Nissan Motor(US:NSANY) Zhi Tong Cai Jing·2025-10-31 03:17Core Viewpoint - Nissan Motor Co. is expected to record an operating loss of 275 billion yen (approximately 1.8 billion USD) for the current fiscal year, prompting the company to implement aggressive cost-cutting measures to address its deteriorating financial situation [1] Group 1: Financial Performance - This is the first time Nissan has provided earnings guidance for the fiscal year ending March 2026, having previously refrained from offering profit forecasts [1] - Nissan anticipates a loss of 30 billion yen for the first half of the fiscal year (April to September), which is better than its prior forecast of a 180 billion yen loss [1] - The company's stock price fell by 6.1% in early trading on the Tokyo stock market, marking the largest intraday drop since August 26, with a cumulative decline of approximately 27% year-to-date [1][2] Group 2: Challenges and Restructuring - Nissan is facing its most severe financial crisis in over two decades, reminiscent of a previous crisis that led to a bailout by Renault SA [1] - The company is grappling with significant profit declines, high debt levels, frequent management changes, a weak product lineup, and declining sales in the U.S. and Chinese markets [1] - CEO Ivan Espinosa has committed to a series of cost-cutting measures, including laying off 20,000 employees and reducing global production bases from 17 to 10 [2] - Specific actions include transferring production from the Civac plant in Mexico to the Aguascalientes facility by the end of the fiscal year and closing the Oppama flagship plant in Japan by March 2028 [2] - Analyst Tatsuo Yoshida noted that the lower-than-expected loss for the first half of the fiscal year is not due to significant business improvement but rather influenced by one-time costs [2] - CFO Jeremie Papin attributed the reduced loss to expenses related to U.S. emissions regulations, prior liabilities, and other one-time factors [2]