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Nissan Motor Corp. said it will reduce the number of its auto
plants to 10 from 17, under what it called its recovery plan to
carry out “decisive and bold actions to enhance performance and
create a leaner, more resilient business that adapts quickly to
market changes.” It did not say which plants were being closed
but confirmed the closures will include factories in Japan.
“We have a mountain to climb,” its Chief Executive Ivan Espinosa
told reporters, stressing the task will not be easy, requiring
discipline and team work. “Starting today, we build the future
for Nissan.”
The job cuts to be done by March 2028 include the 9,000 head
count reduction announced last year. Nissan also previously
announced the scrapping of plans to build a battery plant in
Japan.
Espinosa, who took the helm earlier this year, said the latest
plans followed a careful review of operations, to align
production with demand, including coming up with market and
product strategies. Nissan will also leverage its partnerships
such as the one with Renault SA of France in Europe and Dongfeng
Nissan in China, he said.
The Yokohama-based automaker said U.S. President Donald Trump’s
tariffs on auto imports also hurt its results.
Nissan racked up a loss of 670.9 billion yen ($4.5 billion) for
the fiscal year through March, down from a 426.6 billion yen
profit recorded the previous fiscal year.
For the latest quarter through March, Nissan recorded red ink
totaling 676 billion yen ($4.6 billion). It also said its
recovery plan includes trying to reduce costs by 500 billion yen
($3.4 billion) compared to current costs.
“As new management, we are taking a prudent approach to reassess
our targets and actively seek every possible opportunity to
implement and ensure a robust recovery,” Espinosa said.
"All employees are committed to working together as a team to
implement this plan, with the goal of returning to profitability
by fiscal year 2026,” he said.
But Nissan Chief Financial Officer Jeremie Papin acknowledged
the automaker faces serious challenges. Nissan did not give a
profit projection for the fiscal year through March 2026, citing
uncertainties.
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