INTERNATIONAL
Nissan takes a US$535 million quarterly hit, as tariffs bite
Nissan narrows quarterly loss as it pushes ahead with a global restructuring plan to cut costs and restore profitability. - REUTERS
YOKOHAMA, Japan: Embattled automaker Nissan reported a US$535-million quarterly loss on Wednesday (July 30), hit by U.S. tariffs, restructuring and lower sales volumes and said it would stop production at a plant in Mexico.
AI Brief
Japan's third-largest automaker 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 (US$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.
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.
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AI Brief
- Nissan reported a smaller-than-expected loss of 79.1 billion, beating forecasts amid ongoing restructuring efforts.
- The turnaround plan includes closing 7 plants and cutting 15% of its workforce to reduce costs and improve performance.
- Production will be scaled down from 3.5 million to 2.5 million vehicles globally, focusing on key markets like the US and China.
Japan's third-largest automaker 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 (US$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.
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.