profit projection for the fiscal year ending in March 2026.
