First-quarter revenue dropped 9.7%
By Kosaku NariokaFollow
Updated July 30, 2025 7:35 am ET
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Nissan has said it would slash 20,000 jobs over the four years through March 2028. Photo: dado ruvic/Reuters
Nissan 7201 -1.25%decrease; red down pointing triangle Motor suffered a fourth straight quarterly net loss, as U.S. tariffs added to challenges facing the Japanese carmaker as it took restructuring steps to turn around its business and reverse falling sales.
Chief Executive Ivan Espinosa on Wednesday estimated that U.S. tariffs would cost the company up to 300 billion yen, equivalent to $2.02 billion, for the current fiscal year, down from as much as Y450 billion projected previously. Exports from Japan and Mexico account for nearly 45% of Nissan’s U.S. sales.
The revised forecast came as Japan and the U.S. reached a trade deal last week, setting a 15% tariff on Japanese goods, including autos. The U.S. started imposing a 25% levy on finished foreign-made cars in early April.
Espinosa said that while a lower tariff alleviated the impact, the company will continue efforts to cut costs and reduce its tariff exposure. “We welcomed the improvement, but 15% is still a challenging number,” he said.
Espinosa replaced Makoto Uchida as the company’s chief in April, just weeks after Nissan scrapped a proposed merger with rival Honda Motor.
Nissan has said it would slash 20,000 jobs over the four years through March 2028 and aimed to reduce its global production capacity to 2.5 million units from 3.5 million units, excluding China. To achieve that, the company has been consolidating production sites to 10 from 17.
On Wednesday, it said that it plans to cease production at its Civac plant in Morelos, Mexico, by the end of March 2026, and that it will consolidate vehicle production in the country at its Aguascalientes complex.
Nissan earlier this month said it would stop making cars at its Oppama plant in Yokosuka, Japan, at the end of March 2028.
Net loss for the three months ended June was Y115.76 billion, equivalent to $779.7 million. That compared with net profit of Y28.56 billion in the year-earlier period and was narrower than analysts’ estimate for a Y139.3 billion loss in a poll by data provider Visible Alpha.
In the first three months of 2025, the automaker reported a net loss of more than $4.5 billion as it recorded restructuring expenses and wrote down the value of production assets in North America, Latin America, Europe and Japan.
First-quarter revenue dropped 9.7% to Y2.707 trillion, and operating results took a Y68.7 billion tariff hit, prompting Nissan to project an operating loss of Y180.00 billion for its first half.
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