Paris (AFP) – Struggling Japanese carmaker Nissan said it expected to suffer an operating loss of 275 billion yen ($1.8 billion) in its fiscal year that ends in March as it faces further economic headwinds. It also stated 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 launched an effort to cut 20,000 jobs, some 15 percent of its workforce. The first-half operating loss of 30 billion yen is better than the automaker had been forecasting. Nissan attributed this to one-time benefits, including lower costs associated with emission regulations. The company noted that it had also 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 reflected “anticipated challenges due to supply chain risks, foreign exchange volatility, tariffs, and other external factors,” the automaker said in a statement. It added that it now expected sales of 11.7 trillion yen in 2025-2026, down from its initial estimate in May of 12.5 trillion yen.
Nissan 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 the latter proposed making Nissan a subsidiary. Of Japan’s major automakers, Nissan was considered by analysts to be the most severely hit by US President Donald Trump’s tariffs on imported vehicles.
© 2024 AFP
