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Nissan Projects Record $5.3 Billion Loss as Restructuring Intensifies

The automaker cites asset impairments, restructuring costs, and U.S. tariffs for its largest-ever annual loss under new CEO Ivan Espinosa.

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The Nissan logo is displayed, at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS/Chalinee Thirasupa/File Photo
Ivan Espinosa, who will become the chief executive at Japanese automaker Nissan in April, speaks to reporters at the Nissan Technical Center in Atsugi, Japan, Wednesday, March 25, 2025. (AP Photo/Yuri Kageyama)
The road ahead looks treacherous for Nissan after the Japanese auto giant predicted an enormous loss just as US President Donald Trump's tariffs on car imports hit the industry

Overview

  • Nissan forecasts a net loss of 700–750 billion yen ($4.9–5.3 billion) for fiscal year 2024-25, marking its largest annual loss to date.
  • The loss stems from over 500 billion yen in asset impairments and more than 60 billion yen in restructuring costs across global operations.
  • U.S. import tariffs on vehicles, which disproportionately impact Nissan due to its reliance on imported models, are expected to exacerbate financial challenges.
  • Moody's and Fitch have downgraded Nissan's credit rating to junk, citing weak profitability, an aging product lineup, and declining sales in key markets like China and the U.S.
  • CEO Ivan Espinosa, who assumed leadership in April, is focusing on job cuts, plant closures, and a revamped product strategy, including accelerated EV and hybrid launches, to stabilize the company.