Nissan reports $4.6 billion loss after closing seven factories
Nissan anticipates a profit next year after closing more than half a dozen factories and sacking tens of thousands of workers.
Nissan has reported a 533 billion Japanese yen loss (AUD$4.6 billion) for the last financial year, but the iconic Japanese brand predicts its books will return to the black by this time next year.
The anticipated net income of ¥20 billion (AUD$175 million) in 2026 comes at great cost, as the brand shuttered seven manufacturing sites across the world last year, and anticipates layoffs totalling 20,000 workers by 2027, according to Nissan CEO Ivan Espinosa.
“Turning to cost reduction, we set to deliver 500 billion in savings from fixed and variable costs. On fixed costs, we are ahead of plan with 200 billion in savings,” Espinosa said.
“This progress has built steadily supported by disciplined execution including the actions taken across our manufacturing footprint.”
MORE: Nissan’s crucial new cars arriving in 2026
US tariffs on vehicle imports hurt Nissan, dropping ¥286 billion (AUD$2.5 billion) from its balance sheets, but Nissan made no reference to the ongoing conflict in the Middle East in its forecasting of 2027 financial year net profits.
It stands in contrast to Toyota, which announced an anticipated AUD$5.8 billion hit to its bottom line from the ongoing conflict — forecasting a third year of profit decline for the world’s largest automotive brand.
Nissan sold 3.15 million vehicles in 2025, a decrease of 5.8 per cent from the year prior, but the brand predicts an increase in sales to 3.3 million units in the 2027 Japanese financial year.
Nissan’s 2026 financial year figures span 1 April 2025 to 31 March 2026, as it is a Japanese company.
MORE: Toyota predicts third year of declining profits, blaming tariffs and Middle East conflict
Nissan’s losses in FY2025 represent a marginal improvement over the ¥670.9 billion (AU$5.8 billion) it reported in 2024. The brand’s plans for recovery are dubbed ‘Re:Nissan’, and Espinosa said it was progressing as planned.
“FY2025 marked a year of steady execution under Re:Nissan, where we strengthened our foundation and began to see tangible progress in our financial performance,” Espinosa said in a media statement.
“At the same time, we set our long‑term direction with Mobility Intelligence for everyday life. We have moved beyond recovery and are entering a phase of growth.
“In FY2026, we will build on this momentum through disciplined cost management and faster product execution, driving sales and profitability as we deliver our Re:Nissan commitments. At the same time, we will continue to evolve the customer experience in line with this vision.”
MORE: Nissan’s Australian casting plant future secured, but unclear for how long
Nissan was the 12th most-popular brand in Australia last year, reporting 35,511 sales, a drop of 21.5 per cent from 2025.
The brand maintains a small manufacturing operation in Australia, with the Nissan Casting Australia Plant (NCAP) in Melbourne’s south-east producing 1.2 million components which are exported globally and found in models including the X-Trail, Navara, Leaf and Qashqai.
Nissan told Drive this time last year the plant’s future was at least temporarily secured due to producing parts for the new-generation Y63 Patrol and next-generation electric-car components.
The casting plant employs 193 workers operating 24 hours for up to six days a week.
The marque has just released one of its most anticipated models for Australia in 2026, the new-generation Navara — based on the Mitsubishi Triton. The Y63 Patrol is also expected to hit Australian shores at the end of this year, potentially providing a much-needed boost.
The post Nissan reports $4.6 billion loss after closing seven factories appeared first on Drive.
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