Nissan Reports Losses of €1.254 Billion and Puts Headquarters Up for Sale

Japanese automotive firm Nissan reported losses of 221.9 billion yen (approximately €1.254 billion) in its first fiscal half (April to September), compared to a profit of 19.2 billion yen in the same period last year.

The company attributes these losses to decreased income due to asset impairments and restructuring costs of associated companies. As a measure to optimize non-strategic assets, the firm decided to sell and subsequently lease back its headquarters in Yokohama for 97 billion yen (€547 million) to reinvest the proceeds in future growth.

The firm expects strong demand for new products to drive recovery in the second half and aims to reach breakeven in annual operating profit before tariff impacts.

"The first half results reflect the challenges we face but confirm that Nissan is firmly on the path to recovery. The second half will present its own challenges, but with focus, discipline, and ongoing actions, I am confident we will achieve better results," stated Nissan's President and CEO, Iván Espinosa.

During this period, consolidated net revenues stood at 5.6 trillion yen (€31.649 billion), compared to nearly 6 trillion yen (€33.909 billion) in the same period last year, a 6.66% year-on-year decrease.

Meanwhile, Nissan reported a "solid" financial position with total liquidity of 3.6 trillion yen (€20.344 billion), including 2.2 trillion yen (€12.432 billion) in gross cash as of September.

Alongside the first half results, Nissan provided an update on its ongoing Re:Nissan plan, reaffirming its commitment to achieving a positive operating profit in the automotive sector and free cash flow by fiscal year 2026.

The company has identified 200 billion yen (€1.130 billion) in potential variable cost savings, driven by thousands of innovative ideas now moving from concept to implementation, ensuring sustainable savings without compromising quality, safety, or performance.

In this regard, Nissan explained that fixed cost reductions are "progressing rapidly." The Japanese firm has saved over 80 billion yen (€452 million) in the first half and expects to exceed 150 billion yen (€847 million) by the end of the fiscal year, confident of reaching its target of 250 billion yen (€1.412 billion) by fiscal year 2026.

Additionally, non-strategic assets are being optimized, including the sale and subsequent leaseback of Nissan's global headquarters in Yokohama for 97 billion yen (€547 million).

As part of the transaction, Nissan will enter into a 20-year lease agreement, ensuring no impact on employees or operations and reaffirming the company's long-term commitment to Yokohama. The proceeds from the sale will be reinvested to modernize facilities and support future growth under the Re:Nissan plan.