Latest news with #NissanMotorCompany
Yahoo
a day ago
- Automotive
- Yahoo
Nissan to raise JPY 1 trillion (US$7bn) to pay debt
Nissan Motor Company is looking to raise up to JPY 1 trillion (US$ 7 bn) this year from the issuance of new corporate bonds and by selling assets, as it faces massive bond redemptions and restructuring costs, according to local reports citing a company source. The struggling Japanese automaker is understood to be facing bond redemptions worth around JPY 780 billion in the current fiscal year (FY2025), ending on 31st March 2026. The company is also facing substantial restructuring costs, after it announced plans to reduce its number of global vehicle production plants from 17 to 10 by FY2027, cutting around 20,000 jobs. As well as issuing new convertible bonds worth JPY 630 billion, Nissan is also looking to sell non-core assets including shares in affiliated companies and real estate assets. This includes selling and leasing back its head office building in Yokohama and selling properties in the US. The automaker also plans to sell part of its 15% stake in its Alliance partner Renault and its entire shareholding in battery manufacturer AESC Group this year. Separate reports suggested Nissan is looking to secure a GBP 1 bn loan guaranteed by UK Export Finance, a British government-linked institution, to help safeguard its UK manufacturing operations. Among the expected plant closures are facilities in Japan, Mexico, and South Africa. Nissan is understood to be aiming to raise a large proportion of the funds in the next few months. "Nissan to raise JPY 1 trillion (US$7bn) to pay debt" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
3 days ago
- Automotive
- Yahoo
Nissan's global sales fall by 7% in April
Japanese automaker Nissan Motor Company reported a 7.2% year-on-year fall in global sales to 225,729 vehicles in April 2025, including Nissan and Infiniti branded models, with domestic and overseas volumes both weaker. Sales in Japan plunged by 19% to 24,348 units last month while overseas deliveries dropped by 7.2% to 201,381 units. In the first four months of 2025, global sales fell by 5.9% to 1,095,513 units from 1,163,646 in the same period last year, with sales in Japan dropping by over 11% to 157,649 units while overseas sales declined by almost 5% to 937,864 units. China was the worst-performing major overseas market year-to-date, with sales plunging by over 25% to 167,630 units, while sales in Europe fell by 4.9% to 132,822 units. Deliveries in North America rose by 3.3% to 465,569 units, including a 3.5% rise in US sales to 339,629 units, a 5.7% rise in sales in Mexico to 84,917 units, and an 8.1% rise in sales in Canada to 40,440 units. Sales in other markets combined fell by 4.4% to 171,843 units. In terms of production, global volumes dropped by 12.5% to 956,327 in the first four months of 2025, with output in Japan falling by over 11% to 201,902 units while overseas volumes dropped by 13% to 754,425 units – driven lower by a 26% plunge in Chinese output to 162,908 units and a 14% decline in UK output to 92,044 units, while production in Mexico rose by just 1% to 221,481 units. Exports from Japan fell by 14.4% to 113,220 units year-to-date, with shipments to North America plunging by 26.5% to 48,562 units while exports to Europe plunged by 31% to 12,048 units. "Nissan's global sales fall by 7% in April" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
19-05-2025
- Automotive
- Yahoo
Nissan to close two plants in Kanagawa Prefecture
Nissan Motor Company announced that it plans to shut down seven of its current 17 vehicle assembly plants worldwide and make around 20,000 redundancies from its global operations by the 2027 financial year (FY2027), which ends on 31 March 2028. The restructuring is part of its Re:Nissan recovery plan, after the Japanese automaker reported a net loss of JPY 671 billion in FY2024. Unconfirmed reports in Japan, citing an unnamed company source, have suggested that Nissan is considering closing two plants in Kanagawa Prefecture as part of its restructuring plans. The plants said to be marked for closure include the main Oppama plant in Yokosuka, which makes the Leaf, Note and Note Aura models, and the Shonan plant, which makes the NV200 and AD and is controlled by its subsidiary Nissan Shatai Company. The two plants have among the lowest capacity-utilization rates in the company's domestic network, due mainly to weak demand for the models they produce. Nissan has yet to initiate talks with labour unions, suppliers and the local governments, however. Nissan pointed out that it has not named any specific domestic plants that it plans to close, and that the reports are 'speculative and not based on any official information from the company." In terms of overseas facilities, Nissan has already announced that it will close a plant in India and one in Argentina. By FY2027, Nissan plans to cut its global capacity by 30% to 2.5 million units, excluding China, as it focuses more on higher-margin products. "Nissan to close two plants in Kanagawa Prefecture – reports" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Yahoo
14-05-2025
- Automotive
- Yahoo
Nissan targets return to profitability in FY2026
Nissan Motor Company reported a net loss of JPY 671 billion (US$4.55 billion) in the 2024 fiscal year (FY2024), which ended on 31 March 2025, slightly better than the JPY700 billion-JPY 750 billion it had forecast in February but still a massive loss nevertheless. This compares with a net profit of JPY 426.6 billion in the previous fiscal year. Global revenues fell slightly to JPY 12,633.2 billion, while its operating profit plunged by 88% to JPY 69.8 billion, as the company lagged in terms of new product development and the adoption of new technologies. Its operating margin dropped from 4.5% to 0.6%. Nissan is forecasting a further decline in global revenues for the current fiscal year (FY2025), to JPY12,500 billion. The struggling automaker did not provide an earnings forecast for the year, although it is expected to be negative as the company steps up restructuring under its newly-launched 'Re:Nissan' recovery plan. Global operating conditions continue to toughen, particularly following the recent introduction of 25% import tariffs in the US, while competition from Chinese automakers continues to rise. For the next fiscal year (FY2026), which starts in April 2026, Nissan said it is aiming for positive operating profitability and free cash flow, while cutting fixed and variable costs by JPY 500 billion compared with FY2024. Nissan confirmed that it will cut an additional 11,000 jobs at its global operations by FY2027, in addition to the 9,000 redundancies announced in late 2024. This will result in a 15% reduction in its global workforce, while the number of vehicle assembly plants will be reduced from 17 to 10 in the next three years. The automaker described Re:Nissan as a 'recovery plan that implements decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes. With a fresh focus under its new management, Nissan is reassessing its targets and has conducted a comprehensive review of key initiatives, introducing further measures to ensure a strong recovery.' The company's newly-appointed president and CEO, Ivan Espinosa, explained further: "In the face of the challenging FY2024 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. As a new management team, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlining what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026." Details of the Re:Nissan recovery plan targets Reduce variable costs by JPY250 billion by FY2026, by accelerating engineering and cost efficiencies while implementing a rigorous governance model. The company has established a dedicated 'cross-functional transformation' office staffed by around 300 people to make cost-cutting decisions and will 'mobilize' 3,000 staff to focus on cost reduction initiatives. Reduce fixed costs by JPY 250 billion by FY2026. Reduce the number of vehicle production plants globally from 17 to 10 by FY2027 and streamline powertrain manufacturing operations. Accelerate job reformation, work shift adjustments, and capital expenditure reductions, including the cancellation of the planned lithium iron phosphate (LFP) battery plant in Kyushu, Japan. Reduce global workforce by20,000 employees between FY2024 and FY2027, including the 9,000 redundancies announced at the end of 2024, affecting direct and indirect roles and contractual roles in manufacturing and R&D. Reductions in SG&A staff will also be made as a result of shared services and marketing efficiencies. Reduce R&D costsby revamping development processes to reduce engineering costs, complexity, speed up development, rationalize global R&D facilities and allocate work to competitive locations. Reduce overall hourly wage costs by 20%. Reduce components complexity by 70% and cut the number of vehicle platforms from 13 to 7 by FY2035 through platform integration and optimization. Shorten new product development lead times for the first model of a new platform to 37 months, and subsequent models to 30 months. Models being developed under this process include the all-new Nissan Skyline, a new global C SUV and the all-new Infiniti compact SUV. Redefine market and product strategies to better match local customer needs and tailor product strategy to align with its updated market approach. Reshape product strategies to become more market-focused and more brand-oriented, with a commitment to innovation. Strengthening collaboration with alliance partners, Renault and Mitsubishi Motors, to deliver models that complement its portfolio and meet unique market needs. Several new joint projects are already underway in North America, Asia and Europe. Continue collaboration with Honda in vehicle intelligence and electrification. "Nissan targets return to profitability in FY2026" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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Yahoo
12-05-2025
- Automotive
- Yahoo
Mitsubishi, Nissan step up collaboration in US
Mitsubishi Motors Corporation last week revealed it is exploring opportunities to jointly produce SUVs in the US with Nissan Motor Company, in response to the recent hike in import duties by the US administration. Mitsubishi Motors sold a total of 31,637 vehicles in the US in the first quarter of 2025, an 11% increase on the same period last year, as the company front-loaded shipments ahead of the tariff hikes. Two-thirds of its sales comprised the Outlander SUV, with the Eclipse Sport and Mirage models combined accounting for the remainder of its sales. The company does not have vehicle manufacturing facilities of its own in North America and therefore relies on imports to supply the US market. Mitsubishi Motor's president, Takao Kato, stated at a recent press conference that local production 'is essential' to selling vehicles in the US. Last week the company announced it had agreed to sell a rebadged version of the next generation Nissan Leaf battery electric vehicle (BEV) in the US, starting in the second half of 2026, and also to rebadge the Nissan Rogue SUV later this year. It is clear that the two Alliance partners plan to collaborate closely in the US to lessen the impact of the recent US import tariff hikes. The two companies are considering jointly investing in an existing Nissan plant in the US to produce a new SUV model, although details of the investment amount, production date and plant were not disclosed. In Japan, Mitsubishi and Nissan are jointly developing a new range of ICE and battery-powered Kei cars (mini-cars), while Mitsubishi has also agreed to provide its Thai-made pickup truck to Nissan and source a van from Nissan in the Philippines. Other partnerships recently announced by Mitsubishi include sourcing a battery-powered BEV model from Yulon Motors in Taiwan, based on Foxtron's MIH open platform, for sale locally and also in Australia and New Zealand, and sourcing an SUV and a BEV model from Alliance partner Renault for sale in Europe. Mitsubishi last week said it expects its operating profit to drop by 28% to JPY 100 billion in the current fiscal year, ending on 31 March 2025, largely due to the US import tariffs. "Mitsubishi, Nissan step up collaboration in US" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
