Nissan Motor Corporation has forecast a full-year net loss of 650 billion yen ($4.2 billion) for the fiscal year ending March 2025, a figure double the loss predicted by analysts. The updated projection highlights the severe impact of sluggish global sales and trade tensions on the Japanese automaker.
While the net loss widened significantly, Nissan sharply reduced its expected annual operating loss to 60 billion yen, down from a prior forecast of 275 billion yen. The company attributed the improved operating outlook to accelerated restructuring measures, including cost-cutting and operational efficiencies.
The results come amid intense pressure from U.S. tariffs. Japanese automobiles faced a punitive 27.5% tariff rate before a July trade agreement lowered the rate to 15%, a change that only took effect in mid-September. Analysts had identified Nissan as particularly vulnerable to U.S. President Donald Trump’s tariff policies due to its significant manufacturing and export footprint.
In response, Nissan has announced a major overhaul. It plans to reduce global production plants from 17 to 10 by March 2028 and cut 20,000 jobs worldwide. The company stated that its “workforce resizing initiatives are advancing responsibly” through outsourcing and expense management.
Third-quarter results reflected the challenging environment. Revenue fell 5% year-on-year to 2.999 trillion yen, and the company posted a net loss of 28.3 billion yen for the period, though less severe than feared. Sales in the key U.S. market dropped another 3.7% year-on-year, while sales in China rose 12.7%, aided by new electric vehicle models.
Nissan’s struggles follow years of instability, including the 2018 arrest of former chairman Carlos Ghosn and the collapse of merger talks with Honda last year after Honda proposed making Nissan a subsidiary. The automaker now projects a 5.8% decline in annual revenue to 11.9 trillion yen.
The forecast underscores the profound challenges facing legacy automakers navigating trade wars, shifting consumer preferences toward electric vehicles, and intensifying global competition. Nissan’s restructuring plan will be closely watched as a critical test of its ability to restore profitability.
(The article is approximately 320 words.)
