Nissan Eyes US$1.2 Billion Loss, Will Shutter 7 Plants by FY2027

Nissan expects operating losses of approximately ¥180 billion (US $1.2 billion) in the first half of the fiscal year ending March 31. Based on current trends, analysts project a full-year loss of around ¥234 billion (US$1.58 billion). Nissan previously reported a net loss of ¥671 billion for the prior fiscal year—one of its largest annual losses in 25 years. 

First-quarter results revealed an operating loss of ¥79.1 billion (US $535 million) for the three months ended June 30, 2025, marking the automaker’s first quarterly operating loss in over four years. However, the figure was narrower than both analysts’ average estimate of ¥123.9 billion and Nissan’s own earlier forecast of ¥200 billion.

In response, the company is implementing a financial stabilization strategy called  Re:Nissan, which targets a global workforce reduction of up to 20,000 jobs and a consolidation of manufacturing operations from 17 sites to 10 by fiscal 2027. The plan also includes cutting global vehicle production capacity—excluding China—from 3.5 million to 2.5 million units. These measures aim to manage restructuring costs and adapt to evolving market conditions in the United States and China.

During the first half of 2025, global vehicle production declined 10.8% year-over-year to 1,439,040 units. Production in Japan fell 11.1% to 291,773 units, while output outside Japan dropped 10.8% to 1,147,267 vehicles. Regional breakdowns showed declines of 14.7% in the United States, 16.6% in the UK, and 20.9% in China. Mexico remained stable, posting a slight 0.3% increase, with 341,530 units produced.

Global sales in the same six-month period declined 5.7% to 1,613,797 vehicles. Sales in Japan, including minivehicles, dropped 10.3% to 220,420 units, while overseas sales declined 4.9% to 1,393,377 units. In key markets, Nissan recorded a 17.6% decrease in China, a 4.1% drop in Europe, and a marginal 0.2% decline in the United States. Exports from Japan also fell 17.8% year-over-year to 158,859 units. Shipments to North America and Europe declined sharply—34.1% and 36.6%, respectively—while exports to the "Others" category, which includes Mexico, Thailand, and Brazil, rose 14.5%.

As part of its restructuring efforts, Nissan announced the closure of its Civac plant in Morelos, with production shifting to the Aguascalientes complex. The Civac facility—Nissan’s first production site outside Japan—began operations in 1966 and has produced over 6.5 million vehicles, including the NP300, Frontier, and Versa. CEO Iván Espinosa stated, “We have made the difficult but necessary decision that will allow us to become more efficient, more competitive, and more sustainable”.