NISSAN’S CEO has announced massive changes to its production and workforce as the auto company struggles to bring in sales.
The car manufacturer estimates a roughly $5 billion loss.
The auto manufacturer will be slashing nearly 15% of its global workforce — about 20,000 employees — after a steep decline in vehicle sales, as reported by The Associated Press.
“We have a mountain to climb,” said Nissan’s Chief Executive Ivan Espinosa.
“Starting today, we build the future for Nissan.”
Espinosa took over for the company’s former CEO, Makota Uchida, after a much-anticipated merger with Honda fell through.
Nissan leadership has welcomed the new CEO and his lofty plans to bring the car company back to its former glory.
“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” Espinosa said.
“All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026,” he added.
Nissan also said it would reduce the number of its auto plants to “enhance performance” and build a “more resilient business” that will adapt to the uncertainty of the auto industry, as reported by The Associated Press.
There will only be 10 operating auto facilities instead of the former 17.
The company suffered a loss of 670.9 billion yen or $4.5 billion for the fiscal year through March, as reported by The Associated Press.
Nissan claimed that part of the reason for the massive decline in sales was President Trump’s tariffs on auto imports.
Several automakers, including Nissan, are trying to shift production to the United States rather than abroad in Mexico and Canada to avoid the new charges.
In April, the Nissan CEO had big plans to revive the car company and bring traffic back using new technologies, new strategies, and a new focus on cost reduction.
The CEO is hoping to strengthen its partnerships, such as the one with Renault SA of France in Europe and Dongfeng Nissan in China, as reported by The Associated Press.
New Nissan and Infiniti lineup
Nissan announced it will be introducing several new models:
Nissan LEAF (third generation) Nissan Rogue (fourth generation) Nissan EV Nissan INFINITI FX Nissan INFINITI QX65Automakers are facing the pressure to welcome the electric vehicle revolution — and Nissan is no exception.
Nissan revealed that there will be a new version of the company’s electric vehicle, the Nissan Leaf, coming in June 2026.
Espinosa also plans to keep investing in internal combustion engines, which use renewable or alternative fuels to run along with traditional gasoline or diesel.
Despite these plans, Nissan’s former CEO Carlos Ghosn said the company is in a “desperate situation” that will be hard to bounce back from.
Ghosn said Nissan’s leadership has not been quick to make important decisions, like the expected Nissan-Honda merger, which has ultimately jeopardized the future of the company.
He said the company is now forced “to go begging for help from one of its main competitors in Japan,” as reported by Auto Evolution.
Nissan did not immediately reply to The U.S. Sun’s request for comment.
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