Nissan’s in trouble. The Japanese car giant is considering selling its headquarters in Yokohama. This isn’t a joke. It’s part of a desperate plan to survive heavy losses and massive restructuring costs.
The company might need an extra $418 million to cover these costs. This includes closing factories and other projects. On May 13, Nissan announced shocking financial results: a net loss of over $6.7 billion in the fiscal year ending in March. This includes a $4.6 billion loss from asset depreciation and $418 million in losses from restructuring.
Financial Struggles
Nissan’s Chief Financial Officer, Jeremie Papin, says they can’t predict this year’s financial results yet. They still need to calculate additional restructuring costs and the impact of US tariffs.
The company might sell its headquarters, but then lease it back to keep employees working there. However, some executives disagree with this plan.
Nissan, Japan’s third-largest car manufacturer, needs cash badly. They’ve announced plans to close 7 out of 17 factories worldwide and cut over 20,000 jobs. Sluggish car sales in China and the US, combined with US import tariffs, have forced Nissan to restructure its global operations. The goal is to return to profitability by next year.
What’s Next?
Will selling its headquarters help Nissan escape this crisis? We’ll have to wait and see.