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The Mainichi
18 hours ago
- Automotive
- The Mainichi
Nissan logs 115.76 bil. yen net loss in April-June on US tariffs
TOKYO (Kyodo) -- Nissan Motor Co. said Wednesday it posted a net loss of 115.76 billion yen ($780 million) for the April-June quarter due to U.S. auto tariffs and expects to remain unprofitable in the first half, as U.S. trade policy adds pressure on the beleaguered carmaker to speed up restructuring. The loss in the first fiscal quarter is a sharp reversal from a profit of 28.56 billion yen in the same quarter last year. Nissan expects an operating loss of 180 billion yen for the six months through September. It did not issue a forecast for the full business year through March 2026, citing uncertainties over tariffs. President Donald Trump raised auto tariffs by 25 percentage points to 27.5 percent in April, but the United States and Japan agreed last week to reduce the rate to 15 percent for Japanese autos. "There is a change, but it's still not clear to us (what) some of the conditions and when the change for the tariff from Japan to the U.S. will come into place," Nissan CEO Ivan Espinosa said at a press conference. "We welcome the improvement, but 15 percent is still a challenging number, which is why (we) need to costs and reducing our exposure to tariffs as much as we can," he added. The carmaker logged an operating loss of 79.12 billion yen in the three-month period, compared with 995 million in profit a year earlier, as sales fell 9.7 percent to 2.71 trillion yen. Tariffs accounted for the bulk of the operating loss at 68.7 billion yen, with the automaker also factoring in the weakening of the U.S. and Canadian dollars. Meanwhile, its global vehicle sales for the first fiscal quarter fell 10.1 percent from a year earlier to 707,000 units, with Nissan citing growing competition in China and waning confidence in the brand among Japanese customers. The automaker is in the midst of overhaul efforts to restore profitability by cutting back its global workforce and production capacity. It has announced plans to reduce global production capacity from 3.5 million units, excluding China, to 2.5 million units by cutting the number of production sites in Japan and abroad from 17 to 10 by fiscal 2027. Nissan said earlier in the day that it would end production at its Cuernavaca plant in Mexico by the end of March 2026. Earlier this month, it announced that it will cease vehicle production at its flagship Oppama plant in Kanagawa Prefecture, near Tokyo, by the end of fiscal 2027, with operations to be transferred to its factory in southwestern Japan. "We are trying to keep a strategic geographical coverage while we resize the system for something that is more manageable for the level of revenue we are commanding," Espinosa said. He declined to comment on reports that the automaker planned to work with Honda Motor Co. to share common basic software, but confirmed they were in discussions on several joint projects. The two companies announced in December plans to begin merger talks under a holding company, aiming to share the financial burden of developing electric vehicles and software to better compete with global rivals. But the talks broke down less than two months later.
Mint
18 hours ago
- Automotive
- Mint
Nissan racks up red ink, but Japanese automaker promises return to profit later this year
Tokyo, Japanese automaker Nissan sank into a 115.8 billion yen loss for April-June, but promised Wednesday to return to profitability later this year. Nissan Motor Corp. did not give a full-year net profit forecast. It recorded a 28.6 billion yen profit during the April-June quarter last year. Quarterly sales for the current fiscal year slipped nearly 10 per cent to 2.7 trillion yen . The maker of the Leaf electric car and Infiniti luxury models said the results were better than expected. But it faces 'headwinds,' including declining sales, unfavourable exchange rates and President Donald Trump's tariffs. Ivan Espinosa, who took the helm at Nissan in April, replacing Makoto Uchida, said the company's recovery plan remained urgent. Uchida stepped down to take responsibility for the dismal fiscal results. Espinosa noted the initial steps of the company's revival plan were kicking in, including cutting costs, realigning products, reshaping a market strategy and strengthening partnerships. 'We must now go further and faster to achieve profitability. Everyone at Nissan is united in delivering a recovery that will ensure a sustainable and profitable future,' he said. Nissan, based in the port city of Yokohama, has been struggling but is promising a turnaround under Espinosa, a Mexican with two decades of experience at Nissan. The company said some of its models, such as the N7 in China and the Magnite in Mexico, have been selling well recently. Nissan recently ditched talks with Japanese rival Honda Motor Co. to set up a joint holding company. They said they will continue to cooperate on technology development. Nissan is closing its flagship factory in Oppama, Japan, outside Tokyo, by the end of the 2027 fiscal year, moving production there to another plant in southwestern Japan. Nissan is also slashing 15 per cent of its global workforce, or about 20,000 employees. That includes a 9,000 headcount reduction announced late last year. SKS GRS GRS This article was generated from an automated news agency feed without modifications to text.
Fast Company
2 days ago
- Business
- Fast Company
Global stocks mostly rise as U.S. continues trade talks with China
Global shares were mixed Tuesday at the outset of a second day of trade talks between Chinese and U.S. officials. France's CAC 40 jumped 1.1% in early trading to 7,887.57, while the German DAX rose 1.0% to 24,191.38. Britain's FTSE 100 added 0.3% to 24,191.38. The future for the S&P 500 was up 0.2%. The future for the Dow Jones Industrial Average edged 0.1% higher. Japan's benchmark Nikkei 225 fell 0.8% to 40,674.55 on broad selling of major companies including automakers and big banks. Toyota Motor Corp. dipped 2.3% and Honda Motor Co. fell 2.1%. Sumitomo Mitsui Financial Group finished 1.8% lower, while Mitsubishi UFJ Financial Group stock dipped 1.6%. Hong Kong's Hang Seng dropped 0.2% to 25,524.45, while the Shanghai Composite gained 0.3% to 3,609.71. Analysts said investors were watching for the latest from U.S. President Donald Trump and U.S. trade talks with China in Stockholm. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting in the Swedish capital. 'Aside from addressing economic imbalances, tariffs are also now well entrenched in the geo-political arena,' Tan Boon Heng of the Asia & Oceania Treasury Department at Mizuho Bank said in a commentary. Australia's S&P/ASX 200 edged 0.1% higher to 8,704.60. South Korea's Kospi gained 0.7% to 3,230.57. Samsung Electronics edged 0.3% higher after jumping nearly 7% on Monday on news that it signed a deal with Tesla to provide computer chips for its electric vehicles. This week will bring a flurry of potentially market-moving data releases, corporate earnings and an interest rate decision by the Federal Reserve. The widespread expectation on Wall Street is that Fed officials will wait until September to resume cutting interest rates, though a couple of Trump's appointees could dissent in the vote. The Fed has been on hold with interest rates this year since cutting them several times at the end of 2024. On Monday, the S&P 500 was nearly flat, edging up by less than 0.1% to 6,389.77 and setting an all-time high for a sixth straight day. The Dow dipped 0.1% to 44,837.56, while the Nasdaq composite added 0.3% to its own record, closing at 21,178.58. Hundreds of U.S. companies are lined up to report how much profit they made during the spring, with nearly a third of the businesses in the S&P 500 index scheduled to deliver updates. Companies are broadly under pressure to deliver solid growth in profits following big jumps in their stock prices the last few months. Much of the gain was due to hopes that Trump would walk back some of his stiff proposed tariffs, and critics say the U.S. stock market looks expensive unless companies will produce bigger profits. In energy trading, benchmark U.S. crude jumped 50 cents to $67.21 a barrel. Brent crude, the international standard, gained 47 cents to $69.79 a barrel. In currency trading, the U.S. dollar fell to 148.53 Japanese yen from 148.56 yen. The euro cost $1.1567, down from $1.1589.
Yomiuri Shimbun
18-07-2025
- Business
- Yomiuri Shimbun
Japanese Businesses Expanding Space-Related Operations; Government Making Plans to Increase Public Support
An increasing number of companies in Japan are making efforts to strengthen their operations related to outer space. This striking trend includes automakers, banks and other businesses with no prior connections to space. Startups are also joining the field one after another. However, competition is increasingly fierce, and for now the United States and China are the frontrunners. Japanese companies in the field will not flourish without cooperation between the public and private sectors. New possibilities In June, Honda Motor Co. became the first private company in Japan to successfully launch and land a reusable small rocket. To do this, the company used technology it had cultivated for projects such as developing self-driving vehicles. Honda R&D Co., a subsidiary of the automaker, was in charge of research and development of the reusable rocket. In an address given in Tokyo on July 8, Honda R&D President Keiji Otsu said emphatically, 'Space is a place of new possibilities.' Major companies in such fields as telecommunications and financial services are enhancing their space-related operations, and a growing number of startups are entering the field. According to research by the Spacetide Foundation, a general incorporated entity for promotion of space development, the number of startups in the space development field in 2025 was 109, an increase of about 40% from three years ago. ¥260 trillion market With space being used more and more in fields such as national security and telecommunications, related industries are expected to grow rapidly. The global market size for space businesses is predicted to exceed ¥260 trillion in 2035, about triple what it was in 2023. According to the Cabinet Office, the number of rocket launches conducted by the United States in 2024 was 153, while China had 66, putting those two countries at the head of the pack for use of space-related technology. Japan conducted only five launches last year. Many of the American rocket launches were for commercial purposes, as more than half were made by Elon Musk's company SpaceX, which uses reusable rockets to minimize costs. Cost and speed vital One issue that Japanese companies face is the high cost of conducting rocket launches. Mitsubishi Heavy Industries Ltd. aims to bring the cost of launching a rocket down to about ¥5 billion — half what it has been up to now — with its new primary rocket model, the H3, which it developed in cooperation with the Japan Aerospace Exploration Agency. The government's Basic Policy on Economic and Fiscal Management and Reform, approved by the Cabinet in June, stipulates that the nation's space development policies should be enhanced. It sets a goal of boosting the size of the domestic market to ¥8 trillion in the first half of the 2030s, double what it was in 2020. A senior official of an economy-related government entity pointed out that victory in space development goes to whoever is fastest. Thus whether Japan wins or loses in this field will come down to the speed at which projects can be commercialized. Spacetide's Representative Director Masayasu Ishida said, 'Many countries all over the world, not just the major ones, are trying to cultivate space-related industries. It is essential also for Japan to stimulate demand and acquire human resources, technologies and investment.'
Yahoo
15-07-2025
- Automotive
- Yahoo
Honda (HMC) Opens New Software Studio in Osaka
Honda Motor Co., Ltd. (NYSE:HMC) is one of the 13 Best Japanese Stocks to Buy According to Hedge Funds. On June 26, Honda Motor Co., Ltd. (NYSE:HMC) reported that it has opened a new software development operation called Honda Software Studio Osaka. This studio is located in the Grand Green Osaka, a multifunctional commercial complex in the Umeda area in Osaka, Japan. A battery powered electric vehicle charging in a city storefront. Honda Motor Co., Ltd. (NYSE:HMC) is focusing on using intelligent technologies to improve its products, especially electrified vehicles. Previously, the company announced plans to invest about JPY 2 trillion in software-related research and development over 10 years through the fiscal year ending March 31, 2031. To support this goal, Honda Motor Co., Ltd. (NYSE:HMC) is looking to hire skilled software talent and improve its work environment and development capabilities. The company has been growing its network of software development operations. Starting with Osaka in October 2023, Honda Motor Co., Ltd. (NYSE:HMC) has expanded to Omiya, Shinagawa, Nagoya, and Fukuoka. The new Honda Software Studio Osaka began operations in April 2025. Looking ahead, the company plans to open another software development operation in Tokyo in early 2026. Honda Motor Co., Ltd. (NYSE:HMC), or simply Honda, is a Japanese multinational automotive manufacturer. The company's main products are automobiles, motorcycles, and power products. While we acknowledge the potential of HMC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
