Nissan reports massive loss but aims for profitability later in 2025

In Japan, Nissan Motor Corp. reported a significant financial setback, posting a loss of 115.8 billion yen, equivalent to $782 million, during the April to June quarter. This marks a stark contrast to the previous year's profit of 28.6 billion yen for the same period. The company highlighted a nearly 10% drop in quarterly sales, amounting to 2.7 trillion yen, attributed to various challenges such as declining demand, unfavorable exchange rates, and tariffs imposed by President Donald Trump. The results were described as better than expected despite the red ink. Newly appointed CEO Ivan Espinosa, who took over the leadership role from Makoto Uchida in April, stated that the recovery plan for the company was crucial and urgent. Uchida resigned to take accountability for the financial losses. Espinosa indicated that the initial actions in their revival strategy, which include cost-cutting measures and realigning product strategies, are showing results. He emphasized that the team at Nissan is focused on a rapid return to profitability and is committed to ensuring a sustainable future. In a further push for recovery, Nissan is shifting its production operations by closing its flagship factory in Oppama, Japan, by the end of the 2027 fiscal year and relocating its production to a facility in southwestern Japan. This move is part of a broader strategy to streamline operations amid ongoing headwinds in the market. Additionally, the automaker announced plans to reduce its global workforce by 15%, which translates to approximately 20,000 employees; this includes a previous reduction of 9,000 workers revealed last year. Despite these challenges, Nissan has reported some success with specific models, such as the N7 in China and the Magnite in Mexico, which have been performing well recently. The company previously considered a joint venture with Japanese rival Honda Motor Co. but decided against it, opting instead to maintain collaboration on technology development. The outlook remains cautious, with the auto industry facing significant changes and pressures, making the company's recovery plan vital for its future viability.