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In attempts to navigate these choppy waters, Nissan has announced a series of drastic cost-saving initiatives. This includes closing multiple factories, accounting for at least three more shutdowns following the closure of four factories last year. The company's strategy involves a veil of secrecy surrounding its operational cuts, leading to confusion among investors and the general public.
Nissan's management team is aiming for $4.2 billion in savings by the 2026 fiscal year, yet the reality is sobering. The company's operating profit plummeted from approximately $4.7 billion to $663 million year-on-year, suggesting that Nissan may struggle to remain profitable through 2025, as they continue to face mounting operational costs and a challenging market environment.