Nissan's Nightmare: Annual Loss Soars to $4.9 Billion Due to Massive Impairment Charges

Nissan Motor Company is expected to report a massive $4.9 billion loss for the fiscal year 2024–25, according to a report by Reuters. The Japanese automaker is grappling with significant impairment charges, falling global sales, and a major restructuring drive aimed at reshaping its operations.

This projected loss, one of the largest in Nissan’s history, underscores deep-rooted “structural inefficiencies” and “strategic missteps”, according to industry observers. A key factor behind the downturn is the collapse of a planned merger with Honda Motor Company—a deal once viewed as critical to strengthening Nissan’s position in an industry rapidly shifting toward electric vehicles and consolidated partnerships.

According to Reuters, the Nissan has recorded impairment charges totaling more than 500 billion yen across regions including North America, Latin America, Europe, and Japan. Additional restructuring expenses are expected to exceed 60 billion yen.

"We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets," said Ivan Espinosa, Nissan’s CEO, in a statement.

As part of its restructuring, Nissan plans to sharply reduce its production capacity and global workforce. While specific figures have not been disclosed, sources indicate that thousands of jobs may be cut as the company scales back operations worldwide.

Also Read: Job Cuts by Nissan: Nissan Plans To Cut Job and Production in US | Republic World

The automaker’s challenges come at a time of rapid transformation in the global automotive industry, with legacy carmakers racing to adapt to electrification, autonomous technologies, and new mobility trends. Although Nissan was an early leader in electric vehicles with the launch of the Leaf, it has struggled in recent years to maintain its edge in a market now dominated by more agile competitors.

Further details on Nissan’s financial performance and turnaround strategy are expected in its official earnings report that will be declared on May 13.