News On Japan

Nissan Reports Another Massive Loss

TOKYO - Nissan Motor announced its financial results for the year through March 2026 on May 14th, reporting a net loss for the second consecutive year as the company continues efforts to rebuild its business.

The automaker posted a final net loss of more than 533 billion yen for fiscal 2025.

The result was affected by the impact of Trump-era tariffs in the United States, as well as expenses related to factory closures and restructuring measures, including workforce reductions.

Despite the heavy losses, Nissan said it expects to return to profitability in fiscal 2026, forecasting a net profit of 20 billion yen due to the launch of new vehicle models and the effects of ongoing cost-cutting measures.

After the departure of Carlos Ghosn following his arrest in late 2018 and subsequent escape from Japan in 2019, Nissan Motor entered one of the most unstable periods in its modern history, marked by leadership turnover, shrinking global sales, restructuring costs, and repeated swings between profit and loss.

For the fiscal year ending March 2020, Nissan posted a net loss of roughly 671 billion yen, its worst result in more than a decade at the time, as sales weakened sharply in the United States and Europe even before the COVID-19 pandemic intensified the downturn. The company was already cutting production and closing plants under a restructuring program launched after the Ghosn era.

In fiscal 2020, covering the height of the pandemic, Nissan remained in the red with another large loss of around 449 billion yen as global vehicle demand collapsed and factories faced shutdowns across multiple regions. The company withdrew from markets such as South Korea and closed plants in Spain and Indonesia during this period.

A temporary recovery followed in fiscal 2021, when Nissan returned to profitability with net income of about 215 billion yen, helped by cost-cutting, improved semiconductor supply conditions, and stronger earnings in North America. Fiscal 2022 also remained profitable, with earnings rising further to more than 220 billion yen as the weaker yen boosted overseas revenue.

However, the recovery proved fragile. Fiscal 2023 saw profits decline amid intensifying competition in China and rising costs tied to electric vehicle investment and incentives in major markets.

In fiscal 2024, Nissan fell back into deep losses, reporting a net deficit of around 671 billion yen, one of the worst annual performances in company history. Operating profit plunged nearly 88%, while the company announced sweeping restructuring measures including plant closures and tens of thousands of job cuts.

For fiscal 2025, announced on May 14th, 2026, Nissan reported another annual loss of more than 533 billion yen, marking its second consecutive year in the red. The company said the result was affected by Trump-era U.S. tariffs, restructuring expenses, and factory closure costs.

Despite the prolonged difficulties, Nissan now forecasts a return to profitability in fiscal 2026, expecting net profit of around 20 billion yen through new model launches and aggressive cost reductions under CEO Ivan Espinosa.

Source: FNN

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