Nissan hit by $535-million quarterly loss due to U.S. tariffs, restructuring and lower sales
Japan's third-largest auto maker is in the midst of a sweeping turnaround plan and has pledged to close some seven plants globally and lay off 15% of its workforce.
Nissan reported an operating loss of 79.1 billion yen ($535 million) for the quarter from April to June, narrower than an average estimate for a loss of 123.9 billion yen in an LSEG survey of five analysts.
The result compared to a company forecast for a loss of 200 billion yen when it reported results for the previous financial year in May.
'We're still in the early stages of our recovery,' CEO Ivan Espinosa told a news conference after the results release, adding that the auto maker was making progress in cutting costs.
In a statement, Nissan said it would stop output at its Civac plant in Mexico by March 2026 in its global restructuring plan, integrating vehicle production from that plant to its Aguascalientes complex during the current financial year.
The news comes after Nissan said this month it would stop producing cars at two domestic sites, namely its Oppama plant, by March 2028, and Nissan Shatai's Shonan factory, by March 2027.
The auto maker first started operations at the Civac plant in 1966 in its initial expansion outside Japan. It has turned out more than 6.5 million vehicles so far, Nissan said.
The automaker's drastic restructuring effort aims to slash costs and restore profitability and performance in key markets such as the United States and China.
The plan includes slashing global production capacity to 2.5 million vehicles from 3.5 million and manufacturing sites to 10 from 17.
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Toronto Sun
20 minutes ago
- Toronto Sun
Moe disappointed by Trump's tariffs but says Carney should remove countermeasures
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Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account U.S Commerce Secretary Howard Lutnick has asked Ottawa to do away with countermeasures, and Moe says Canada should heed the advice. 'If we're serious about achieving a renewed, revamped and enhanced trade environment or some type of a new and improved (Canada-United States-Mexico trade agreement), somebody's going to have to move in this space,' Moe said Friday at a news conference. 'We would suggest that it should be Canada.' Trump followed through late Thursday on his threat to hit Canada with 35 per cent tariffs — up from 25 per cent — on goods not compliant with the trade agreement, better known as CUSMA. 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Globe and Mail
20 minutes ago
- Globe and Mail
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Globe and Mail
an hour ago
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