Key Facts
• Nissan reported a $1.157 billion net loss for Q2 FY2025, reversing a $285 million profit year-on-year.
• Revenue fell 9.7% to $20.3 billion, with operating losses reaching $5.5 billion.
• Global vehicle sales dropped 10.1% to approximately 700,000 units.
• U.S. tariffs on automobiles, initially raised to 25%, were reduced to 15% after negotiations.
• Tariff impact on Nissan’s annual revenue is expected to ease from $3.1 billion to $2.1 billion.
• CEO Ivan Espinosa welcomed the tariff reduction but warned of continued challenges, hinting at potential price increases.
• Nissan’s FY2025 H1 revenue forecast predicts an 8.1% decline to $41.2 billion, with $12.9 billion in operating losses.
• FY2026 net profit projections remain undecided due to ongoing uncertainties.
• Nissan plans to cut 20,000 jobs globally, up from 9,000, and close seven vehicle plants, including two in Japan.
• The Oppama and Shonan factories in Kanagawa Prefecture are slated for closure as part of restructuring efforts.
Summary
Nissan Motor Co. reported a $1.157 billion net loss for Q2 FY2025, driven by global sales declines and U.S. tariffs. Revenue dropped 9.7%, with operating losses reaching $5.5 billion. Vehicle sales fell 10.1% globally, with significant declines in China, North America, Japan, and Europe. While U.S. tariffs on automobiles were reduced from 25% to 15%, CEO Ivan Espinosa noted the continued financial strain, suggesting potential price adjustments. Nissan’s FY2025 H1 revenue is forecasted to decline 8.1%, with $12.9 billion in operating losses. The company is intensifying restructuring efforts, including cutting 20,000 jobs and closing seven plants globally, with Japan’s Oppama and Shonan factories among the closures. Despite these measures, FY2026 profit projections remain uncertain.
