Nissan racks up red ink, but the Japanese automaker promises a return to profit later this year
Japanese automaker Nissan Motor Corp sank into a 115.8 billion yen ($782 million) loss for April-June, but promised Wednesday to return to profitability later this year.
Nissan did not give a full year net profit forecast. It recorded a 28.6 billion yen profit during the April-June quarter last year.
Quarterly sales for the current fiscal year slipped nearly 10% to 2.7 trillion yen ($18 billion).
The maker of the Leaf electric car and Infiniti luxury models said the results were better than expected.
But it faces 'headwinds,' including declining sales, unfavorable exchange rates and President Donald Trump's tariffs.
Ivan Espinosa, who took the helm at Nissan in April replacing Makoto Uchida, said the company's recovery plan remained urgent. Uchida stepped down to take responsibility for the dismal fiscal results.
Espinosa noted the initial steps of the company's revival plan were kicking in, including cutting costs, realigning products, reshaping a market strategy and strengthening partnerships.
'We must now go further and faster to achieve profitability. Everyone at Nissan is united in delivering a recovery that will ensure a sustainable and profitable future,' he said.
Nissan, based in the port city of Yokohama, has been struggling but is promising a turnaround under Espinosa, a Mexican with two decades of experience at Nissan.
The company said some of its models, such as the N7 in China and the Magnite in Mexico, have been selling well recently.
Nissan recently ditched talks with Japanese rival Honda Motor Co. to set up a joint holding company. They said they will continue to cooperate on technology development.
Nissan is closing its flagship factory in Opama, Kanagawa Prefecture, by the end of the 2027 fiscal year, moving production there to another plant in southwestern Japan.
Nissan is also slashing 15% of its global work force, or about 20,000 employees. That includes a 9,000 head count reduction announced late last year.
© 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Nikkei Asia
25 minutes ago
- Nikkei Asia
Shiseido to cut 300 US jobs as acquired skin-care brand struggles
Shiseido executives outlined U.S. restructuring plans at a press conference on Aug. 6. (Photo by Jyo Chou) RYOTA NISHIYAMA and JYO CHOU TOKYO -- Shiseido's net profit for January-June improved from last year thanks to restructuring in Japan and China, the Japanese cosmetics maker said Wednesday, but continued struggles at a U.S. subsidiary are triggering a new shake-up including job cuts.
Nikkei Asia
25 minutes ago
- Nikkei Asia
Japan presses Lutnick to implement agreed cut to US auto tariffs
Japan's chief tariff negotiator Ryosei Akazawa speaks to reporters at an airport near Washington on Aug. 5. © Kyodo WASHINGTON (Kyodo) -- Japan's chief tariff negotiator Ryosei Akazawa on Wednesday held talks with U.S. Commerce Secretary Howard Lutnick, urging him to implement as early as possible an agreed cut to tariffs on Japanese car and auto part imports, according to the Japanese government. During a meeting in Washington that lasted about 90 minutes, Akazawa and Lutnick confirmed the importance of a recent bilateral trade deal and efforts to steadily carry out initiatives that will be in the "interests of both countries," the government said. It said Akazawa also asked Lutnick to make sure the United States puts the terms of the deal into practice as agreed by both sides. Akazawa's visit for his ninth round of talks with U.S. Cabinet members comes two weeks after he and U.S. President Donald Trump struck the deal, under which his administration committed to lowering the so-called reciprocal tariff rate on Japanese goods, due to take effect on Thursday, to 15 percent from the threatened 25 percent. At that time, Trump also agreed to cut auto tariffs to 15 percent for Japan in exchange for a promise to invest massively in the United States. However, unlike the country-specific tariff rate, it remains unclear when the Trump administration plans to implement the lowered auto tariffs. Akazawa, Japan's minister for economic revitalization, is scheduled to stay in the U.S. capital through Friday and may also hold talks with Treasury Secretary Scott Bessent.
Nikkei Asia
25 minutes ago
- Nikkei Asia
Japan's IHI joins Italy's Strait of Messina Bridge project
Artist's rendering of the Strait of Messina Bridge connecting Italy's southern tip with the island of Sicily (Image courtesy of IHI) ANNU NISHIOKA TOKYO -- Japanese engineering company IHI will take part in the planning of a suspension bridge project in Italy with a contract value worth 10.6 billion euros ($12.3 billion), the company announced Wednesday.
