Latest news with #JeremiePapin
Bloomberg
23-05-2025
- Automotive
- Bloomberg
Nissan Job Cuts to Cost an Extra $418 Million This Fiscal Year
Nissan Motor Co. has said job cuts it announced as part of a broader restructuring at the company could cost an additional ¥60 billion ($418 million) this fiscal year. The estimate on expense that will be incurred to eliminate jobs was shared with analysts by Chief Financial Officer Jeremie Papin earlier this month, a transcript of the call published Friday showed. The additional costs will be reflected in the current fiscal year that began April 1, according to the filing.
Yahoo
14-05-2025
- Automotive
- Yahoo
Nissan maneuvers to soften $3B hit from tariffs
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Nissan Motor Co. believes its tariff mitigation strategies can reduce by 30% a projected 450 billion yen ($3 billion) impact to its bottom line from U.S. levies, the automaker said Tuesday. Measures include prioritizing sales of U.S.-assembled vehicles, leveraging U.S. production capacity, shifting production of tariff-affected models to other markets and collaborating with suppliers on mitigation plans. The automaker will also look into future localization studies. Nissan has already taken steps to boost domestic production as it sorts through aggressive cost cutting to improve profitability. Last month, the automaker reversed a plan to scale back production of its Rogue SUV at its plant in Smyrna, Tennessee. The automaker in January had revealed it would reduce production in Tennessee from two lines to one but chose to maintain both to keep more localized volume in the U.S. that was free of tariffs. Nissan said less than 45% of the vehicles it sells in the U.S. are produced in Mexico and Japan. Most of those vehicles, about 300,000, are built in Mexico, while 120,000 units are made in Japan. CFO Jeremie Papin said on a call with analysts that since some tariffs are already in effect, the automaker is focused on boosting U.S. sales where it can take advantage of its North American production. 'We're closely working with our suppliers on further mitigation plans as the third area of tariff is imports of parts for our U.S. production,' Papin said. Because of the global uncertainty fueled by tariffs, Nissan joined other automakers, including Ford, General Motors and Stellantis, in withholding future guidance while discussing its full-year results with analysts Tuesday. 'The guidance for FY25 operating profit, net income and auto free cash is still to be determined,' Papin said on the call. 'This uncertainty comes from the potential impact of tariffs and additional restructuring costs, which are currently being assessed.' Like other automakers, Nissan is hopeful trade talks between the U.S. and other countries will lead to better times for the industry, according to President and CEO Ivan Espinosa. A lack of certainty makes it difficult to plan, he said on the call. 'We hope that a solution can be coming soon,' Espinosa said. 'Same as other OEMs, we are expecting that some reasonable conditions can come and also some stability can come because part of the problem is of course the situation itself, but the other problem is lack of certainty.' Recommended Reading Nissan slashing 20K jobs by FY2027 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
14-05-2025
- Automotive
- News.com.au
Nissan bosses announce $7 billion loss and 20,000 job cuts
It hasn't been a smooth ride at Nissan for Ivan Espinosa. Just over a month into the job, the new chief executive officer has announced another 11,000 job cuts and plans to shut seven factories globally. The cuts will bring the total headcount loss to about 20,000 as the battered Japanese carmaker fights to keep afloat. The cuts come on the heels of a catastrophic year for the automaker, with its annual operating profit plunging 88 per cent to just $682 million. A net loss of 671bn yen (AUD $7.033bn) in the 12 months to March paints a bleak picture for a company that industry insiders predicted in December would have just 12 months to survive. Nissan also failed to issue its forecast for the year ahead, a telling sign of trouble. Espinosa, formerly Nissan's product strategy chief said the company would slash costs by $4.8 billion through a combination of plant closures, workforce reductions and supply chain simplifications. The company plans to shrink its manufacturing footprint from 17 plants to just 10 and reduce parts complexity by 70 per cent. Espinosa laid the situation bare during a press conference in Tokyo. 'Our full-year financial results are a wake up call. The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support,' he said. Nissan chief financial officer Jeremie Papin, speaking alongside Espinosa, warned the pain was far from over. Nissan is expecting an operating loss of $2.1 billion in the first quarter alone. MORE: Nissan claims it is 'here to stay' The automaker has lost ground in US and Chinese markets and, like rivals, is being hammered by new American tariffs and tough competition from Chinese EV makers. Adding to the damage is the failed merger talks with Honda which resulted in Espinosa's appointment as CEO. Former Nissan boss Makoto Uchida was sacked in March after talks with Honda collapsed. The company announced Uchida's exit at the same time the Japanese automaker revealed Espinosa would take his place as part of sweeping cuts across its boardroom. Espinosa is the fourth executive to lead the company in six years following the sensational arrest – and escape – of enigmatic chief executive Carlos Ghosn in 2018. The troubled company made global headlines in November when whistleblowers revealed that the company might not survive another 12 months. Nissan announced plans to merge with Honda in December, but the Japanese giants stepped away from the negotiating table in February when they could not reach a compromise. Leaks to business publications suggested Nissan's Uchida could not stomach his brand being the junior partner in any joint venture, and that Honda did not want to deal with him any longer. Espinosa has close ties to Australia following a role leading the company in South East Asia, where the Nissan Navara ute is a key model.
Motor 1
13-05-2025
- Automotive
- Motor 1
Nissan Lost $4.5 Billion Last Year. Here's How It Plans to Survive
Nissan just had its worst financial year in over two decades. The Japanese brand announced its final results for Fiscal Year 2024 (FY24), which ended on March 31. As expected, the numbers are down. Way down. Operating profit fell 87.7 percent due to "lower volume, a weaker mix, pricing pressure, and increased costs," per Nissan Chief Financial Officer Jeremie Papin. Increased cost was the big factor, with $405 million going to restructuring costs. At the end of the day, Nissan recorded a net loss of $4.5 billion. Photo by: Christopher Smith / Motor1 Sales Were Healthy, Despite the Losses Ironically, Nissan's actual sales weren't that bad. The automaker fell just 2.8 percent globally, led by China, where sales were off 12.2 percent. In North America, sales were actually up 3.3 percent. The company's revenue was nearly flat year over year, falling less than half a percent. But Nissan is drowning in costs. 'Our full-year financial results are a wake-up call,' said Nissan CEO Ivan Espinosa. "The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support." As such, Nissan has already written off FY25 as a transition year. Global sales are projected to decline slightly as it loses more money, but exactly how much money is still unknown. Uncertainty involving tariffs is throwing a monkey wrench into forecasts for pretty much every automaker , but Nissan currently estimates tariffs will cost the company approximately $3 billion. That's the bad news. But Nissan isn't dead yet. Nissan's Plan to Recover 'Nissan must prioritize self-improvement with greater urgency and speed, aiming for profitability with less reliance on volume," Espinosa said. "This is what we're setting out to do with our new recovery plan, RE: Nissan." Yes, RE: Nissan is the official name for the company's turnaround plan. It starts with liquidity—Nissan still has $23 billion to work with, plus another $14.2 billion in credit. From there, step one is to cut costs, and Espinosa confirmed an additional 10,000 layoffs would come , bringing the total workforce reduction to approximately 20,000 people. The majority of these cuts will come on the labor side, due largely to Nissan closing seven plants, bringing its total down to 10. This will all happen by 2027. Photo by: Nissan Nissan plans to consolidate its manufacturing processes to keep utilization near 100 percent. For new product development, the company will lower engineering costs by 20 percent and achieve a 70-percent reduction in complexity. Development time will also be ramped up to 30 months. If everything works out, these measures will reduce costs by $3.4 billion. 'This is the area where we need to go further and faster,' said Espinosa. Companies can't simply cut the fat to achieve profitability, so the other aspects of RE: Nissan will utilize its existing partnerships to better serve specific markets around the globe. The company will seek to consolidate its supply chain to achieve more volume with fewer suppliers. And new-vehicle development will not slow down. Espinosa emphasized new hybrids and crossovers for North America were coming, and yes, a new Skyline is confirmed . However, it's unclear at this time if it will be a sedan, a fire-breathing GT-R successor, or a bit of both. Only time will tell if Nissan's plan will work. Right now, general tariff chaos makes it incredibly difficult to predict the automotive future. But the takeaways from Nissan's FY24 report are twofold: The company is selling cars. And it still has money in the bank. Things could certainly be worse, and if this plan comes together, Nissan expects profitability in 2026. "2025 will be a year of transition for us, a year of decisions," said Papin. "We have enough liquidity to cover our funding needs, which will support us as we restructure our business. While FY25 is a year of challenges and uncertainties, the actions we are implementing as part of our new recovery plan are designed to yield positive results in FY26." More News From Nissan: Carlos Ghosn Says Nissan Is in a 'Desperate Situation' Nissan's Bold New Strategy: Sell More Cars Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Nissan Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Yahoo
13-05-2025
- Automotive
- Yahoo
Nissan to cut 11K more jobs, shut down some plants. What to know in Tennessee
Nissan announced that it's cutting an additional 11,000 jobs, bringing the Japanese automaker's total workforce reduction to around 20,000. This news comes after Nissan reported a devastating 88% drop in operating profit year-over-year. Chief Financial Officer Jeremie Papin said the company expects a 200 billion yen ($1,352,111,000) operating loss in the first quarter, according to Reuters. Several factors including past leadership, weakening demand, and a failed merger attempt have all contributed to Nissan's dire straits. Nissan is in deep trouble if the company can't significantly reduce operating expenses and boost sales soon. How did Tennessee's favorite automotive brand end up in such a tight spot? Former Chairman Carlos Ghosn focused too heavily on sales volume and not enough on keeping the company's portfolio modern and competitive, said analysts. As a result, Nissan is losing sales to rival automakers. CEO Ivan Espinosa called full-year financial results "a wake-up call" during a press conference, Reuters reported. Furthermore, the current market presents several challenges such as tariffs, weakening sales due to demand, and competition from popular Chinese automakers. Merger talks with Honda fell through, causing some serious setbacks for the company. Nissan is experiencing a perfect storm of issues causing the automaker to struggle with sales and operating profit. So how (if at all) does this affect Tennesseans? The Japanese automaker is closing seven plants to find cost savings of nearly 500 billion yen. Reuters said the ccompany did not give specifics on which plants it expects to close. According to Nissan, the automaker's Smyrna plant currently employs over 5,700 workers. The company employs around 21,000 workers in the United States. Nissan is looking to maximize production at the Smyrna plant (its largest American production plant) as reported by CNBC on April 16. So, there's no telling where the Smyrna plant stands in Nissan's cost savings efforts, but previous plans to ramp up production could be a positive sign for workers. Though Nissan didn't specify which plants would be closing, there are a few things that are clear about the company's path forward. Nearly 20,000 Nissan employees are at risk of losing their jobs and seven plants could shut down in the near future. Nissan also plans to "reduce the complexity of parts by 70%" which likely means increased local production to avoid heavy tariff costs. The way Nissan vehicles are manufactured, where they are assembled, and who assembles them is about to change drastically. CEO Ivan Espinosa's new cost savings goal is an attempt to keep the brand afloat amidst one of the most trying markets automakers have seen in years. President Donald Trump recently offered car manufacturers a reprieve from tariffs in the form of a new proclamation. On the other hand, future trade relations with China and other major trade partners remain unpredictable. −Reuters contributed to this story This article originally appeared on Nashville Tennessean: Nissan shutting down plants, cutting jobs. Will Tennessee be impacted?
