The Japanese car industry Nissan announced that he plans to close seven factories and cut 20,000 jobs – 15% of its worldwide workforce – after recording its biggest annual losses since the French automaker Renault saved the company from a short bankruptcy a quarter of a century.
Nissan decided not to issue operating profits for the financial year expiring in March 2026. The automotive industry announced net damage of 670.9 billion yen ($ 4.5 billion or 4.1 billion euros) In the year ended in March. Nissan also accelerates its restructuring. The car industry will close the 7 factories Until the financial year 2027, with the annual capacity to drop to 2.5 million units of 3.5 million last year.
It was also confirmed that will cut 20,000 jobsincluding the loss of 9,000 jobs previously announced. Measures are aimed at Reduction of costs by 500 billion yenthe company said.
The problematic Japanese automaker has already announced plans to replace most of its top executives – including the appointment of a new CEO – after failing to join Honda Motor Co. Earlier this year, leaving it in urgent need for another lifeline.
The reality is clear, “said CEO Ivan Espinosa in his first update after the profits since he took over in April. “Nissan should prioritize self -improvement with a greater urgent need and speed.” Sweeping changes mark a significant removal from previous Managing Director Makoto Uchida, who was criticized that he was not aggressive enough with his plan to cut 9,000 jobs and reduce production by 20%.
Nissan had indicated wider plans for reducing production, announcing last week that it was leaving plans to build a battery factory in Fukukoka to focus on its own recovery. Even with the deeper cuts, Nissan is facing a difficult battle for finding a Savior, with the collapse of Honda’s links to complicate her search.
Hon Hai Precision Industry had emerged as a dominant company, with President Young Liu stating in February that his company had approached Nissan and Honda for possible cooperation when the two companies participated in talks to unite.
Taiwanese iPhone manufacturer, known as Foxconnshe has clearly expressed her desire to assemble electric vehicles for Japanese car manufacturers and earlier this month signed an agreement with Mitsubishi Motors Corp. to do just that.
Meantime, Nissan restructuring efforts are in danger of being derailed by US duties in imported cars and car spare parts.
The automaker said it expects to see a impact of $ 450 billion from policies, which is included in its prediction of $ 200 billion in operation in the first quarter. Exports from Mexico and Japan represent nearly 45% of Nissan’s sales in the USsaid Financial Manager Jeremie Papin. The duties will affect 300,000 units in Mexico exports and 120,000 points from Japan, he said.
Trump’s ever-changing commercial policies are already affecting the world industry of the automotive industry, with some manufacturers, such as Stelantis and Mercedes-Benz Group, withdrawing their predictions for their profits and others to warn of significant blows to the end result. General Motors reduced forecasts for its profits due to exposure of up to $ 5 billion from car duties, while Ford Motor is expecting $ 1.5 billion in results.
Japan’s leading automakers have joined the choir that sounds the alarm on the impact of Trump’s ever -changing trade policies. Toyota Motor said it estimates a $ 180 billion blow to operating profits in just two months and Mazda Motor Co. He held the annual forecasts, and warned of an impact of 10 billion yen only for April.
Separately, Renault, which holds about 36% of Nissan’s shares, said it was a blow to 2.2 billion euros ($ 2.4 billion) in net profits of the first quarter due to Japanese car industry’s recovery efforts.
Espinosa said Nissan is seeking to enhance the Its collaboration with Renault in Europe, India and Latin America and to work with Mitsubishi in the US For the development of pickup trucks and electric vehicles. Can also pursue to work with Honda for the UShe said.