Core Viewpoint - Nissan is facing a significant crisis, with a sharp decline in global sales and a substantial net loss for the first half of the 2025 fiscal year, marking its first half-year loss in five years [1][2][4]. Sales Performance - In the first half of the 2025 fiscal year (April to September), Nissan's global sales fell by 7.27% year-on-year to 1.48 million units, with sales in China and Japan dropping by 17.6% and 16.5%, respectively [1][4]. - For the entire 2025 fiscal year, Nissan forecasts a 2.9% decline in global sales to 3.25 million units, with specific market predictions of a 7.4% drop in China to 645,000 units and a 3.4% drop in Japan to 445,000 units [2][4]. Financial Performance - Nissan's revenue for the first half of the 2025 fiscal year decreased by 6.69% to 5.58 trillion yen, resulting in an operating loss of 27.7 billion yen and a net loss of 221.92 billion yen, compared to a net profit of 19.22 billion yen in the same period last year [1][4]. - The company anticipates an operating loss of 275 billion yen for the entire fiscal year, although it believes it can achieve breakeven without tariff impacts [2][4]. Strategic Response - To address the financial challenges, Nissan is implementing a strategy of "asset monetization, capacity reduction, and personnel optimization," which includes selling its headquarters in Yokohama for 97 billion yen and initiating the "Re:Nissan" transformation plan [2][8]. - The "Re:Nissan" plan aims to reduce global production facilities from 17 to 10 by the 2027 fiscal year, with a target production capacity of 2.5 million units and a workforce reduction of 20,000 employees, approximately 15% of its total workforce [7][8]. Market Challenges - Nissan is experiencing supply chain issues, particularly due to export controls affecting semiconductor supplies, which have led to production cuts at its facilities [10]. - The company is also facing technological and strategic challenges, having fallen behind competitors like Tesla and BYD in the electric vehicle market due to insufficient investment and slow model updates [11][12]. Focus on China - Nissan is shifting its focus to the Chinese market, viewing it as critical for its recovery, and is decentralizing decision-making to local teams [13][14]. - The company plans to launch several new models developed by its Chinese teams, aiming to regain market share in a competitive environment where its market presence has been declining [15][18].

Core Viewpoint - Nissan is facing a significant crisis, with a sharp decline in global sales and a substantial net loss for the first half of the 2025 fiscal year, marking its first half-year loss in five years [1][5][9]. Sales Performance - In the first half of the 2025 fiscal year (April to September), Nissan's global sales fell by 7.27% to 1.48 million units, with significant declines in key markets: China down 17.6% to 279,000 units and Japan down 16.5% to 186,000 units [1][9]. - For the entire 2025 fiscal year, Nissan forecasts a 2.9% decline in global sales to 3.25 million units, with expected drops of 7.4% in China and 3.4% in Japan [4]. Financial Performance - Nissan's revenue decreased by 6.69% to 5.58 trillion yen, with a net loss of 221.92 billion yen, a stark contrast to a net profit of 19.22 billion yen in the same period last year [1][9]. - The company anticipates an operating loss of 275 billion yen for the entire fiscal year, although it believes it could break even without tariff impacts [5][9]. Strategic Response - To address the financial crisis, Nissan is implementing a strategy of asset monetization, capacity reduction, and personnel optimization, including the sale of its Yokohama headquarters for 97 billion yen [5][12]. - The "Re:Nissan" transformation plan aims to streamline operations, reduce global production sites from 17 to 10 by the 2027 fiscal year, and cut 20,000 jobs, approximately 15% of its workforce [11][12]. Market Challenges - Nissan is grappling with external challenges such as tariffs and supply chain disruptions, which are complicating its recovery efforts [6][14]. - The company is also facing technological and strategic setbacks, particularly in the electric vehicle sector, where it has fallen behind competitors like Tesla and BYD [15][20]. Focus on China - Nissan is shifting its focus to the Chinese market, viewing it as critical for its recovery, and is decentralizing decision-making to empower local teams [16][18]. - The company plans to launch several new models developed by its Chinese team, indicating a strategic pivot towards local market needs [17][18].

Core Viewpoint - Nissan is facing a significant crisis, with a sharp decline in sales and a substantial net loss for the first half of the 2025 fiscal year, marking the first half-year loss in five years [1][4][6]. Sales Performance - In the first half of the 2025 fiscal year (April to September), Nissan's global sales dropped by 7.27% to 1.48 million units, with sales in China and Japan declining by 17.6% and 16.5%, respectively [1][6]. - For the entire 2025 fiscal year, Nissan forecasts a 2.9% decrease in global sales to 3.25 million units, with expected declines in key markets: China (-7.4% to 645,000 units), Japan (-3.4% to 445,000 units), and North America (-0.2% to 1.3 million units) [4][6]. Financial Performance - Nissan's revenue for the first half of the 2025 fiscal year fell by 6.69% to 5.58 trillion yen, resulting in an operating loss of 27.7 billion yen and a net loss of 221.92 billion yen, compared to a net profit of 19.22 billion yen in the same period last year [1][6][9]. - The company anticipates an operating loss of 275 billion yen for the entire fiscal year, although it believes it can achieve breakeven without tariff impacts [4][6]. Strategic Response - To address the financial challenges, Nissan is implementing a strategy of "asset monetization, capacity reduction, and personnel optimization," which includes selling its headquarters in Yokohama for 97 billion yen and initiating the "Re:Nissan" transformation plan [4][10]. - The "Re:Nissan" plan aims to reduce global production facilities from 17 to 10 by the 2027 fiscal year, with a target production capacity of 2.5 million units and a workforce reduction of 20,000 employees, approximately 15% of its total workforce [9][10]. Market Position and Challenges - Nissan's supply chain risks are exacerbated by semiconductor shortages, leading to production cuts at its facilities [12]. - The company is struggling with technological and strategic lag, particularly in the electric vehicle sector, where it has fallen behind competitors like Tesla and BYD [13]. - Nissan is shifting its focus to the Chinese market, emphasizing local development and decision-making to regain market share, as its presence in China has been declining [14]. Competitive Landscape - In contrast to Nissan's struggles, Toyota's global sales increased by 5% to 4.783 million units in the same period, and Honda maintained profitability despite a sales decline [15].

By Maki Shiraki TOKYO (Reuters) -Nissan Motor will cut production of its top-selling Rogue SUV in Japan from next week due to a short supply of chips from Dutch firm Nexperia, according to a person familiar with the matter, the latest fallout from the diplomatic turmoil involving the chipmaker. Nissan plans to cut output of the Rogue sport-utility vehicle by about 900 vehicles in the week starting November 10 at its plant in southwestern Kyushu, said the person, who declined to be identified because the ...

Core Viewpoint - Japanese automotive manufacturers are facing significant financial challenges, with Nissan predicting an operating loss of 275 billion yen (approximately 1.8 billion USD) for the fiscal year ending March 2026, marking its most severe financial crisis in over two decades [4][6]. Group 1: Nissan's Financial Outlook - Nissan has lowered its consolidated sales forecast for fiscal 2025 from 12.5 trillion yen to 11.7 trillion yen, leading to a 6.1% drop in its stock price on October 31, the largest single-day decline in nearly two months [5]. - The company is experiencing a crisis comparable to its near-bankruptcy situation in the past, exacerbated by ongoing leadership turmoil and declining profits [6]. Group 2: Toyota and Honda's Challenges - Toyota sold 5,267,216 vehicles in the past six months, achieving the highest sales record in two years, yet it faces a projected net profit decline of 44.2% to 2.66 trillion yen (approximately 170 million USD) for the current fiscal year [8][10]. - Honda's global sales fell nearly 6% in September, with a 13% decline in the Chinese market, and it anticipates a 70% drop in profits for the fiscal year ending March 2026 [11][23]. Group 3: External Pressures - The automotive industry is under pressure from tariffs, a strong yen, and supply chain disruptions, which are collectively squeezing profit margins [13]. - The U.S. tariffs on non-American manufactured vehicles and parts, initially set at 25%, have been reduced to 15%, but still pose a significant burden on Japanese manufacturers [17][20]. Group 4: Currency Impact - The appreciation of the yen is expected to reduce the annual profits of Japan's seven major automakers by approximately 1.5 trillion yen, with Toyota facing a potential loss of 745 billion yen due to currency fluctuations [30][31]. - The yen's strengthening has reversed the benefits previously gained from its depreciation, leading to a projected 31% decline in Toyota's operating profit [32]. Group 5: Supply Chain Issues - A semiconductor supply shortage, particularly related to Nexperia, is threatening production across the industry, with Nissan indicating that its chip inventory may only last until early November [36][38]. - Additionally, the reliance on rare earth materials from China has decreased significantly, impacting the production of electric vehicles [43][44]. Group 6: Strategic Responses - Japanese automakers are focusing on deepening their presence in the U.S. market and localizing supply chains to mitigate risks from tariffs and currency fluctuations [47]. - Nissan is increasing production capacity in its U.S. factories and exploring partnerships with Honda to utilize idle capacity for producing pickup trucks [48][51]. Group 7: Cost Optimization and Product Strategy - Nissan is aggressively restructuring, planning to cut 20,000 jobs and reduce its global manufacturing sites from 17 to 10 [54][56]. - Both Nissan and Honda are shifting focus towards hybrid vehicles, with Toyota reporting that hybrid models accounted for 42% of its U.S. sales in the first half of the year [61].

Core Viewpoint - Nissan has reported significant financial losses for the first quarter of the 2025 fiscal year, attributing these losses to currency fluctuations and U.S. tariff policies, alongside a decline in global sales, particularly in the Chinese market [1][3][11]. Financial Performance - Nissan's net sales for the first quarter amounted to 2.7 trillion yen, a year-on-year decrease of 9.7% [1]. - The company recorded a net loss of 115.76 billion yen, a shift from a net profit of 28.56 billion yen in the same period last year [1]. - Operating losses reached 79.1 billion yen, compared to an operating income of 9.95 billion yen in the previous year [1]. Sales and Market Performance - Global retail sales for Nissan fell to 707,000 units, a decline of 10.1% year-on-year [3]. - In the Chinese market, Nissan's sales dropped by 27.5%, highlighting intense competition and a shrinking non-luxury joint venture segment [3]. - The U.S. market remains Nissan's largest, contributing 1.08 trillion yen, but saw a year-on-year decline of 10.23% [6]. Regional Sales Breakdown - Sales in Asia, including China, saw the largest decline, with net sales of 135.6 billion yen, down nearly 30% [7]. - The company plans to integrate powertrain production capacity and export models manufactured in China to overseas markets [7]. Electric Vehicle Strategy - Nissan has launched its first self-developed pure electric model, the N7, in China, with a total of over 10,000 units delivered within a month and a half of its launch [8]. - The company aims to introduce 10 new electric models in China by summer 2027, expanding its product offerings across various vehicle types [8]. Cost-Cutting and Restructuring Plans - Nissan has initiated a revival plan named "Re:Nissan," which includes cost optimization measures such as laying off 20,000 employees and closing seven global factories [9][10]. - The company expects to save 500 billion yen in costs by the 2026 fiscal year [9]. - Specific factory closures include the Civac plant in Mexico and the shutdown of the Oppama plant in Japan by the 2027 fiscal year [10]. Future Outlook - Nissan has not disclosed profit forecasts for the 2025 fiscal year but anticipates further losses, with operating losses potentially reaching 180 billion yen and net sales of 5.5 trillion yen for the first half [8]. - The company projects a 2.9% decline in global sales to 3.25 million units, primarily due to an expected 18.2% drop in the Chinese market [8].

Core Viewpoint - Nissan Motor Co., Ltd. has temporarily halted production of three vehicle models in the U.S. for the Canadian market due to escalating trade tensions and tariffs between the U.S. and Canada [1][2][9] Production Impact - The affected models include the Pathfinder and Murano SUVs, and the Frontier pickup, with production stopped in Tennessee and Mississippi [1][3] - The production pause is a response to a tariff dispute initiated by the Trump administration's 25% tax on auto imports, which led Canada to impose its own tariffs on American-made vehicles [2][4] Economic Viability - Nissan confirmed that the new tariffs have made it economically unviable to continue exporting these models to Canada, leading to an indefinite hold on production for the Canadian market [3][4] - Approximately 80% of Nissan's Canadian sales come from vehicles produced in Mexico and Japan, indicating a reliance on non-U.S. production for Canadian sales [4] Financial Challenges - Nissan is facing broader financial stress, reporting a net loss of $4.5 billion for the fiscal year ending in March and dealing with nearly $4.8 billion in debt due this year [5][9] - The disruption in production highlights deeper financial and operational challenges for the company, despite Canada representing a relatively small portion of its global business [5] Market Uncertainty - The future of U.S.-Canada trade talks remains uncertain, raising questions about whether the tariff situation will ease and if other automakers will take similar production steps [4]

Core Insights - Ford is experiencing an alarming increase in recalls in 2025, with 81 recalls in the first five months, surpassing the total of 67 recalls in all of 2024, affecting over 4 million vehicles [1][9] - The recalls indicate significant quality control issues, with 80 requiring physical inspections or repairs, suggesting deeper design flaws [1][9] - The company faces substantial financial implications from these recalls, with over $5 billion in losses anticipated from its EV division and additional warranty and recall-related expenses [6][10] Recall Details - A recent recall involved over 200,000 vehicles due to rearview camera failures, affecting models like Explorer, Maverick, Mustang, F-150, and Transit Connect from 2018 to 2024 [2][9] - Other recalls include five units of the 2025 F-150 Lightning for brake fluid leaks and 130,000 Lincoln Aviator SUVs for potential detachment of parts while driving [3] - Ford's recall issues are significantly more severe compared to competitors like General Motors and Nissan, which have faced fewer and less impactful recalls [4][5] Financial Impact - Recalls are costly, impacting margins due to repair logistics, parts replacement, labor costs, and dealership reimbursements [6] - The ongoing quality perception issues could lead to a loss of market share and consumer trust, further straining Ford's financials [7][10] - Ford's stock has underperformed, losing around 10% over the past year, with a forward price-to-sales ratio of 0.29, indicating a lower valuation compared to the industry [13][14]

Core Viewpoint - Nissan Motor Co., Ltd. is leveraging its new e-Power technology to facilitate a turnaround after reporting significant financial losses, focusing on the North American market for recovery [1][2]. Group 1: e-Power Technology - e-Power is a hybrid system that utilizes both an electric motor and a gasoline engine, providing a smooth driving experience without the need for charging [1][2]. - Unlike traditional electric vehicles, e-Power generates its own charge through gasoline, making it more convenient for drivers [2]. Group 2: Financial Performance and Strategy - Nissan reported a $4.5 billion loss for the fiscal year ending in March, highlighting the urgent need for a successful model [2]. - The company is implementing a major restructuring plan, which includes cutting about 15% of its global workforce (approximately 20,000 jobs) and reducing manufacturing plants from 17 to 10 [3]. Group 3: Market Position and Competitors - e-Power is currently available on models like Qashqai and X-Trail in Europe and Note in Japan, with plans to launch in the U.S. in the new Rogue [4]. - The only other automaker offering a similar hybrid system is Suzuki, indicating a competitive landscape for e-Power technology [4]. Group 4: Future Developments - Nissan is also working on advanced electric vehicles and solid-state battery technology, which may replace current lithium-ion batteries [5]. - Previous merger talks with Honda were dropped, indicating a shift in strategic focus [5].

Core Viewpoint - Nissan is facing its most severe crisis since 1999, with a net loss of 670.9 billion yen (approximately 32.6 billion RMB) and negative free cash flow, marking a financial cliff that puts the company at a crossroads of survival [1][2]. Financial Performance - Nissan reported its worst financial results in 25 years, with a net loss of 670.9 billion yen and an operating profit margin of less than 1% [1][2]. - The company aims to cut costs by 500 billion yen by the fiscal year 2027 and reduce its production capacity from 3.5 million to 2.5 million vehicles [2]. Strategic Initiatives - The new CEO, Ivan Espinosa, has launched the "Re:Nissan" revival plan, which includes closing seven factories and laying off 20,000 employees [2]. - Nissan plans to focus on six core markets globally, with China identified as a strategic priority for the next three years [2][5]. Market Challenges - Nissan's global sales declined by 2.8%, with an 88% drop in operating profit, particularly struggling in the U.S. and Chinese markets [4]. - In the U.S., sales of the Rogue SUV fell nearly 10%, and the Titan pickup was discontinued, while in China, sales plummeted by 12.2% [4]. Competitive Landscape - Nissan's electric vehicle, Leaf, has been outperformed by competitors like BYD and Tesla in key areas such as range and acceleration [4]. - The company's CHAdeMO charging standard has been phased out in favor of more widely accepted standards, and the new electric vehicle Ariya has seen poor sales performance [4]. Collaboration and Partnerships - Nissan's collaboration with Honda has ended due to fundamental disagreements over platform control and technology integration [5]. - The company is exploring potential partnerships with firms like Foxconn and some U.S. tech companies, but these discussions are still in early stages [5]. Future Outlook - Nissan views the Chinese market as crucial for its recovery, despite a significant drop in sales from 1.13 million units in 2018 to under 700,000 units [6][7]. - The company is adapting to local market dynamics by decentralizing R&D to Chinese teams and planning to launch 10 new energy models by 2027 [6]. - The success of Nissan's "Re:Nissan" plan hinges on its ability to tell a new story in the smart electric vehicle era within three years, or it risks irreversible decline [6].