Nissan Motor Company is grappling with escalating financial losses, projecting a deficit of 750 billion yen (approximately 4.62 billion euros) for the fiscal year ending March. This figure represents a stark increase compared to the previously estimated loss of 80 billion yen. The automaker attributes this financial strain to intensified market competition and an aging lineup of vehicles, forcing the company to rely heavily on discounts to stimulate sales.
Additionally, Nissan’s financial predicament has been exacerbated by substantial factory write-offs across key regions including North America, Latin America, Europe, and Japan. The cost of restructuring, including the elimination of 9,000 jobs announced last November, has proven higher than anticipated. Despite these measures, the company faces significant challenges in competing with rapidly expanding Chinese electric vehicle manufacturers and established players like Tesla.
In an attempt to bolster its position, Nissan explored a merger with Honda, but discussions failed to yield an agreement. The fallout from these negotiations led to the departure of CEO Makoto Uchida, who previously emphasized the necessity of strategic partnerships for the company’s survival. Nissan’s full-year financial report is set to be released on May 13, providing further insight into its strategy to navigate these turbulent times.