TOKYO, October 30, 2025 – Nissan Motor (NSANY) expects a 1.8 billion annual operating loss amid US tariff pressures and supply chain disruptions.
The forecast highlights deepening challenges for Japan’s second-largest automaker as it grapples with restructuring costs and geopolitical trade tensions that could further pressure margins.
Key Takeaways
- Nissan forecasts 275 billion yen operating loss for fiscal year
- US tariff concerns weigh on automaker’s outlook
- Supply chain risks add pressure to restructuring efforts
Market reaction & context
Nissan’s projected 275 billion yen (1.82 billion) operating loss for the current fiscal year underscores the automaker’s struggle to return to profitability 1. The loss forecast comes as the company continues a major restructuring program that has already seen significant job cuts and plant closures.
The Japanese automaker’s difficulties contrast sharply with rivals like Toyota, which has maintained stronger profitability despite industry headwinds. Nissan previously posted a record 5.3 billion net loss and announced plans to cut 20,000 jobs as part of its turnaround efforts 2.
Detailed analysis
The operating loss projection reflects mounting pressure from potential US tariffs and ongoing supply chain vulnerabilities that have plagued the automotive sector. Nissan has been particularly exposed to trade tensions given its significant manufacturing footprint across multiple regions.
Earlier this year, the company warned of substantial losses while shuttering seven plants by fiscal 2027 as part of its comprehensive restructuring plan 3. The automaker has been working to streamline operations and reduce costs following years of declining market share and profitability challenges.
Outlook & management response
Supply chain risks remain a key concern for Nissan’s management as the company navigates an increasingly complex global trade environment. The automaker’s exposure to cross-border manufacturing and sales makes it particularly vulnerable to tariff implementation.
The projected loss represents a significant setback for Nissan’s recovery plans, which have included aggressive cost-cutting measures and workforce reductions. Industry analysts have expressed caution about the company’s ability to return to sustainable profitability amid continued market pressures.
Conclusion
Nissan’s 1.8 billion operating loss forecast underscores the challenges facing legacy automakers in an evolving global trade landscape. The combination of US tariff concerns and supply chain risks threatens to prolong the company’s restructuring timeline.
Investors will likely monitor Nissan’s quarterly results closely for signs of operational improvement and management’s ability to navigate trade policy uncertainties while executing its turnaround strategy.
Not investment advice. For informational purposes only.
References
1(October 30, 2025). “Nissan forecasts 1.8 billion annual operating loss as US tariffs weigh”. Reuters. Retrieved October 30, 2025.
2(May 13, 2025). “Nissan Posts 4.5 Billion Annual Net Loss, to Cut 20,000 Jobs”. Industry Week. Retrieved October 30, 2025.
3(July 31, 2025). “Nissan Eyes US1.2 Billion Loss, Will Shutter 7 Plants by FY2027”. Mexico Business News. Retrieved October 30, 2025.