Nissan Motor Co. forecasts a 200 billion yen ($1.38 billion) net loss for the April-June quarter. The company blamed high U.S. auto tariffs imposed by President Donald Trump. Nissan also apologized for its worsening performance during its annual shareholder meeting.
CEO Espinosa Vows to Return to Profitability
New President and CEO Ivan Espinosa, who took over in April, promised to return the company to profitability by fiscal 2026. He outlined plans to restructure Nissan, including shutting down seven factories and cutting 20,000 jobs. Espinosa said he would quickly announce which factories would be affected once decisions were made.
Struggling with Poor Sales
Nissan has faced poor sales in both the U.S. and China. The company reported a net loss of 670.90 billion yen for fiscal 2024, ending in March. Initially, Nissan did not release an earnings forecast for the current fiscal year due to these challenges.
Shareholder Concerns and Uchida’s Attendance
During the meeting, shareholders criticized former CEO Makoto Uchida for the company’s performance. They questioned his responsibility and expressed frustration about the lack of dividends. At the same time, they pointed to large payouts to four former executives, including Uchida. Uchida chose not to respond.
Espinosa’s Calm Leadership
Despite shareholder dissatisfaction, some investors supported Espinosa. Tsuyoshi Maruki, CEO of Strategic Capital Inc., praised Espinosa’s calm demeanor. He expressed hope that Espinosa would lead Nissan toward positive results.
Plans to Cut Costs and Sell Headquarters
Nissan is also planning to sell its headquarters building in Yokohama. This move is part of its effort to cover the costs of its restructuring plan. The company is making these changes to help reduce losses and improve its financial outlook.
Collaborating with Honda and Mitsubishi
Nissan, Honda Motor Co., and Mitsubishi Motors Corp. had discussed a merger under a holding company to share costs for electric vehicle development. However, the talks broke down after two months. Despite this setback, the companies continue to explore collaboration on electric vehicle technology.
