Nissan is not yet out of the woods, but has put itself on a better path after announcing significant financial losses in recent years.
Throughout the 2024 Japanese financial year (April 2024 to March 2025), Nissan posted a net loss of ¥670.9 billion (A$6.2 billion), a staggering loss of ¥1.097 trillion (A$10.1billion) compared to the financial year prior.
This sparked a raft of changes, including the installation of a new CEO in Ivan Espinosa, as well as drastic cost-cutting measures to make itself a viable business once again.
In its third-quarter financial update (October to December 2025), Nissan announced it expects a full-year operating loss of ¥60 billion (A$553.3 million) for 2025, rather than the originally forecasted figure of ¥275 billion (A$2.5 billion).
However, to get to this point it has had to make a number of sacrifices, which included selling its global headquarters, located in Yokohama, to a Taiwanese company backed by a car parts firm, in a deal reportedly worth ¥97 billion ($894.5 million).
As reported by Automotive News, Nissan is also edging further closer to leaving seven of its global car factories, which includes two plants in Japan.
Both the Oppama and Shatai Shonan plants are planned to be closed, with the former being Nissan’s oldest production facility worldwide.
In Mexico, Nissan will exit its Cooperation Manufacturing Plant Aguascalientes (COMPAS) and Civac factories, in addition to another plant in Argentina.
Nissan has already sold its 51 per cent stake in a joint venture factory with Renault in India back to its French Alliance partner, meanwhile the South African plant which produces the Navara ute for certain regions is being linked to a sale to Chinese brand Chery.
When these closures are complete by the end of March 2028, Nissan will have cut excess production capacity of 2.5 to three million vehicles, making the business far more efficient in the process.
In announcing its most recent financial results, Nissan said it’s on track to meet its 2026 financial year targets.
“Through the collective efforts of employees company‑wide, we are delivering steady progress under Re:Nissan,” Espinosa said.
“We have announced all seven sites for consolidation within ten months, reflecting disciplined execution and significant advancement on fixed‑cost improvements. Although sales remain under pressure and tariff impact continues, we are maintaining operational focus and recognizing the ongoing momentum of our product lineup.
“While FY25 will reflect a substantial net loss driven primarily by non-cash accounting charges, these actions are necessary to strengthen our long-term operating performance. We will continue reinforcing our financial foundation and increasing revenue through the introduction of competitive new models, supporting our trajectory toward the goals of Re:Nissan.”
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