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Nissan Projects Record $5.3 Billion Loss for FY2024-25

The automaker cites asset impairments, restructuring costs, and U.S. tariffs as key drivers of its financial struggles, alongside a downgraded credit rating and plummeting share value.

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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)
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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 has revised its financial forecast, projecting a net loss of 700–750 billion yen ($4.9–5.3 billion) for the fiscal year ending March 2025.
  • The loss is attributed to major asset impairments, restructuring expenses, and a newly imposed 25% U.S. import tariff on vehicles.
  • Moody's has downgraded Nissan's credit rating to junk, citing weak profitability and declining demand for its aging vehicle lineup.
  • The company's shares have dropped over 40% in the past year, reflecting investor concerns over its financial and operational challenges.
  • Despite setbacks, Nissan emphasizes its robust product pipeline and financial resources as it seeks to stabilize and pursue a turnaround.