Nissan is under pressure from a large loss of billions in its 2024 financial statements. The car brand is focusing on restructuring and new electric cars like the Ariya and a new version of the Leaf.
Nissan is in the midst of a serious financial crisis. The automaker is preparing its financial statements for 2024. It is expected to show a historically large loss.
The preliminary figures point to a net loss of between 32 and 35 billion kroner for the financial year that ended March 31.
That's a loss of up to 95 million kroner every single day. The focus is now on restructuring and the launch of new electric cars like the Ariya and an upcoming Leaf model.
The huge deficit is the largest in Nissan's history. The company itself points to several reasons. An ongoing restructuring plan is mentioned as a significant factor. Other unspecified factors also play a role.
A large part of the loss is due to write-downs. The value of assets such as factories and other investments has been adjusted downwards. This negatively affects the financial statements.
The automotive industry in general is under pressure. Many manufacturers and subcontractors are struggling with the economy. Nissan is no exception.
Competition is fierce, especially from new Chinese car brands. At the same time, the shift to electric mobility requires major investments.
Nissan: Restructuring and major challenges
Nissan must invest massively in the development of electric cars. This is necessary to keep up with the market.
Following the launch of the Ariya electric car, several new models are on the way. One of them is a direct replacement for the well-known Nissan Leaf.
Two Nissan executives have previously expressed great concern, stating that the company had "12-14 months to survive," underscoring the seriousness of the situation.
The current restructuring is not the first. A previous plan failed to turn around Nissan's fortunes.
In addition, plans for a merger with competitor Honda have collapsed, which was otherwise seen as a possible way forward.
Electric cars such as Ariya and new Leaf in focus
As a consequence of the economic situation and restructuring, Nissan is having to make cuts. At least 9,000 employees are expected to be laid off.
It is part of the effort to reduce costs. The goal is to make the company more profitable.
Despite the many challenges, there is optimism among management. Ivan Espinosa, the company's CEO, sees opportunities.
"Despite these challenges, we have significant financial resources, a strong product offering and the will to turn Nissan around in the coming period," he says.
The future will tell whether the current plan and the focus on electric cars can save Nissan. However, no car will be completely electric in Nissan's model range. Read more about it here .
