Nissan Anticipates Record Net Loss Amid Restructuring

Tokyo – Nissan Motor anticipates a substantial net loss, projected to range from 700 billion to 750 billion yen ($4.91 billion to $5.26 billion), for the fiscal year concluding in March. The company attributed this to impairment charges incurred during its ongoing restructuring efforts, as announced on Thursday.

This revised forecast contrasts sharply with the previously anticipated loss of 80 billion yen. The expected loss would represent the largest in the automaker’s history. New CEO Ivan Espinosa is spearheading efforts to revitalize Japan’s third-largest automaker through workforce reductions, capacity adjustments, and plant closures.

Nissan has recorded impairment losses exceeding 500 billion yen across its operations in North America, Latin America, Europe, and Japan, following a comprehensive review of production assets. Additional restructuring costs are expected to surpass 60 billion yen.

“We are adopting a cautious stance by revising our full-year outlook to reflect a thorough assessment of our performance and the book value of our production assets,” stated Espinosa, who assumed his leadership role this month.

Nissan reportedly intends to decrease its Japanese output of a top-selling US model due to tariff implications.

Talks between Nissan and Honda regarding a potential merger, aimed at creating a $60 billion automotive entity, concluded in February. The deal dissolved due to Honda’s proposition for Nissan to become a subsidiary, according to sources.

Nissan projects a full-year operating profit of 85 billion yen, approximately 30% lower than its earlier projection.

The automaker also announced it will forgo dividend payments for the full fiscal year. Earnings are scheduled to be reported on May 13.