Nissan swings to first half loss, to sell Yokohama headquarters

Core Insights - Nissan Motor reported a net loss of Y221.9 billion ($1.4 billion) for the first half of fiscal year 2025, contrasting with a net profit of Y19.2 billion in the same period a year earlier [1][2] - The company plans to sell its Yokohama headquarters building as part of its strategy to dispose of non-core assets, with proceeds reinvested to modernize facilities and support future growth [5] Financial Performance - First half sales revenue declined 6.8% year on year to Y5.58 trillion [2] - Nissan recorded an operating loss of Y27.6 billion, reversing an operating profit of Y32.9 billion in the prior-year period [2] - Global vehicle sales totaled 1.48 million units in the half [2] - The company projects revenue of Y11.7 trillion for the full fiscal year ending March 2026, a 6.4% reduction from its previous outlook of Y12.5 trillion [3] Cost Management and Savings - Nissan expects to break even at the operating level when excluding the impact of US tariffs; including estimated tariffs, the company forecasts an operating loss of Y275 billion [4] - The company has identified Y200 billion in potential variable cost savings, with more than Y80 billion achieved in the first half [6] - Fixed cost cuts are progressing quickly, and Nissan remains confident of surpassing its Y250 billion target by fiscal 2026 [6] Strategic Initiatives - The sale of the Yokohama headquarters will allow Nissan to lease the building back for 20 years, maintaining its operations there [5] - Under the Re:Nissan program, the company aims to achieve positive automotive operating profit and free cash flow by fiscal 2026 [5] - Nissan is prioritizing new products, key markets, and breakthrough technologies as part of its future strategy [7]