Nissan's board chair, Yasushi Kimura, emphasized the need for management changes to navigate industry-wide challenges and improve the company's performance.

Nissan has forecasted a staggering annual net loss of between 700 and 750 billion yen, equivalent to approximately $4.9 billion to $5.3 billion, for the financial year ending March 31, 2025, largely due to significant asset impairments and restructuring costs.

Newly appointed CEO Ivan Espinosa, who took over in April, is focused on stabilizing the company and enhancing its competitiveness by reducing vehicle development times and accelerating the launch of new models.

The restructuring plan includes thousands of job cuts and significant debt management, with losses attributed to costs associated with the ongoing relaunch strategy.

The uncertainty surrounding U.S. trade policies and the automotive market has led Nissan to adopt cautious and unclear future strategies.

Despite announcing a record loss, Nissan's shares saw a slight increase of 1.9% on April 25, 2025, indicating some investor confidence in the company's restructuring efforts.

As part of its restructuring efforts, Nissan aims to address weak sales, particularly in China, where unit sales plummeted by 24.1% in the last financial year.

In response to the challenges posed by tariffs, Nissan is adjusting its production strategy, which includes halting sales of two models manufactured in Mexico and reconsidering output levels at its Tennessee plant.

While focusing on appealing to car enthusiasts, Nissan acknowledges the necessity for a refreshed vehicle lineup to attract a wider customer base amid rising prices and government tariffs.

The automaker, ranked among the top 10 globally, is grappling with substantial challenges, including heavy debt, declining sales in critical markets like China, and the adverse effects of U.S. tariffs on imported vehicles.

Executives have warned that without significant changes or support, Nissan has only about 12 to 14 months to survive, raising concerns about potential bankruptcy.

Speculation about potential partnerships or investments from companies like Honda or technology firms such as Apple has emerged as Nissan seeks solutions to its financial troubles.