TOKYO (AP) — Japanese automaker Nissan announced on Wednesday that it has reduced its losses for the fiscal year ending in March, though the company still remains in the red due to a combination of challenges, including U.S. tariffs, inflation, and increased competition in the automotive market.
Nissan Motor Corp., headquartered in Yokohama, reported a net loss of 533 billion yen (approximately $3.4 billion). This loss is a decrease from the previous fiscal year, where the company recorded a more severe loss of 670.9 billion yen.
The annual sales for Nissan declined by 5%, totaling 12 trillion yen (around $76 billion). Despite the ongoing financial struggles, Chief Executive Ivan Espinosa expressed optimism, stating that the company is seeing “clear signs” of a turnaround. He emphasized that Nissan has moved past its recovery phase and is now entering a phase of growth, planning to build on this momentum through disciplined cost management and accelerated product execution to drive both sales and profitability.
In terms of quarterly performance, Nissan reported a net loss of 282.9 billion yen ($1.8 billion) during the January-March period of the fiscal year. This figure represents a significant improvement compared to the 676 billion yen loss recorded during the same period a year prior. However, quarterly sales still saw a near 2% decline, amounting to 3.43 trillion yen ($22 billion).
Nissan is actively engaged in cost-cutting measures and other initiatives aimed at boosting profitability. The company also stated that it achieved a better-than-expected operating profit for the fiscal year and anticipates improved results in the current year due to upcoming model launches.
For the fiscal year that ended on March 31, Nissan sold 3.15 million vehicles globally, including notable models such as the Altima sedan, Pathfinder SUV, Leaf electric vehicle, and Infiniti luxury models.
Despite the positive outlook communicated by executives regarding Nissan’s revival plan, the automaker's financial situation remains among the worst it has experienced in years. As part of its restructuring efforts, Nissan is cutting thousands of jobs and has gone so far as to sell its headquarters building to address its fiscal challenges.
Nissan forecasts a return to profitability for the fiscal year ending in March 2027, projecting a modest profit of 20 billion yen ($127 million). The entire automotive sector in Japan is facing intense competition, particularly from newer Chinese manufacturers who have started to dominate the Asian markets.
In recent years, discussions took place regarding a potential merger of certain operations with rival Japanese automaker Honda Motor Co., which has also encountered its own set of struggles. However, those discussions ultimately faltered, though there may still be opportunities for limited cooperative partnerships moving forward.
Nissan's stock has been notoriously volatile over the past year, but it managed to finish the day 4% higher following the recent announcement.
