Nissan hit by $535-million quarterly loss due to U.S. tariffs, restructuring and lower sales
Japan's third-largest auto maker is in the midst of a sweeping turnaround plan and has pledged to close some seven plants globally and lay off 15% of its workforce.
Nissan reported an operating loss of 79.1 billion yen ($535 million) for the quarter from April to June, narrower than an average estimate for a loss of 123.9 billion yen in an LSEG survey of five analysts.
The result compared to a company forecast for a loss of 200 billion yen when it reported results for the previous financial year in May.
'We're still in the early stages of our recovery,' CEO Ivan Espinosa told a news conference after the results release, adding that the auto maker was making progress in cutting costs.
In a statement, Nissan said it would stop output at its Civac plant in Mexico by March 2026 in its global restructuring plan, integrating vehicle production from that plant to its Aguascalientes complex during the current financial year.
The news comes after Nissan said this month it would stop producing cars at two domestic sites, namely its Oppama plant, by March 2028, and Nissan Shatai's Shonan factory, by March 2027.
The auto maker first started operations at the Civac plant in 1966 in its initial expansion outside Japan. It has turned out more than 6.5 million vehicles so far, Nissan said.
The automaker's drastic restructuring effort aims to slash costs and restore profitability and performance in key markets such as the United States and China.
The plan includes slashing global production capacity to 2.5 million vehicles from 3.5 million and manufacturing sites to 10 from 17.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Calgary Herald
22 minutes ago
- Calgary Herald
Impact of latest round of tariffs on Calgary dims economic outlook say experts
The latest round of tariffs imposed by the U.S. won't affect Calgarians and their businesses, but the resulting volatility has dimmed their economic outlook as further investments are paused as a result of the most recednt tariff announcement, experts say. Article content U.S. President Donald Trump once again slapped additional tariffs on many countries, including Canada, whose exports, barring products under the U.S.-Mexico-Canada Agreement, will now be taxed at 35 per cent instead of 25 per cent. The levy and the exemption do not include sector-specific tariffs that were imposed in the spring. Article content Article content Article content Trump justified the import duty, which will be passed down to the U.S. consumer, by citing the flow of illegal fentanyl from Canada into the country, a claim that has been debunked by official reports. Article content Article content The trade agreement comprises most industries, and some companies that aren't included have voluntarily decided otherwise, said Mike Holden, chief economist at the Business Council of Alberta. Article content 'There's a bit of an administrative burden for companies to register as being compliant under the agreement,' Holden said. 'And some haven't usually been a part of it because the tariff that had previously been in place was around two per cent.' Article content As a result, he added, 'It's not going to affect too many companies in the Calgary area.' Approximately 85 per cent of Canadian exports qualify under the agreement, according to RBC. The real number is difficult to pin down. Article content Article content However, the announcement deals another blow to companies that are yearning for stability in the trade relations between the two countries. Article content 'It's hard to believe that it's only been about six months since all this has happened. I mean, it has been chaos,' Holden said. Article content By 'all this,' Holden refers to the saga of geopolitical uncertainty ushered in by Trump's return to the White House. Article content It began with a threat in February to impose a 25 per cent tariffs on all Canadian exports entering the U.S. with a reduced levy of 10 per cent on energy products. Trump reversed his plan a day after imposing them on March 4, citing Canada's renewed promises, including investing in more security at the border. Article content That, however, didn't prevent Trump from implementing tariffs on specific sectors, including steel, aluminum and auto-imports, industries that are linked to several others. For the next several months, the U.S. president kept waffling on his pledges to impose duties, only to reverse course and then reimplement them.
Globe and Mail
22 minutes ago
- Globe and Mail
Immunome Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Immunome, Inc. (the 'Company') (Nasdaq: IMNM), a biotechnology company focused on developing first-in-class and best-in-class targeted cancer therapies, announced today that on Aug. 1, 2025, the Compensation Committee of the Company's Board of Directors (the 'Compensation Committee') granted inducement awards consisting of non-statutory stock options to purchase an aggregate of 39,000 shares of common stock to 5 new employees under the Company's 2024 Inducement Plan. The Compensation Committee approved the stock options as an inducement material to such employees' employment in accordance with Nasdaq Listing Rule 5635(c)(4). Each stock option has an exercise price per share equal to $10.59 per share, the Company's closing sales price on Aug. 1, 2025, and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employees' continued service relationship with the Company through the applicable vesting dates. The stock options are subject to the terms and conditions of the Company's 2024 Inducement Plan and the terms and conditions of an applicable stock option agreement covering the grant. About Immunome, Inc. Immunome is a clinical-stage targeted oncology company committed to developing first-in-class and best-in-class targeted therapies designed to improve outcomes for cancer patients. We are advancing an innovative portfolio of therapeutics, drawing on leadership that previously played key roles in the design, development, and commercialization of cutting-edge targeted cancer therapies, including antibody-drug conjugate therapies (ADCs). Our most advanced pipeline programs are varegacestat (formerly AL102), a gamma secretase inhibitor which is currently in a Phase 3 trial for treatment of desmoid tumors; IM-1021, a ROR1-targeted ADC which is currently in a Phase 1 trial; and IM-3050, a FAP-targeted radioligand, which recently received IND clearance. Our pipeline also includes IM-1617, IM-1335, and IM-1340, all of which are preclinical ADCs pursuing undisclosed targets with expression in multiple solid tumors. For more information, visit
CTV News
22 minutes ago
- CTV News
U.S. Fed governor to resign early at critical time for central bank
U.S. Federal Reserve governor Adriana Kugler is resigning from her position, the central bank said Friday, opening a vacancy that U.S. President Donald Trump can fill as he presses his campaign to drop interest rates. Kugler, who was nominated by former U.S. president Joe Biden in 2023, did not give a reason for stepping down from the Fed's board. Her term was due to end in January 2026, but her departure -- effective August 8 -- gives Trump the chance to appoint someone new to the Fed sooner than anticipated, shaping its leadership. Trump said he was 'very happy' about the upcoming vacancy, after Kugler submitted her letter of resignation to him. The personnel shift comes as the Fed faces intensifying pressure under Trump, who has repeatedly criticized the central bank's chief Jerome Powell for not lowering interest rates sooner. Trump has also suggested that what he says is an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, before backing off the threat. Powell's term as Fed chair ends in May 2026. Kugler did not attend the Fed's two-day policy meeting this week due to a personal matter, and did not vote on its decision. In a mid-July speech, she made the case for holding rates at the current level for some time, citing inflationary pressures and relatively low unemployment levels. 'It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,' Kugler wrote in her resignation letter. Fed policymakers have approached further rate cuts with caution -- since their last reduction in December -- as they assess the impact of Trump's wide-ranging and fluctuating tariffs on inflation. They expect to have a better gauge of the duties' effects after data from the summer months, given that tariffs take time to filter through the economy. But Trump has urged for interest rate reductions, and for the benchmark lending rate to be lowered by as much as three percentage points. Early Friday, Trump touted the fact that two Fed governors voted against the central bank's Wednesday decision to keep rates unchanged again. He said on social media: 'STRONG DISSENTS ON FED BOARD. IT WILL ONLY GET STRONGER!' He also called Powell a 'stubborn moron' and said the Fed's board should 'assume control' if Powell continued to support holding rates steady. Kugler is expected to return to Georgetown University as a professor this year, the Fed said Friday.
