Japan carmaker Nissan announced a recovery plan to create a “more resilient business that adapts quickly to market changes”, after the company reported a net loss of ¥671 billion (€4bn) for the fiscal year that just ended in March. This compares to the previous fiscal year’s net profit, which amounted to €2.6bn.
The loss was mainly driven by slipping vehicle sales in China and other nations, and towering restructuring costs.
Nissan Motor Corp. said it will reduce the number of its auto plants to 10 from 17, under the recovery plan. It did not say which plants were being closed but confirmed the closures will include factories in Japan.
“We have a mountain to climb,” its Chief Executive Ivan Espinosa told reporters, stressing the task will not be easy, requiring discipline and team work. “Starting today, we build the future for Nissan.”
The job cuts to be done by March 2028 include the 9,000 head count reduction announced last year. Nissan also previously announced the scrapping of plans to build a battery plant in Japan.
Nissan’s recovery plan includes trying to reduce costs by 500 billion yen ($3.4 billion) compared to current costs.
Espinosa, who took the helm earlier this year, said the latest plans followed a careful review of operations to align production with demand, including coming up with market and product strategies. Nissan will also leverage its partnerships, such as the one with Renault SA of France in Europe and Dongfeng Nissan in China, he said.
The Yokohama-based automaker said US President Donald Trump’s tariffs on auto imports also hurt 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,” he said.
But Nissan Chief Financial Officer Jeremie Papin acknowledged the automaker faces serious challenges. Nissan did not give a profit projection for the fiscal year through March 2026, citing uncertainties.