Nissan has unveiled major cost-cutting measures to deal with financial fears as it confirms the closure of seven production plants and the loss of 20,000 jobs.
Speaking during its financial results briefing, Nissan announced that it had a net loss of 670.9 billion yen or £3.4billion.
Despite selling more than 3.3 million units in the 2024-25 financial year, Nissan has dealt with major issues stememing from its delay to electrify its fleet and combat Chinese rivals.
As part of the sweeping measures to save money, Nissan will significantly cut its operational output, including slashing its vehicle production plants from 17 to just 10.
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Nissan said it would be cutting 20,000 jobs across its global workforce
PA
The Japanese automaker will slash 20,000 jobs and close seven plants, although it failed to confirm which factories would be closed.
There are fears that Nissan's Sunderland plant could be impacted, where it currently employs around 6,000 workers.
Nissan backed the plant in 2023 with a massive £2billion investment in the factory, as part of plans to manufacture two new electric vehicle models and expand the North East electric vehicle hub.
President and CEO of Nissan, Ivan Espinosa, said the decision was "not easy" to announce the changes, adding that the brand would be diligent in its approach to those losing their jobs.
CFO Jeremie Papin delivers Nissan's financial results
REUTERS
Espinosa said: "In Europe, we will strengthen our presence by assembling more electrified vehicles in Sunderland, utilising our relationship with Renault to take advantage of their assembly lines and electric vehicle architectures.
"In very simple terms, all of our product efforts must be aimed at making the heart of Nissan beat stronger."
A spokesperson for Nissan said: "We are currently in a detailed study within the company regarding the announced plant closures. At this stage, we are not able to inform you which plants will be affected," the Sunderland Echo reported.
Espinosa said he hoped that normal market conditions would come back amid volatility from President Donald Trump's tariffs on the import of foreign vehicles to the United States.
He claimed that if tariffs were removed, Nissan would become profitable by the end of this year, in addition to redefining its product strategy and reinforcing partnerships with other manufacturers.
Jeremie Papin, CFO of Nissan, added that the brand had enough liquidity to cover the funding needs, which will support the brand as it lays out its restructuring plan.
While Nissan saw free cash flow and operating profit decrease, the total of its automotive net cash was almost 1.5 trillion yen (£7.6billion).
Espinosa, who has only been President and CEO of Nissan since April, will be responsible for taking the brand to a stable place after former boss Carlos Ghosn was seen to hurt the manufacturer with heavy discounts.
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Nissan's Sunderland production factory employs around 6,000 workers
PA
In recent months, Nissan has seen sales fall in the United States and China, while a groundbreaking merger with Honda collapsed.
In spite of global results and pessimism surrounding the brand, Nissan's sales figures across the UK remain healthy, with 32,754 vehicles sold in the first four months of the year.
While this is enough for 4.67 per cent of the total market share, total registrations are down 16.45 per cent compared to the same time last year.
