Nissan struggles with losses, EV demand concerns
Nissan Motor Corp. reported a deeper quarterly loss through December as restructuring expenses weighed on profitability.
The Yokohama-based automaker said Thursday it recorded a net loss of 28.3 billion yen ($185 million) for the October–December quarter, roughly double the 14 billion yen loss posted during the same period a year earlier, News.Az reports, citing AP.
Quarterly sales declined 6% to nearly 3 trillion yen ($19.6 billion), down from 3.2 trillion yen the previous year.
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“Unfortunately, when you do restructuring, there are costs that are incurred,” Chief Executive Ivan Espinosa told reporters, describing the impact as expected. He maintained that the company remains on the right track but acknowledged challenges including U.S. President Donald Trump’s tariffs and broader pressure on vehicle sales.
Nissan, known for its Leaf electric vehicle and Infiniti luxury models, aims to return to operating profit by the end of fiscal 2026. For the current fiscal year ending in March, however, the company expects an operating loss and projects a net loss of 650 billion yen ($4.2 billion).
Espinosa, a Mexican executive with two decades at Nissan who took over last year, is leading efforts to turn around the struggling automaker. As part of its restructuring, Nissan has cut jobs, sold its headquarters building, and announced the closure of its flagship Oppama factory in Japan under a broader global production overhaul.
Some analysts warn that slowing demand for electric vehicles could create additional headwinds for manufacturers like Nissan, which has strongly promoted EVs. Espinosa said the company must further persuade consumers to adopt electric cars, including through the development of new battery technologies, but expressed confidence in the upcoming Leaf model.
Nissan shares, which have declined over the past year, rose 0.5% on Thursday.
The automaker maintains strategic partnerships with French carmaker Renault and Japan’s Mitsubishi Motors Corp..
By Nijat Babayev
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