📰 Yokohama, Japan (June 25, 2025) - Nissan Motor Co. revealed a stark financial forecast yesterday (June 24th), projecting a significant operating loss for the April-June quarter (Q2 FY2025).
💸 Steep Loss Forecast: The company anticipates a consolidated operating loss of approximately ¥200 billion (approx. $1.56 billion USD / ¥99 billion RMB) for Q2 2025. This represents a dramatic reversal from the ¥900 million operating profit recorded in the same quarter last year.
🌍 Primary Challenges: Nissan attributed the severe downturn to intense sales struggles in its three key markets: China, the United States, and Japan. Additionally, the impact of high US tariff policies under the Trump administration was cited as a major contributing factor.
📉 Full Year Loss Deepens: This projected loss compounds Nissan's already difficult FY2024 (April 2024 - March 2025), which ended with a staggering consolidated net loss of ¥670.8 billion. This contrasts sharply with the ¥426.6 billion net profit achieved in FY2023. The FY2024 loss stemmed from sales slumps forcing asset impairment charges on factories and rising restructuring costs. Notably, consolidated operating profit for FY2024, while down 87.7% year-on-year, remained positive at ¥69.7 billion.
🛠️ Major Restructuring Underway: Confronting these challenges, Nissan announced sweeping rationalization measures in May 2025. The core of this plan involves:
→ 🔨 Cutting 20,000 jobs globally
→ 🏭 Closing 7 manufacturing plants
Reports indicate plants under consideration include the Oppama Plant (Yokosuka, Kanagawa) and the Nissan Shatai Shonan Plant (Hiratsuka, Kanagawa).
🎯 Recovery Target: During Nissan's Annual General Meeting held in Yokohama, President Ivan Espinosa outlined the company's goal to return the automotive business to profitability by Fiscal Year 2026 (April 2026 - March 2027). However, he acknowledged that navigating the current difficult environment will continue.
👥 Leadership Shift: Shareholders approved the appointment of President Espinosa and 11 others as directors. Notable departures include former President Makoto Uchida and Jean-Dominique Senard, Chairman of alliance partner Renault. All eight external directors, whose oversight responsibilities had been questioned, were re-elected.
