Nissan’s latest profits warning is the result of a more costly turnaround plan than expected. The Japanese automaker now expects to lose up to £4bn this year, almost 10 times its previous forecast. Nissan has been struggling with leadership turmoil and falling sales over several years.
To address these issues, the company made significant cost cuts but the automotive industry’s uncertainty due to Donald Trump’s tariffs adds pressure. Nissan’s sales are expected to drop by 33% to 3.35m units this year, mainly due to changes in the competitive environment.
New CEO Ivan Espinosa blamed a £2.6bn asset impairment and restructuring costs for the significant net loss, despite having substantial financial resources and a strong product pipeline. Nissan plans to cut 9,000 jobs as it shifts focus towards electric models.
The US tariffs of 25% on all car imports will further affect Nissan’s sales, with analysts warning that this could be a “death blow” for the company if the situation persists. Nissan has some protection from these tariffs due to its production in Tennessee.
Nissan’s global struggles have also affected its European factory in Sunderland, which lost £63m in the year to March 2024 compared to a £32m profit last year. The company is now closely watched by rivals after years of turmoil and potential takeover bids are on the table, including a possible hostile bid from Honda.
Source: https://www.theguardian.com/business/2025/apr/24/nissan-warns-of-4bn-loss-as-costs-rise-and-trump-tariffs-loom