Nissan loses A$7.1 billion, will cut another 11,000 jobs, close seven factories
In a press conference new Nissan CEO Ivan Espinosa called the awful numbers a 'wake up call', and the global environment 'volatile and unpredictacble ', which makes 'planning and investment increasingly challenging'.
In an earlier statement he said the automaker 'must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume'.
As it will be producing and selling few vehicles, Nissan will reduce its factory count from 17 to 10 by March 2028. It did not announce which factories will be getting the chop, but earlier reports indicate at least one will be in China.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Supplied Credit: CarExpert
It will also reduce its workforce by 20,000 people — around 15 per cent of its current 133,500 employees — by March 2028, which includes the 9000 job losses, mainly in manufacturing, Nissan announced six months ago. In addition to permanent and contract factory staff, there will headcount reductions in both research and development (R&D), and selling, general and administrative (SG&A).
Some R&D sites will be closed as Nissan tries reduce the department's average cost per hour by 20 per cent, while also reducing development time for new models to between 30 and 37 months. Longer term the automaker will reduce its number of platforms from 13 to 7, and cut parts complexity by 70 per cent by March 2036.
In addition to all this, the company has setup a cost-cutting 'transformation office' with an initial staff of 300 experts who have been 'empowered to make cost decisions'. Nissan N7 Credit: CarExpert
Development for post-March 2027 products and advanced activities have been temporarily paused to free up a further 3000 people to find savings. The company will also rework its supply chain, reducing the number of suppliers and ordering greater quantities from the ones it continues to work with.
The Yokohama-based automaker is hoping its latest turnaround plan, dubbed Re:Nissan, will help it return to profitability by the financial year ending March 2027.
Citing the constantly changing tariff situation in the US under President Trump, Nissan said it was unable to provide a forecast for income, profit, or free cash flow for the next financial year ending March 2026. Jeremie Papin, Nissan's chief financial officer, says the company's 'challenging situation' will continue into the current financial year. Third-generation Leaf Credit: CarExpert
Nissan has dropped some further product details, revealing there will be a new Skyline and an 'expansion of model coverage' for Japan.
In the US it will focus introducing hybrid models, and revitalising the Infiniti range with models based on Nissan cars, including a small crossover, likely based on the X-Trail/Rogue. For Europe the company's core models will be the Juke and Qashqai, with other locally produced cars coming from Renault.
Large SUVs will be Nissan's bread and butter in the Middle East, while Mexico continues to key manufacturing base for the firm. Mexico is Nissan's bright spot, with the brand continuing to be number one there thanks to a broad array of cars, including low cost vehicles, such as the March (a K13 Micra which began life in 2010), and V-Drive (an N17 Almera from 2011). Nissan Frontier Pro Credit: CarExpert
Perhaps most importantly Nissan will concentrate on developing plug-in hybrid and electric vehicles in China with its joint venture partner Dongfeng. Some of these models will be sold in Europe and the Middle East, hinting that the latter will likely receive the new Frontier Pro plug-in hybrid ute.
Sadly there's no new details about Nissan's plans for Australia, with the company simply that there will be a 'customised approach to other markets'.
In March the company revealed a slew of new models, and confirmed it will launch five models in Australia by March 2027, including the Ariya electric crossover, the Mitsubishi Triton-based Navara, the next-generation Patrol, Leaf crossover, and Qashqai e-Power hybrid.
MORE: Everything Nissan
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