Nissan Forecasts 650-B.-Yen Group Net Loss for FY 2025

Yokohama, Feb. 12 (Jiji Press)–Japan’s Nissan Motor Co. said Thursday it expects to post a group net loss of 650 billion yen for fiscal 2025 ending next month, marking its second straight year in the red. As the reasons for the dismal forecast, the automaker cited huge costs related to restructuring measures, such as plant shutdowns, sweeping U.S. tariffs under the administration of President Donald Trump, which are projected to pressure its operating balance by 275 billion yen, and sluggish sales in Japan and Europe. Nissan posted a group net loss of 670.8 billion yen in fiscal 2024. It lowered its global vehicle sales forecast for fiscal 2025 by 50,000 units to 3.2 million units. The company had not previously published a full-year bottom line outlook. “Nissan is on the right track to recovery,” Nissan President and CEO Ivan Espinosa told a press conference. “We are taking the necessary steps decisively and consistently to deliver a sustained recovery and set up the next chapter of Nissan.” He hinted at the possibility of taking additional restructuring measures but did not provide details. On talks with Japanese industry peer Honda Motor Co. over possible collaboration, Espinosa said, “The latest discussions are mostly focused around the U.S. (market) and how we can collaborate in North America, given the difficult environment that we have with tariffs and the fact that we can both support each other in these hard circumstances.” He denied that the two automakers held detailed talks on a possible capital alliance. Nissan reduced its group operating loss projection for fiscal 2025 from 275 billion yen to 60 billion yen while raising its revenue estimate from 11.7 trillion yen to 11.9 trillion yen. The smaller operating loss forecast reflects a planned 160-billion-yen cut in fixed costs based on a restructuring package announced last May, which calls for, among other things, letting go of 20,000 workers and shuttering seven plants in Japan and abroad. Nissan is also significantly reducing its research and development expenses. Still, the company still faces a sales slump, lowering its full-year vehicle sales forecast by 8.9 pct from the fiscal 2024 result for the domestic market and by 6.0 pct for the European market. In China, sales are projected to fall 6.3 pct although the drop is smaller than previous estimate thanks to strong sales of new models. Sales in the North American market are projected to largely level off. Nissan estimates its global vehicle output for fiscal 2025 at 2.9 million units, down by 100,000 units from the earlier projection. For April-December 2025, Nissan reported a group net loss of 250.2 billion yen, compared with 5.1 billion yen in profit a year earlier. It posted an operating loss of 10.1 billion yen, against the year-before profit of 64 billion yen, and revenue of 8,577.9 billion yen, down 6.2 pct. END [Copyright The Jiji Press, Ltd.]