Japanese automaker Nissan has announced a recovery plan to create a more resilient business, “, which quickly adapts to the ” market changes after the company reported a net loss of 671 billion yen (EUR 4 billion) for the fiscal year ending in March. This compares to the net profit of €2.6 billion in the previous fiscal year.
The main cause of the damage was the decline in vehicle sales in China and other countries and increased restructuring costs.
Nissan Motor Corp. has said it will reduce the number of car factories from 17’ to 10’ under the rescue plan. It was not specified which factories were closed, but it was confirmed that the closures would include factories in ’, Japan.
Ivan Espinosa, the company's chief executive, told reporters in “ that there is a mountain we need to climb, stressing that the task will not be easy, it requires discipline and teamwork. “From today, we are building the future of Nissan’.”
Among the layoffs to be made until March 2028’ is the 9,000-person reduction announced last year. Nissan has also previously announced that it has abandoned plans to build a battery factory in ’, Japan.
Nissan’'s recovery plan involves trying to reduce costs by up to 500 billion yen ($3.4 billion) compared to current costs.
Espinosa, who took over earlier this year, said the latest plans come after a careful review of operations to align production with demand, including determining market and product strategies. Nissan’ will also benefit from partnerships with Renault SA in ’ and Dongfeng Nissan in China.
Yokohama-based automaker, US President Donald Trump, said ’'s tariffs on car imports were also damaging the results.
Espinosa, “As the new management, we take a prudent approach to reassess our goals and actively seek every possible opportunity to implement and ensure a strong recovery.
“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, ” said.
But Jeremie Papin, Nissan's chief financial officer, acknowledged that the automaker faces serious challenges. Nissan did not forecast profits for the fiscal year up to March 2026’, citing uncertainties.
