Nissan takes a $535 million quarterly hit, as tariffs bite

By Daniel Leussink

YOKOHAMA, Japan, July 30 (Reuters) - Embattled automaker Nissan 7201.T reported a $535-million quarterly loss on Wednesday, hit by U.S. tariffs, restructuring and lower sales volumes and said it would stop production at a plant in Mexico.

Japan's third-largest automaker is in the midst of a sweeping turnaround plan and has pledged to close some seven plants globally and lay off 15% of its workforce.

Nissan reported an operating loss of 79.1 billion yen ($535 million) for the quarter from April to June, narrower than an average estimate for a loss of 123.9 billion yen in an LSEG survey of five analysts.

The result compared to a company forecast for a loss of 200 billion yen when it reported results for the previous financial year in May.

"We're still in the early stages of our recovery," CEO Ivan Espinosa told a press conference after the results release, adding that the automaker was making progress in cutting costs.

In a statement, Nissan said it would stop output at its Civac plant in Mexico by March 2026 in its global restructuring plan, integrating vehicle production from that plant to its Aguascalientes complex during the current financial year.

The news comes after Nissan said this month it would stop producing cars at two domestic sites, namely its Oppama plant, by March 2028, and Nissan Shatai's 7222.T Shonan factory, by March 2027.

The automaker first started operations at the Civac plant in 1966 in its initial expansion outside Japan. It has turned out more than 6.5 million vehicles so far, Nissan said.

The automaker's drastic restructuring effort aims to slash costs and restore profitability and performance in key markets such as the United States and China.

The plan includes slashing global production capacity to 2.5 million vehicles from 3.5 million and manufacturing sites to 10 from 17.