The Nissan quarterly loss has reignited criticism of the company’s direction and leadership decisions. On Tuesday, Nissan Motor Co. projected a net loss of 200 billion yen for the April–June period. CEO Ivan Espinosa, newly appointed in April, took responsibility. He apologized to shareholders and promised a return to profitability by fiscal 2026. His statement came during a tense annual meeting filled with frustration.
The Nissan quarterly loss follows a 670.9 billion yen net loss in fiscal 2024. That year ended in March and revealed deep problems in the company’s operations. Sales in the U.S. and China have dropped sharply, further hurting revenue.
Espinosa blamed the performance partly on high U.S. tariffs on Japanese vehicles. Former President Donald Trump’s policies continue to affect Japanese automakers. Nissan has also been slow to adapt to new market demands like electric vehicles and software integration.
To address the crisis, Espinosa outlined a restructuring plan. Nissan will shut down seven factories and eliminate 20,000 jobs. The company will soon announce which factories are closing.
Shareholders were especially angry at former CEO Makoto Uchida. Although he attended the meeting, he refused to answer questions. Investors criticized massive payouts to Uchida and three other departing executives.
Tsuyoshi Maruki, head of Strategic Capital Inc., expressed dismay. He said Uchida’s silence showed a lack of accountability. However, he praised Espinosa’s composed response and voiced cautious optimism. In addition to layoffs, Nissan may sell its headquarters in Yokohama. The move aims to free up funds to manage ongoing costs. Still, many longtime shareholders were upset about the restructuring plan.
One 76-year-old shareholder said, “I’ve driven Nissan cars for decades. The leadership is avoiding responsibility and targeting workers instead.” Talks of a merger with Honda fell apart earlier this year. Yet, Nissan continues discussions with Honda and Mitsubishi on electric vehicle development and technology sharing.
The Nissan quarterly loss reflects deeper challenges in adapting to global changes. Espinosa now carries the burden of rebuilding trust, modernizing operations, and preparing for an electric future. As the next quarter approaches, the Nissan quarterly loss remains a warning sign of what must change for the company to survive.
