Nissan’s fortunes shifting

Nissan has finally moved into growth mode after posting profits and forecasting delivery increases as chief executive Ivan Espinosa’s strategies gain momentum despite conflict in the Middle East and US tariffs.

The company anticipates global sales will grow by 4.7 per cent to 3.3 million vehicles in the current fiscal year ending March 31, 2027. They have contracted in seven of the past eight years.

Operating profit will more than triple to ¥200 billion, which is about NZ$2.19b. It expects to post net income of ¥20b as it gets back into the black, says Espinosa, pictured.

The recovery plan has led to factory closures, job reductions and cost-cutting across the board. “We’ve now moved into a growth phase,” he adds. “We are ahead of plan and the progress is visible.”

Espinosa credits the upswing to major restructuring, new product and a focus on better quality retail sales in key markets such as the US. The company forecasts North American deliveries to grow by 2.2 per cent to 1.32 million units in the current financial year. Sales in that region dropped by 0.9 per cent in 2025/26.

His assessment comes despite lingering pain from America’s tariffs and pressures from the war on Iran, but Nissan is building momentum thanks to a three-year recovery plan.

Boosting sales is essential to securing top-line revenue as a counterpoint to the cutbacks to rebalance the company’s cost structure and balance sheet, reports Automotive News.

Under Espinosa’s Re:Nissan revival plan, ¥500b in costs have been slashed. This has included closing seven of 17 factories around the world, cutting 20,000 jobs and reducing production capacity.