Nissan’s Significant Losses And Stated EV Plan Modifications

Nissan revealed on Thursday that it is expecting a net loss of $4.9 billion to $5.3 billion for the fiscal year ending on March 31. The Japanese carmaker attributed the substantial loss, a record figure for the company, to its ongoing restructuring efforts and other contributing factors.

Over the past year, Nissan has encountered significant challenges and may be running out of time to reverse its fortunes. The previous CEO’s restructuring strategy did not go as anticipated, leading to a failed merger attempt with Honda in February. This resulted in Makoto Uchida being replaced by Ivan Espinosa as the company’s leader.

Nissan has also had to downsize its workforce and scale back its production capacity. Espinosa stated in a release announcing the company’s updated financial forecast that they are implementing measures to reassess their full-year outlook based on a comprehensive evaluation of their performance and manufacturing assets’ carrying value.

According to Nissan, more than $3.5 billion of the loss is linked to asset impairments in North America, Europe, Latin America, and Japan. An impairment occurs when an asset experiences a permanent drop in value. Despite facing its largest financial loss to date, the company has a net cash balance of $10.5 million.

In the United States, Nissan observed a 5.4 percent rise in sales in 2024 compared to 2023. The automaker also revealed its decision to scrap plans for two electric sedans in the US in favor of concentrating on SUVs.

The electric sedans, initially intended to replace the Maxima and Altima and be manufactured in the US, have now been officially axed, along with alterations to the electric crossover project. Nissan confirmed that changing market conditions necessitated a reassessment of its EV initiatives initially planned for a facility in Canton, Mississippi.