Core Viewpoint - Nissan is undergoing a significant restructuring by closing two domestic factories, aiming to improve operational efficiency and return to growth amidst declining sales and overcapacity [1][2]. Group 1: Factory Closures - Nissan announced the closure of the Zama plant by the end of the 2027 fiscal year, with production shifting to the Kyushu plant in Fukuoka [1]. - The Shonan plant will cease operations by the end of the 2026 fiscal year, marking the first major capacity reduction in Japan since the closure of the Murayama plant in 2001 [1][2]. - Out of five domestic factories, two will be closed while the remaining will continue operations [1]. Group 2: Impact on Workforce and Production - The Zama plant employs approximately 2,400 workers, who will continue working until the end of the 2027 fiscal year [2]. - The current operating rate of Nissan's domestic factories is around 60%, and the closures are expected to increase this rate to 100% and reduce production costs in Japan by 15% [2]. Group 3: Future Plans for Closed Facilities - Discussions are ongoing regarding the future use of the Zama plant, with potential sale negotiations with multiple partners, including Foxconn [2]. - The Zama plant currently produces the "Note" and "Note Aura" models, with plans to transfer the production of the upcoming SUV model "Kicks" to Kyushu [2]. - The Shonan plant is also exploring auxiliary business opportunities, prioritizing employment and considering various possibilities [2].

Core Viewpoint - Nissan is facing significant operational challenges, leading to a net loss of 670.8 billion yen (approximately 33.7 billion RMB) for the fiscal year 2024, prompting shareholder dissatisfaction and calls for management accountability [2][4]. Financial Performance - For the fiscal year 2024, Nissan reported a net loss of 670.8 billion yen (approximately 33.7 billion RMB) [2]. - The company anticipates a loss of 450 billion yen due to tariffs imposed by the U.S. government, with an expected operating loss of 200 billion yen for the period from April to June 2025 [4]. - In China, Nissan's sales in May 2024 were 57,998 units, a decline of 9.7% year-on-year, with cumulative sales down 21.3% to 225,560 units [5]. Strategic Restructuring - Nissan announced a restructuring plan, "Re:Nissan," which includes laying off 20,000 employees and reducing global production capacity by 20% by the fiscal year 2026 [2][6]. - The company plans to consolidate its global manufacturing facilities from 17 to 10, with confirmed closures in Thailand, Mexico, Argentina, India, and Japan [2]. - Nissan aims to achieve cost savings of approximately 500 billion yen, with a focus on both variable and fixed costs [7]. Market Challenges - The U.S. tariffs on imported vehicles and key automotive parts have severely impacted Japanese automakers, with Nissan's market share in China dropping to 2.21% [2][5]. - Nissan's sales in China fell to 696,600 units in 2024, a decrease of 12.23% year-on-year, with electric vehicle deliveries accounting for less than 5% of total sales [5][6]. Future Plans - Nissan plans to pause new product development after the fiscal year 2026 and reduce the number of suppliers, focusing on more competitive partners, particularly in China [8]. - The company is considering selling its global headquarters in Yokohama, estimated to be worth over 100 billion yen (approximately 5.03 billion RMB), to fund restructuring costs [7].

Core Viewpoint - Nissan is undergoing significant restructuring due to poor performance, which includes closing domestic factories and laying off approximately 20,000 employees globally, representing 15% of its workforce [1][2]. Group 1: Factory Closures and Production Capacity - Nissan plans to close some of its five factories in Japan to address overcapacity and reduce costs, with specific factories to be determined later [1]. - The total production capacity of Nissan's Japanese factories exceeds 1 million units, but the utilization rate is only 56.7% in 2024, significantly below the breakeven point of 80% [1][2]. Group 2: Workforce Reduction - The company has increased its global workforce reduction plan from 9,000 to approximately 20,000 employees due to ongoing poor performance [2]. - The layoffs are part of a broader strategy to rebuild operations, particularly in North America and China, where sales have been weak [2]. Group 3: Financial Performance and Losses - Nissan anticipates a potential loss of up to 750 billion yen for the fiscal year ending March 2025, prompting a reassessment of asset values and a significant impairment charge exceeding 500 billion yen [3]. - The company has also decided to cut growth investments, including abandoning plans for a battery plant in Kitakyushu, prioritizing cash preservation instead [3].

Core Viewpoint - Nissan is facing significant sales decline in North America and China, leading to a major restructuring plan that includes a substantial increase in layoffs and production cuts [1][2]. Group 1: Layoffs and Production Cuts - Nissan plans to lay off approximately 20,000 employees globally, which represents a 15% reduction in its workforce of about 130,000 [1]. - The company initially announced a layoff of 9,000 employees and a 20% reduction in production capacity (1 million units) but has since increased the layoff number by over 10,000 [1]. - The current factory utilization rates are significantly below the breakeven point of around 80%, with U.S. plants at 57.7%, Chinese plants at 45.3%, and Japanese plants at 56.7% [1]. Group 2: Financial Performance and Management Changes - Nissan's former president, Makoto Uchida, resigned in March due to poor performance and failed negotiations with Honda regarding business integration [2]. - Ivan Espinosa, previously in charge of product planning, has taken over as president and is focused on implementing structural reforms [2]. - For the fiscal year 2024, Nissan anticipates a potential loss of up to 750 billion yen and has reassessed asset values, leading to over 500 billion yen in impairment losses [2]. - The company has also scaled back growth investments, including abandoning plans for a battery plant in Kitakyushu, prioritizing cash preservation instead [2].