Nissan’s Significant Losses And Stated EV Plan Modifications

Nissan announced on Thursday that it would have a net loss of $4.9 billion to $5.3 billion for its fiscal year ended March 31. The Japanese automaker blamed the huge loss, a record amount for the company, on “its ongoing turnaround plan” as well as other factors.

Nissan has faced significant setbacks over the past 12 months and may not have time to turn things around. The previous CEO’s turnaround plan has not gone as planned. This culminated in a failed merger attempt with Honda in February, which resulted in Makoto Uchida being replaced by Ivan Espinosa at the helm of the company.

Nissan has also had to lay off workers and reduce its production capacity. “We are taking steps to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of our manufacturing assets,” Espinosa said in a statement announcing the company’s revised financial outlook.

More than $3.5 billion of that loss relates 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 while Nissan will lose more money than ever, the company has $10.5 million in net cash.

In the US, Nissan saw sales increase in 2024, a 5.4 percent increase over 2023.

Nissan also announced that it is cancelling plans for two electric sedans in the US, as it plans to focus on SUVs.

These electric sedans were originally slated for production in the United States (as replacements for the Maxima and Altima). Now it has been confirmed that those models have been officially cancelled, as well as changes to the electric crossover plans.

Nissan has confirmed that changing market conditions have forced it to re-evaluate EV projects originally planned for a site in Canton, Mississippi.

• Also See: Nissan Will No Longer Accept US Orders For Two Mexican-Made Infiniti SUVs