Nissan loses A$7.1 billion, will cut another 11,000 jobs, close seven factories
Nissan has posted a net loss of ¥670.9 billion (A$7.1 billion) for the financial year that finished in March 2025, and has launched another series of cuts aimed at turning the troubled automaker around, as well as pause development on products due after March 2027.
In a press conference new Nissan CEO Ivan Espinosa called the awful numbers a 'wake up call', and the global environment 'volatile and unpredictacble ', which makes 'planning and investment increasingly challenging'.
In an earlier statement he said the automaker 'must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume'.
As it will be producing and selling few vehicles, Nissan will reduce its factory count from 17 to 10 by March 2028. It did not announce which factories will be getting the chop, but earlier reports indicate at least one will be in China.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Supplied Credit: CarExpert
It will also reduce its workforce by 20,000 people — around 15 per cent of its current 133,500 employees — by March 2028, which includes the 9000 job losses, mainly in manufacturing, Nissan announced six months ago. In addition to permanent and contract factory staff, there will headcount reductions in both research and development (R&D), and selling, general and administrative (SG&A).
Some R&D sites will be closed as Nissan tries reduce the department's average cost per hour by 20 per cent, while also reducing development time for new models to between 30 and 37 months. Longer term the automaker will reduce its number of platforms from 13 to 7, and cut parts complexity by 70 per cent by March 2036.
In addition to all this, the company has setup a cost-cutting 'transformation office' with an initial staff of 300 experts who have been 'empowered to make cost decisions'. Nissan N7 Credit: CarExpert
Development for post-March 2027 products and advanced activities have been temporarily paused to free up a further 3000 people to find savings. The company will also rework its supply chain, reducing the number of suppliers and ordering greater quantities from the ones it continues to work with.
The Yokohama-based automaker is hoping its latest turnaround plan, dubbed Re:Nissan, will help it return to profitability by the financial year ending March 2027.
Citing the constantly changing tariff situation in the US under President Trump, Nissan said it was unable to provide a forecast for income, profit, or free cash flow for the next financial year ending March 2026. Jeremie Papin, Nissan's chief financial officer, says the company's 'challenging situation' will continue into the current financial year. Third-generation Leaf Credit: CarExpert
Nissan has dropped some further product details, revealing there will be a new Skyline and an 'expansion of model coverage' for Japan.
In the US it will focus introducing hybrid models, and revitalising the Infiniti range with models based on Nissan cars, including a small crossover, likely based on the X-Trail/Rogue. For Europe the company's core models will be the Juke and Qashqai, with other locally produced cars coming from Renault.
Large SUVs will be Nissan's bread and butter in the Middle East, while Mexico continues to key manufacturing base for the firm. Mexico is Nissan's bright spot, with the brand continuing to be number one there thanks to a broad array of cars, including low cost vehicles, such as the March (a K13 Micra which began life in 2010), and V-Drive (an N17 Almera from 2011). Nissan Frontier Pro Credit: CarExpert
Perhaps most importantly Nissan will concentrate on developing plug-in hybrid and electric vehicles in China with its joint venture partner Dongfeng. Some of these models will be sold in Europe and the Middle East, hinting that the latter will likely receive the new Frontier Pro plug-in hybrid ute.
Sadly there's no new details about Nissan's plans for Australia, with the company simply that there will be a 'customised approach to other markets'.
In March the company revealed a slew of new models, and confirmed it will launch five models in Australia by March 2027, including the Ariya electric crossover, the Mitsubishi Triton-based Navara, the next-generation Patrol, Leaf crossover, and Qashqai e-Power hybrid.
MORE: Everything Nissan
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
35 minutes ago
- AU Financial Review
Jarden in talks to secure offshore partner, strategic investor
Jarden is courting strategic partnerships with independent and global advisory houses including New York-based Evercore, the boutique investment bank that has been shaking up Wall Street deal making. The negotiations between the Trans-Tasman firm's leadership and prospective offshore partners include discussions about taking a stake in Jarden, according to multiple people briefed on the matter but not authorised to speak publicly. The tie-up may also extend beyond merger and acquisitions advice to Jarden's equities and fixed income divisions.
West Australian
an hour ago
- West Australian
Amazon mega deal underscores economic relationship with US, minister says
Amazon's $20bn investment into Australian data centre infrastructure underscores the economic relationship with the US ahead of Anthony Albanese's first face-to-face with Donald Trump, Labor's industry tsar says. The Prime Minister announced the mega deal with Amazon at the tech giant's headquarters in Seattle overnight. Speaking to media, Mr Albanese also said he and the US President had 'scheduled' a meeting on the sidelines of the G7 in Canada after Mr Trump confirmed he would attend the summit. Pressure has been mounting on Mr Albanese to secure a carve out from sweeping US tariffs and shore up Washington's support for AUKUS after the Trump administration launched a review of the $368bn defence pact. Industry and Innovation Minister Tim Ayres said on Sunday the deal was 'not designed' to send a message to Mr Trump but that 'it certainly does underscore the depth of the economic and strategic and technological relationship' with the US. 'It's not just about trading in goods and services,' Senator Ayres told Sky News. 'It's about collaboration around science and research and development and in industrial terms.' He singled out AUKUS as 'offering opportunities for Australian and United States firms … to invest in each other's economy', highlighting it as 'a real counterpoint to the position that the United States has adopted around tariff announcements'. 'They are not the act of a friend, as has been said repeatedly by me and my colleagues,' Senator Ayres said. 'They are not in Australia's interest, but they're not in the United States' interest either. 'Australian steel, for example, exported to the United States, feeds into American supply chains and supports competitive industry that provides good jobs for American workers. 'Why on Earth would anybody want to make Australian steel in the United States more expensive? 'That's what the tariff measures do.' He said Mr Albanese would be putting that 'position directly to the President of the United States' when they meet next week. 'But the Amazon announcement does underscore how vital the direct economic relationship really is,' Senator Ayres said. At his Seattle press conference announcing the deal, Mr Albanese said he would raise tariffs and AUKUS with Mr Trump. Though he stopped short of saying the Amazon announcement was a message to the US leader. 'The US (Free Trade Agreement) has been important,' Mr Albanese told reporters. 'It's enjoyed bipartisan support in Australia and indeed in the United States. 'And so we welcome very much American investment in Australia.' He added it was 'important to recognise as well that the United States has a two for one surplus when it comes to the trading relationship in not just in goods, but in services as well'. 'And we want to grow the economic relationship between our two countries,' Mr Albanese said. 'And I'm sure that when I have the opportunity to have discussions with President Trump, we will speak about the important economic relationship between our two countries, which is in the interests of both Australia and the United States.' Under the deal, Amazon has committed to pumping cash into developing data centres in Melbourne and Sydney over the next five years, focusing on storage, networking, analytics, and secure services supporting cloud and AI. The firm will build renewable energy sources to support its operations. Speaking alongside Mr Albanese, Amazon Web Services chief executive Matt Garman dismissed concerns Australia's grid lacked the power needed for AI. 'I think definitely the explosion of AI requires a lot of power, so that's one of the things we're thinking about,' Mr Garman told reporters. 'I think here in the United States, we see nuclear as part of that portfolio. 'Our investments in Australia are wind and solar, but I think depending on the local setup and economies and other things, it's a global question, but there's no question that we will continue to need more and more power going forward.'
Perth Now
an hour ago
- Perth Now
Albo's $20bn boon ahead of Trump meet
Amazon's $20bn investment into Australian data centre infrastructure underscores the economic relationship with the US ahead of Anthony Albanese's first face-to-face with Donald Trump, Labor's industry tsar says. The Prime Minister announced the mega deal with Amazon at the tech giant's headquarters in Seattle overnight. Speaking to media, Mr Albanese also said he and the US President had 'scheduled' a meeting on the sidelines of the G7 in Canada after Mr Trump confirmed he would attend the summit. Pressure has been mounting on Mr Albanese to secure a carve out from sweeping US tariffs and shore up Washington's support for AUKUS after the Trump administration launched a review of the $368bn defence pact. Industry and Innovation Minister Tim Ayres said on Sunday the deal was 'not designed' to send a message to Mr Trump but that 'it certainly does underscore the depth of the economic and strategic and technological relationship' with the US. Industry and Innovation Minister Tim Ayres says Amazon's $20bn investment underscores Australia's economic relationship with the US. NewsWire / Martin Ollman Credit: News Corp Australia 'It's not just about trading in goods and services,' Senator Ayres told Sky News. 'It's about collaboration around science and research and development and in industrial terms.' He singled out AUKUS as 'offering opportunities for Australian and United States firms … to invest in each other's economy', highlighting it as 'a real counterpoint to the position that the United States has adopted around tariff announcements'. 'They are not the act of a friend, as has been said repeatedly by me and my colleagues,' Senator Ayres said. 'They are not in Australia's interest, but they're not in the United States' interest either. 'Australian steel, for example, exported to the United States, feeds into American supply chains and supports competitive industry that provides good jobs for American workers. 'Why on Earth would anybody want to make Australian steel in the United States more expensive? 'That's what the tariff measures do.' He said Mr Albanese would be putting that 'position directly to the President of the United States' when they meet next week. 'But the Amazon announcement does underscore how vital the direct economic relationship really is,' Senator Ayres said. At his Seattle press conference announcing the deal, Mr Albanese said he would raise tariffs and AUKUS with Mr Trump. Though he stopped short of saying the Amazon announcement was a message to the US leader. 'The US (Free Trade Agreement) has been important,' Mr Albanese told reporters. 'It's enjoyed bipartisan support in Australia and indeed in the United States. 'And so we welcome very much American investment in Australia.' He added it was 'important to recognise as well that the United States has a two for one surplus when it comes to the trading relationship in not just in goods, but in services as well'. 'And we want to grow the economic relationship between our two countries,' Mr Albanese said. 'And I'm sure that when I have the opportunity to have discussions with President Trump, we will speak about the important economic relationship between our two countries, which is in the interests of both Australia and the United States.' Prime Minister Anthony Albanese (left) and Amazon Web Services chief executive Matt Garman (right) announced the data centre investment. NewsWire / PMO Credit: News Corp Australia Under the deal, Amazon has committed to pumping cash into developing data centres in Melbourne and Sydney over the next five years, focusing on storage, networking, analytics, and secure services supporting cloud and AI. The firm will build renewable energy sources to support its operations. Speaking alongside Mr Albanese, Amazon Web Services chief executive Matt Garman dismissed concerns Australia's grid lacked the power needed for AI. 'I think definitely the explosion of AI requires a lot of power, so that's one of the things we're thinking about,' Mr Garman told reporters. 'I think here in the United States, we see nuclear as part of that portfolio. 'Our investments in Australia are wind and solar, but I think depending on the local setup and economies and other things, it's a global question, but there's no question that we will continue to need more and more power going forward.'
