Nissan announced on Thursday it will post a ¥700 billion to ¥750 billion ($4.9 to $5.3 billion at today’s exchange rate) net loss for its 2024 fiscal year, which ended March 31. The automaker blamed the massive loss—a record amount for the company—on “its ongoing turnaround plan, and other factors.”
Nissan has faced significant hurdles over the last 12 months, and might not have much time to fix things. The previous CEO’s turnaround plan failed to materialize as intended, culminating in a failed merger with Honda in February that resulted in the company replacing Makoto Uchida with Ivan Espinosa.
Photo by: Jeff Perez / Motor1
It’s possible a new boss can set a course toward profitability. The automaker has an aging portfolio while facing stiff competition from China. It has had to lay off workers and reduce its production capacity.
“We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets,” Espinosa said in a statement announcing the company’s revised financial outlook.
More than ¥500 billion ($3.5 billion) of that loss is related to impairments in North America, Europe, Latin America, and Japan, according to the company. An impairment is when an asset suffers a permanent decrease in value, and even though Nissan will lose more money than ever, the company has ¥1.5 trillion ($10.5 million) in net cash.
The company expects an operating profit of ¥85 billion ($597 million) with ¥12.6 trillion ($88.5 billion) in net revenue, which the company says is “due to the changes in the competitive environment and deterioration in sales performance.”
In the US, Nissan actually saw its sales increase in 2024, up 5.4 percent compared to 2023. However, the automaker had to ask dealers to sell cars at a loss, which sent dealer profits off a cliff. It even reduced Rogue production last September due to bloated inventories, and now, the brand’s best-selling model is cheaper for 2025.
Nissan is saying the right things to excite enthusiasts, but few brands can survive on hardcore fans alone. While Espinosa might drive a Z to work, the company needs a fresher lineup to remain competitive. Sales for its cheapest products, like the Versa, are exploding as prices rise and the American government implements sweeping tariffs on the auto industry, which might be one of the few positives for Nissan right now.
Nissan will announce its full-year results for the 2024 fiscal year on May 13.
