Nissan President and CEO Ivan Espinosa has announced the Japanese automaker will be closing seven of their auto plants as the company announces huge losses in their financial results briefing.
On Tuesday, the auto giant’s CEO reported a net loss of 670.9 billion yen (approximately $4.6 billion USD) in 2024.
FY24 results also showed an operating profit of 69.8 billion yen (approximately $478 million USD), a 88% decrease from the previous year.
During the announcement Espinosa said:
“As you can see, our financial results are a wake-up call. The reality is very clear. Our variable costs are rising, our fixed costs are higher than our current revenue can support,”
The company detailed a total cost saving estimate of around 500 billion yen.
Espinosa said the company “must prioritise self-improvement with greater urgency” if it wants to see profits increase this year.
Nisan has seen weakening sales, failed merger talks with Honda, and the replacement of its CEO, in the last year alone.
The company announced it will also be cutting a total of 20,000 jobs globally among its workforce.
The automaker has not confirmed which factories or workforces will be affected by these cuts – Sunderland’s 6,000-man plant is one of the many factories that could be hit.
In a press release, Nissan’s 2025 outlook stated the company will be prioritising operations in the United States.
“We are prioritising U.S.-built products, optimising local capacity, reallocating tariff-exposed production, and working closely with suppliers to localize and adapt swiftly to market demands.”
The Japanese carmaker announced three weeks ago it will also be committing $1.4 billion to its Chinese operations in efforts to increase sales in the Chinese market.
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