Nissan Posts Biggest Loss in 20 Years, Unveils Turnaround Plan
- Impairment charges for restructuring steps hit profitability
- New mid-term plan seeks to improve profitability, cut models
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Nissan Motor Co. reported a 671 billion yen ($6.2 billion) net loss for the latest fiscal year and unveiled a plan to turn the carmaker around by eliminating about 300 billion yen 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 yen 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% 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.