Nissan Motor Co. reported a ¥671 billion ($6.2 billion) net loss for the latest fiscal year and unveiled a plan to turn the carmaker around by eliminating about ¥300 billion in annual fixed costs, cutting capacity and reducing the number of vehicle models.
The result, the first loss in a decade and the biggest in 20 years, includes restructuring and impairment charges of ¥603 billion for the year that ended in March, the Yokohama-based company said Thursday. The four-year plan calls for production to be cut by 20 percent to about 5.4 million vehicles a year, and includes the closing of Nissan’s Barcelona plant in addition to one it is shuttering in Indonesia.
The reorganization is part of a broader push by Nissan and alliance partners Renault SA and Mitsubishi Motors Corp. to focus on costs and profitability to weather a collapse in car demand due to the coronavirus pandemic. Nissan has been in turmoil since the November 2018 arrest of former Chairman Carlos Ghosn, who had pushed for volume growth. This all comes as the industry is being disrupted by the shift to electric vehicles and autonomous driving.