Nissan Cancels Kitakyushu EV Battery Plant Plan. Following a finalization of a location agreement in January, the project required a capital outlay of about 150 billion yen and was expected to create 500 new jobs. Despite this, in an ever-so-strange business environment, characterized by never having seen such dire straits, such as this year’s expected net loss of 750 billion yen, Nissan has decided to call off the project.
“We had high hopes, which makes this all the more disappointing,” said Nissan CEO Makoto Uchida and other senior officials as they informed Governor Hattori and Mayor Takeuchi that the planned construction in the Hibikinada district would no longer go ahead.
Although it was delayed, Nissan explained that its leading domestic plants, such as Nissan Motor Kyushu and Nissan Shatai, are still top of the list for global production. Nissan confirmed its pledge that production at these facilities be sustained.
Current situations for Nissan are among the toughest times in the company’s history, which hinge on massive financial struggles and extensive restructuring efforts. Nissan is expected to post a net loss of between 700 billion and 750 billion yen, or about 4.9 to 5.3 billion dollars, for the current fiscal year ending March next year. One of the reasons for the sharp drop is a global 2.6 billion pound impairment.
Consolidated sales revenue of Nissan in the first half of fiscal 2024 added up to 5.98 trillion yen, down 79.1 billion yen year-on-year. Operating profit plunged sharply from 32.9 billion yen to 32.6 billion yen after a decline of 303.8 billion yen, which brought the operating margin to an extremely thin 0.5%. The low margin is attributable to a deteriorated performance in the key business segments as a result of increased material costs, inconsistent foreign exchange, and the decline of demand for vehicles in key markets.
A comprehensive restructuring effort has been launched by Nissan in the wake of loss of perspective. The plan involves worldwide reduction of overall production capacity by 20% and termination of about 9,000 workers, primarily from overseas facilities. Also, Nissan is simplifying its production bases, reinvesting in high-margin products, and leaving some failing markets. Withholding the interim dividend renders the severity of the financial crisis clear. Nissan also revised its accepted figure for its full-year revenue by reducing it by 1.3 trillion yen to 12.7 trillion yen from its earlier estimation of 14 trillion yen.
The challenges manifested in substantial leadership change at the highest levels of the organization. Under the appointment that took effect on April 1, 2025, Nissan appointed Ivan Espinosa to the post of its new CEO, replacing Makoto Uchida as the CEO. Espinosa, who recently held the position of chief planning officer, has been instrumental in the creation of Nissan’s electrification programs and has helped form its global product plan. By including Espinosa, Nissan is trying to revitalize its declining performance, which is particularly urgent given its goal to eclipse rivals keen to accelerate into the burgeoning EV market.
It has stressed its continuous support for critical manufacturing hubs, especially in Kyushu and Tochigi, which play a critical role in the global supply system. Such facilities are expected to continue to be critical to manufacturing and development projects with a company whose footprint is being diminished in other areas.
