Nissan has revised its earnings forecast for the 2024-25 financial year to reflect that it could lose up to £4.0 billion – nearly 10 times more than it had previously expected.
The firm had predicted a net loss of ¥80 billion (£426 million) for the year ended 31 March 2025 but has now adjusted this figure to between ¥700bn and ¥750bn (£3.7bn-£4.0bn).
This is a dramatic reduction on the near-¥427bn (£2.3bn) income that Nissan recorded a year ago.
It attributed the dramatic increase in its losses to the cost of the revival plan set out by incoming CEO Ivan Espinosa, including a ¥500bn (£2.6bn) reduction in the value of its production facilities and ¥60bn (£316m) in restructuring costs.
Last year, the company announced that it would cut 9000 jobs worldwide and it has yet to rule out shuttering its Sunderland factory as part of the restructure. Alan Johnson, the firm's senior vice-president for manufacturing, supply chain and purchasing, told MPs this week that the UK is "not a competitive place to be building cars", citing energy and labour cost, as well as the lack of a local supply chain.
Nissan said it will end the year with almost ¥1.50 trillion (£7.9bn) in its coffers, down slightly compared with the nearly ¥1.55tn (£8.2bn) that it had at the end of the 2023-24 financial year.
The firm also said it expects to end the year with ¥1.9tn (£10bn) in debt.
Speaking to media, including Autocar, last month, Espinosa laid out his turnaround plan for the ailing firm, starting with stabilising revenues and reducing costs. "Costs have to be improved both on the fixed and viable side," he said.
Performance officer Guillaume Cartier added that “product is central” to the company’s future. “When we have the right products, we have proven we can grow,” he said.
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