TOKYO (AP) – Japanese automaker Nissan Motor Corp. has reported a significant increase in its losses for the quarter ending December compared to the same period last year. The company, headquartered in Yokohama, disclosed a loss of 28.3 billion yen (approximately $185 million) for the October-December quarter, which is nearly double the 14 billion yen loss reported in the same quarter the previous year.
Nissan's quarterly sales experienced a decline of 6%, dropping to nearly 3 trillion yen (about $19.6 billion) from 3.2 trillion yen the year prior. Chief Executive Ivan Espinosa addressed reporters, stating, “Unfortunately, when you do restructuring, there are costs that are incurred. In a way, it is expected.” He recognized that while Nissan is on a promising path, the automaker faces challenges including tariffs imposed by former President Donald Trump and other sales pressures.
The company, known for producing the Leaf electric car and Infiniti luxury models, aims to achieve an operating profit by the conclusion of fiscal year 2026. However, Nissan is forecasting an operating loss for the current fiscal year and anticipates a substantial net loss of 650 billion yen ($4.2 billion) for the year ending in March.
With a career spanning two decades at Nissan, Espinosa has been seeking to implement a turnaround strategy for the struggling automaker since taking the position last year. As part of its restructuring efforts, Nissan has made significant cuts, including job reductions and the sale of its headquarters building. Additionally, the company is set to close its flagship factory in Oppama, Japan, as it continues to streamline global production.
Analysts suggest that the recent waning popularity of electric vehicles could pose challenges for automakers like Nissan, which has been bullish on EV investments. In response to these concerns, Espinosa emphasized that Nissan must innovate to captivate consumers with electric vehicles, particularly addressing the need for new types of batteries. However, he expressed optimism regarding the latest Leaf model.
Nissan's stock has seen a decline over the past year, yet it experienced a slight uptick of 0.5% on Thursday following the release of this financial news. The company maintains partnerships with French automaker Renault and the domestic car manufacturer Mitsubishi Motors Corp., which play a crucial role in its strategic direction moving forward.
Overall, Nissan continues to navigate a turbulent financial landscape while striving for recovery through aggressive restructuring measures and a renewed focus on electric vehicle technology.
