
Nissan estimates £4BN net loss as it embraces major cost-cutting measures
The Yokohama car firm had originally predicted a net loss of ¥80billion (£426million) for the year ending 31 March 2025. Towards the end of last year, alarm bells were sounded at the company, which was described as being 'on the brink of collapse' with 'just 12 months to survive' amid a company-shaking sales slump in China and the US, its two biggest markets.
On Thursday, it revised down its full-year sales volume reported in February by another 3.35million units. The Japanese auto firm, which employs 7,000 people in the UK and 17,000 in the US, has this month drafted in new chief executive Ivan Espinosa, who will spearhead a dramatic cost-cutting programme in an effort to rapidly turnaround its fortunes.
Nissan said in November it would axe 9,000 jobs and 20 per cent of its global manufacturing capacity, as it scrambles to reduce costs by £2billion in the current fiscal year. It attributed the enormous rise in losses to the cost of the revival plan set out by Espinosa, including a ¥500billon (£2.6billion) reduction in the value of its production facilities and ¥60billion (£316million) in restructuring costs.
It looks certain to be the company's largest ever loss and comes as its new CEO is expected to lower the axe on thousands of global jobs, reduce production capacity and shutter some of its vehicle plants. It has yet to rule out closing its Sunderland factory - Britain's biggest car producer - as part of its restructure. Thursday's report comes days after Alan Johnson, Nissan's senior vice-president for manufacturing, supply chain and purchasing, told MPs that the UK is 'not a competitive place to be building cars', citing energy and labour cost, as well as the lack of a local supply chain.
Speaking to the House of Commons' Business and Trade Committee on Tuesday, he said: 'It is energy costs - it is the cost of everything involved in the cost of labour, [and] training. It is the supplier base, or lack of - all sorts of different issues.' Approximately 6,000 people are employed at the Sunderland plant. Last year, 282,124 vehicles - including Jukes, Leaf EVs and Qashqais - were built there. This output represented more than one in three (36.2 per cent) passenger cars made in UK factories in 2024. However, production was down some 13.2 per cent on the year previous.
It was confirmed in February that a late shift on one of the factory's assembly lines would be closed, but no jobs were lost after some 400 affected workers were moved other production lines to 'maximise efficiency'. Ivan Espinosa took over as CEO on 1 April. A mechanical engineer who has been with Nissan since 2003 in a variety of strategy and planning jobs, he now has the monumental task of bringing the car maker back from the brink.
In the company statement delivered on Thursday, he said: 'We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets. 'We now anticipate a significant net loss for the year, due primarily to a major asset impairment and restructuring costs as we continue to stabilise the company. 'Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period.'
The Japanese car company estimates to end the fiscal year with almost ¥1.50trillion (£7.9billion) in its coffers. This is down on the near-¥1.55trillion (£8.2billion) it had at the end of 2023-24. The firm added that it expects to end the year with ¥1.9trillion (£10billion) of debt. Nissan and Honda ended merger talks to forge a £45billion car company in February.
The deal broke apart due to Honda's proposal to make Nissan a subsidiary, sources have said. Nissan said it now expects full year operating profit of ¥85billion (£448million), around 30 per cent lower than it previously forecast. The automaker, which said it will forego a dividend for the full year, will report its earnings on 13 May.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


STV News
2 hours ago
- STV News
Rachel Reeves pins hopes of a reset on Spending Review
Each year, the chancellor gets to set a Budget – a moment to grab the nation's attention and show voters that the people running the country understand their struggles, and are on their side. It's supposed to be the annual set piece of any UK Government. But on Wednesday, Rachel Reeves will deliver a statement to the House of Commons that is arguably more important than any Budget she'll deliver. This week's Spending Review isn't even considered a 'fiscal event' – that means there shouldn't be any detailed tax and spending decisions at all. Instead, the chancellor is supposed to plot out overall public spending for the three years ahead, department by department. The reason it matters so much is because the UK Government is desperate to change perceptions of how it's managing the economy and the public finances. Even though she should have a few more Budgets left before the next general election, this could be Rachel Reeves' last chance to change course. Labour came to power with a brutal message when it came to the public finances – not 'things can only get better', but 'things are definitely going to get worse'. The idea was to show voters that finally, Labour could be trusted with people's tax money. That approach led Reeves to announce the slashing of Winter Fuel Payments as one of her first policies in office. But rather than building trust, taking help with energy bills away from millions of pensioners has been hugely unpopular. Bruised by the backlash, today the chancellor confirmed a U-turn and announced that millions of pensioners across England and Wales will have their Winter Fuel Payment restored – pensioners in Scotland had already been told by the Scottish Government that they will get a payment this winter, regardless of their circumstances. But the political damage has already been done, and many Labour MPs feel it could have been avoided if Reeves had toned down the tough economic message just a little, and not suffocated any sense of hope just a few weeks into office. The UK Government now faces another critical moment, and it can't afford to make the same mistake. After boosting investment and day-to-day spending in her first Budget, this week's spending review will put a much tighter squeeze on the public finances. Overall, spending will continue to rise, but by much less than in Labour's first year in power – and the biggest share of any additional cash will be swallowed up by the NHS, meaning many other departments and public services could see their budgets cut. The UK Government is anxious to rebut any claims that this is a return to austerity, and looking at public spending as a whole, that's true. But that doesn't mean there won't be more tough, unpopular decisions in the final years of this Labour government, as a result of this week's Spending Review. Most of those decisions will only directly affect public services south of the Border, but they will have an impact on the Scottish Government's overall budget in years to come. Facing the same pressures of rising costs and an ageing population, that means tough decisions down the line for whoever is in power at Holyrood, too. Without a bit more optimism than she's managed so far, the chancellor risks fuelling the trends in the polls, with Reform rising and Labour hitting new lows. And in Scotland, the economic narrative has also hurt Labour and given hope to the SNP – even though it was Scottish Labour that emerged victorious at the Hamilton, Larkhall and Stonehouse byelection. That win was very much against the odds, and in spite of the UK Government's unpopularity. This week represents Rachel Reeves and Keir Starmer's best chance of a reset. It could be their last chance, too. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country


Auto Blog
5 hours ago
- Auto Blog
Nissan Is Working On A Cheap Sedan For The Masses
Nissan Working On Several New Cars Embattled automotive giant Nissan is facing a tough time. The company has been forced to lay off thousands of workers and cancel plans for increased battery production. Things are going so badly that some question how long Nissan can survive. But with new CEO Ivan Espinosa at the helm and promising new vehicles, hope endures, and one of those new vehicles has just been unofficially revealed through patent images discovered by Top Gear Philippines. The images were filed in China in September last year and officially registered exactly one month ago, suggesting that the sedan they depict will make production. Previous Pause Next Unmute 0:09 / 0:09 Nissan's revolutionary self-driving tech hits Japan's streets Watch More A New Design Language For A New Era The boomerang-shaped headlights remind us of some Hyundai and Kia designs, while the lightbar at the rear calls to mind the Dodge Charger and Durango. And while we can't see much detail in these images, the fastback shape indicates that this vehicle may play loose with the term 'sedan,' likely appearing with a liftback tailgate like the latest Audi A5. This gives the vehicle the style and grace of a sedan with the cargo-carrying and loading abilities of a hatchback. More than that, we cannot be sure of yet, but this design conforms to the new language heralded by last year's Beijing Auto Show concepts, which included a sedan with similar looks to this. That Nissan Evo concept was announced as a plug-in hybrid, and it's likely that this new sedan would also avoid going all-electric. Nissan's New Sedan Will Be Cheap Since we don't know exactly what car this previews, it's difficult to estimate the price. Its size is unclear from this filing, and both the Altima and the Sentra could do with a makeover. A new Maxima could also make a certain amount of sense, especially with the upcoming Leaf crossover filling the needs of those who need a taller vehicle. Until we hear something directly from Nissan, though, it's too soon to get excited. The fact that the patent images were filed in China could mean that the car will never reach America, especially if it ends up being produced there, but it also means this shouldn't carry an exorbitant price, and the U.S. market is in dire need of more affordable cars. About the Author Sebastian Cenizo View Profile


North Wales Chronicle
12 hours ago
- North Wales Chronicle
New Zealand Rugby chief executive Mark Robinson resigns
NZR chairman David Kirk thanked Robinson for his 'great service' to the organisation and the sport over six years. 'On behalf of the Board, I'd like to recognise Mark for his great service to NZR and the sport,' he said in a statement. 'He has led with a passion for rugby and we thank him for his commitment over the past six years. 'Mark has driven significant change, both in New Zealand and internationally, and the Board believes the organisation is well-placed to capitalise on this. Of note was his leadership through a global pandemic that saw the game deal with an unprecedented crisis.' He added: 'Mark will continue to lead for the remainder of the year as we conclude key projects, and the Board will now commence recruitment for the new role.' In a statement, Robinson said he was leaving the role to join his wife and children, who have relocated to Australia. 'My family have been based in Australia for the last few months with all three of my children studying there,' he said. 'My wife is already there supporting them and, ultimately, I will be joining them early next year. 'The past six years have been a period of rapid change, or unprecedented challenges through the pandemic, and significant evolution across commercial, competitions and structures. I will reflect on that as I get closer to stepping away, but I firmly believe the foundations of our organisation are extremely strong and the game is well-placed for the future. 'Our vision is to inspire and unify through rugby and that opportunity has been an easy motivator for me every single day, from the community game right through to the international level.' The 51-year-old called his tenure a 'privilege' and said his focus was on 'supporting the Board and leading the organisation through a pivotal year, including ensuring the Black Ferns have the support they need to defend the Rugby World Cup in England'. He added: 'We also remain focused on implementing a new financial model for the game in New Zealand and completing the remaining work on what will be an exciting future international calendar.' Robinson took up the role in January 2020, having previously served on the organisation's board for seven years. His playing career included nine Tests for the All Blacks between 2000 and 2002 and appearances for the Bristol Bears and Japanese side Kobelco Steelers.