Nissan Motors Reports Decline in Profitability, Strategic Measures in Place

Nissan Motors ( (NSANY) ) has released its Q3 earnings. Here is a breakdown of the information Nissan Motors presented to its investors.

Nissan Motor Co., Ltd. is a global automotive manufacturer based in Japan, known for producing a wide range of vehicles and automotive parts, with operations spanning across various international markets.

In its latest earnings report for the nine months ended December 31, 2024, Nissan reported a challenging financial period with a decline in net sales and significant reductions in operating income. The company is implementing strategic measures to stabilize its business and improve cost competitiveness amidst market fluctuations and inflationary pressures.

The key metrics from Nissan’s financial performance include net sales amounting to ¥9,143.2 billion, a slight decrease of 0.3% compared to the previous year. Operating income plummeted by 86.6% to ¥64.0 billion, primarily due to reduced sales volume and increased sales incentives. Despite these challenges, the company saw an improvement in net non-operating income, though ordinary income decreased by 70.5% to ¥159.4 billion.

To address these issues, Nissan has announced initiatives such as reducing global production capacity by 20%, cutting down its workforce by 9,000 employees, and rationalizing its asset portfolio. These efforts are part of a broader strategy to enhance its brand power and ensure sustainable profitability by fiscal year 2026.

Looking ahead, Nissan remains focused on executing its mid-to-long-term business plan, “The Arc,” which aims to improve investment efficiency and product competitiveness through strategic partnerships. The company’s management remains cautiously optimistic about achieving a leaner and more resilient business structure capable of adapting to market changes.