Nissan Motor Announces Detailed Structural Reform Plan

Nissan recently announced a detailed structural reform plan, which includes closing three factories in Thailand and other places and reducing production capacity in China by 30%. In addition, Nissan expects to record 100 billion yen in structural reform expenses in fiscal 2024 (ending March 2025) and add related expenses in the next fiscal year and beyond. These measures will put pressure on the company's performance. Nissan also lowered its full-year outlook for fiscal 2024, expecting net revenue of 12.5 trillion yen and operating profit of 120 billion yen. The company expects a net loss of 80 billion yen in fiscal 2024. In order to promote performance recovery, Nissan plans to cut production capacity by 20% (about 1 million vehicles) and lay off 9,000 employees worldwide. In the Chinese market, Nissan plans to cut production capacity by 500,000 vehicles and plans to close a passenger car plant in Jiangsu Province in 2024, reducing annual production capacity in the Chinese market to 1 million vehicles.