Nissan, billions of losses, staff reduction and uncertainty about the future

The automotive manufacturer, who has huge debts and failed this year to join the Honda company, is significantly reducing production as part of an expensive business recovery plan.

“Nissan must give priority to improving himself with more urgency and speed,” Executive Director Ivan Espinosa told reporters.

The reality is clear. We have a very high cost structure. To further exacerbate the global market environment is unstable and unpredictable, making planning and investment increasingly challenging, he added.

Nissan reported a net loss of 671 billion euros ($4.5 billion) for financial year by March 2025.

The company's worst annual loss was 684 billion in 1999-2000, during a crisis leading to partnership with French carmaker Renault.

Renault, which owns nearly 36 per cent of Nissan's shares, said on Tuesday that it expects a loss of 2.2 billion euros in the first quarter due to the Japanese company's recovery plan.

Nissan gave no net profit projections for 2025-2026.
The uncertain nature of American tariffs makes it impossible for us to give a rational forecast for operational gain and net profit for the entire year, so we have left these figures undefined,”, Espinosa said.

In this situation, the company confirmed that it plans to cut a total of 20,000 jobs worldwide.

We wouldn't do that if we didn't have to survive,” highlighted Espinosa, talking about layoffs.

A union with Japanese rival Honda was seen as a rescue opportunity, but the talks ceased in February when Honda proposed making Nissan a subsidiary.

Economy officials warn more difficult days for Nissan, as it is expected to be more seriously affected by US President Donald Trump's 25 percent fee for imported vehicles.