Japanese automaker Nissan announced on Thursday that it expects a net loss of 650 billion yen ($4.2 billion) for its fiscal year ending in March, as it continues to struggle with weak sales. The projected loss is twice as large as analysts had anticipated.
Despite the grim net outlook, Nissan sharply revised its annual operating loss down to 60 billion yen, citing accelerated restructuring measures—significantly lower than the 275 billion yen operating loss forecast in October. The company still anticipates a 5.8 percent drop in revenue for the year, to 11.9 trillion yen.
Nissan has faced mounting challenges, including heightened US tariffs on Japanese cars, which were initially threatened at 25 percent and briefly taxed at 27.5 percent before being reduced to 15 percent in mid-September. The automaker also endured reputational setbacks following the 2018 arrest of former CEO Carlos Ghosn, who later fled Japan. A proposed merger with Honda collapsed last year after Nissan suggested becoming a subsidiary.
Looking ahead, Nissan plans to reduce its vehicle production plants from 17 to 10 by March 2028, alongside a global workforce reduction of 20,000 jobs. The company said its “workforce resizing initiatives are advancing responsibly,” while also achieving “steady progress through outsourcing, efficient use of marketing funds, leveraging shared services and expense management.”
In the third quarter (October–December), Nissan reported revenue of 2.999 trillion yen, a five percent year-on-year decline, and a net loss of 28.3 billion yen, slightly better than expected. US sales fell 3.7 percent, while China saw a 12.7 percent rise, boosted by new electric vehicle models.
