Japanese automaker Nissan Motor Corp. reported deeper losses for the October-December quarter compared to a year earlier, as restructuring costs weighed on profitability. The Yokohama-based company posted a net loss of 28.3 billion yen ($185 million) for the quarter, roughly double the 14 billion yen loss recorded in the same period last year.
Quarterly sales fell 6% to nearly 3 trillion yen ($19.6 billion), down from 3.2 trillion yen a year earlier. Chief Executive Ivan Espinosa acknowledged that restructuring inevitably incurs costs, describing the results as expected. He noted that Nissan is on the right track but faces headwinds from US tariffs and other pressures on sales.
Nissan, which manufactures the Leaf electric car and Infiniti luxury models, aims to achieve an operating profit by the end of fiscal 2026. However, it expects an operating loss for the current fiscal year and projects a net loss of 650 billion yen ($4.2 billion) for the year ending March.
Espinosa, a Mexican with two decades at Nissan, has been leading a turnaround since taking the helm last year. The company has cut jobs, sold its headquarters building, and is closing its flagship factory in Oppama, Japan, as part of global production restructuring. Some analysts suggest that waning popularity of electric vehicles could hurt Nissan, which has been bullish on EVs. Espinosa countered that Nissan needs to do more to attract consumers to EVs, including developing new batteries, and expressed optimism about the new Leaf model.
Nissan shares gained 0.5% on Thursday, though they have slipped over the past year. The company maintains partnerships with French automaker Renault and domestic rival Mitsubishi Motors Corp.
