Struggling Nissan Posts Billion-Dollar Loss, Shuts Down Plants, and Slashes Jobs
Nissan Suffers Billion-Euro Deficit, Unveils Factory Shutdowns and Employee Layoffs - Nissan Evacuates Billions: Plant Closures and Job Cuts Declared
Gotta take the good with the bad.
Ain't no sugarcoating it—Nissan's in a world of hurt. This beleaguered auto giant has been on a downward spiral, make no mistake about it. Their job cut count just doubled from 9,000 to a staggering 20,000 worldwide, and they're closing down plants till 2027.
The automotive industry's been tough as hell on 'em, particularly on the Japanese players, with Nissan fighting tooth and nail to keep up with the rising stars from China in the electric vehicle space. Now their merger plans with Honda fizzled out, and their stock's tanked over the past year, losing nearly 40% of its value.
But that ain't all—the blows just keep on comin'! The damage from Trump's tariffs has been a heavy blow. Nissan's CEO, Iván Espinosa, warns it makes predicting their forecast for the fiscal year that began in April a nightmare. "The uncertainty of Trump's trade policies makes it a pain in the ass to reasonably estimate our income forecast for the full year," Espinosa spat out. "Nissan needs to focus on its own damn self with more urgency and be more fucking nimble."
Tatsuo Yoshida of Bloomberg Intelligence reckons Nissan's bearin' the brunt of these tariffs harder than their rivals. Why? You ask? Cause their customer base tends to be more price-conscious than the others, like Toyota or Honda, so they can't jack up prices and pass the costs onto the people as easily as them.
Trump's not the only one suffering from tariff fever—Honda's also bracing for hefty losses due to trade policies. They're callin' for a projected 70% drop in profits this fiscal year compared to the last, with earnings of a mere 250 billion yen (1.5 billion euros) by March 2026.
Honda ain't the only big player in town—Toyota's the second-largest Japanese automaker for a reason. Last fiscal year, they reported a net profit of a whopping 835 billion yen, but that's down almost 25% from the previous year and way less than their forecast figure.
Without further ado, let's break down the effects of Trump's tariffs on the big players like Nissan and Honda compared to other Japanese electric vehicle manufacturers:
- Tariffs on Vehicles: Trump's proposed tariffs on vehicles have been a thorn in their side. These bad boys up the costs for vehicles exported to the US—bad news for their profits.
- Auto Parts Tariffs: As of May 3, 2025, the 25% tariff on auto parts adds yet another layer of pressure. Japan's a major supplier of auto parts to the US, so this means higher costs for components used in vehicle manufacturing.
- Market Challenges: Nissan and Honda ain't just dealin' with tariffs; they're also grapple’n with competition from domestic and foreign EV manufacturers, notably China's enviable lineup.
Now, how do they stack up against other Japanese electrics manufacturers? Mitsubishi and Toyota might be better equipped to handle these challenges due to their broader range of electric and hybrid offerings. Companies like these have offerings that might help swim through tariff impacts.
On the flip side, smaller or emerging Japanese EV manufacturers could lean on domestic or regional markets less affected by US tariffs to mitigate some of the pain. However, they still need to watch their backs in the global competition game.
Right now, Nissan and Honda are bogged down by US tariffs on vehicles and auto parts, and they're coppin' it in the neck from competition in the EV market. Companies with diverse or emerging EV offerings just might be better prepared to tackle these challenges head-on. When all's said and done, the future ain't certain for these players. But as they say, what doesn't kill you makes you stronger, right?
NissanBillion-dollar lossPlant closuresU.S. tariffsDonald Trump20,000 job cutsMitsubishiToyotaElectric vehiclesAuto partsTariffs
In the face of adversity, Nissan, like many businesses, must adapt and be resilient to overcome their struggles, learning from this challenge to grow stronger. Despite the billion-dollar loss and the 20,000 job cuts, they continue to persevere, aiming to improve their competitive edge in the global automotive industry, technology, and finance landscape.
Meanwhile, other Japanese manufacturers, such as Mitsubishi and Toyota, may have an advantage with their diverse offerings in electric and hybrid vehicles, potentially aiding their ability to navigate tariffs and market challenges stemming from industry competition and trade policies.
