Car maker Nissan says it expects to report a global operating loss of more than £1.3bn (¥275bn) this year amid cost cutting efforts and challenges including tariffs.
The Japanese automotive giant pointed to "supply chain risks, foreign exchange volatility, tariffs and other external factors" as it gave full-year guidance. Bosses said challenges continued as the firm pursues its Re:Nissan restructuring plan that aims to slash £2.4bn of costs and will cut 20,000 jobs globally, including 250 roles at its key Sunderland factory.
In an update on its global finances, Nissan said it expects to report £56.8bn (¥11.4trillion) revenue for the full year, compared with £62.8bn (¥12.6trillion) in 2024. The guidance includes expectations that Nissan will report an operating profit of £249m (¥50bn) for the three months to the end of September and a £149m (¥30bn) operating loss for the first six months of the year.
Previously, Nissan had expected £897m (¥180bn) operating losses for the first half with bosses saying the stronger than expected results were helped by one-time benefits including lower costs related to emission regulations and some project expenses deferred to the second half as it chose to focus on restructuring.
Jeremie Papin, chief financial officer, said: “While our first-half results reflect temporary benefits and payback from cost-saving initiatives, we anticipate ongoing challenging competitive environment in the second half, supply chain risks and the seasonality of business. Our priority remains disciplined execution, strong cash flow management, and safeguarding profitability as we navigate these headwinds. We are committed to maintaining transparency and delivering on the objectives of Re:Nissan."
Recently published figures for the six months between April and September this year show the firm's º£½ÇÊÓƵ production slumped 10.6% as global production fell 5.3%. European sales over the same period fell 7.9% to 146,536 while global sales were down 3.1% to more than 1.5 million.
Nissan has been engaged in a major fight for its survival in recent months as it aims to raise billions. The Re:Nissan effort will also include the closure of seven factories over the next few years.
In a September update on the process, the manufacturer said it was consolidating its design department with the winding down of operations in San Diego, California and in São Paulo, Brazil. Its offices in London and Japan are also being downsized in a restructuring that will conclude this year.
Alfonso Albaisa, corporate executive of global design at Nissan Motor Co., Ltd, said: "We are reshaping our operations into five agile hubs that harness new technologies and creative energy to deliver faster, smarter, and more connected design solutions, ensuring resilience and relevance in a rapidly evolving industry. This strategic shift empowers our organization to focus on upstream innovation and future mobility, while enhancing our creative agility and competitive edge in an increasingly dynamic landscape."
