Paris (AFP) – Struggling Japanese carmaker Nissan said it expected to suffer an operating loss of 275 billion yen (approximately $1.8 billion) in its fiscal year that ends in March as it faces further economic headwinds. It also stated that it expected an operating loss of 30 billion yen for the first six months of the fiscal year, which runs through September.
Nissan reported a net loss of 671 billion yen for the financial year to March 2025 and has launched an effort to cut 20,000 jobs, which is about 15 percent of its workforce. The first-half operating loss of 30 billion yen is better than the automaker had been forecasting, attributed to one-time benefits, including lower costs related to emission regulations. In addition, it mentioned that it had deferred some project costs to the second half of the year.
“While our first-half results reflect temporary benefits and payback from cost-saving initiatives, we anticipate an ongoing challenging competitive environment in the second half, supply chain risks, and the seasonality of business,” said Chief Financial Officer Jeremie Papin. The expected worsening of its performance in the second half of its fiscal year reflects “anticipated challenges in the second half due to supply chain risks, foreign exchange volatility, tariffs, and other external factors,” the automaker said in a statement.
Nissan also adjusted its sales forecast, now expecting sales of 11.7 trillion yen in 2025-2026, down from its initial estimate in May of 12.5 trillion yen. The company has faced numerous speed bumps in recent years, including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box. A merger with Japanese rival Honda had been seen as a potential lifeline, but talks collapsed in February when Honda proposed making Nissan a subsidiary.
Of Japan’s major automakers, Nissan was viewed by analysts as likely to be the most severely impacted by US President Donald Trump’s tariffs on imported vehicles.
© 2024 AFP
