Nissan plans to reduce 10,000 more jobs as it struggles with EV China and Trump trade war

Nissan plans to cut 10,000 more jobs worldwide, reported Japanese media on Monday, a day before the vehicle manufacturer that could be reported Record of annual loss of about $ 5 billion.

Public broadcaster NHK said that the decision, in addition to a November announcement that would reduce 9,000 positions, means that Nissan aims to reduce their total labor force by 15 percent.

Nissan, whose merger collapsed with Honda at the beginning of the year, refused to comment on the reports that also appeared in the Nikkei Daily business.

The company, one of the 10 best sales automobile manufacturers, is very debt and is dedicated to a business restructuring plan.

Like many colleagues, Nissan finds it difficult to compete against home electric vehicle brands in China, while their benefits are now with a greater threat of United States trade rates.

The possible merger with the Honda Japanese opponent had been considered a potential lifestyle.

But the talks crashed in February after Honda proposed to make Nissan a subsidiary instead of integrating under a participation company.

Last month, Nissan issued a strong profit warning, saying that he hopes an annual net loss of 700-750 billion yen (4.8 to $ 5.1 billion) for the year 2024-25.

Its previous net loss of the worst year was 684 billion Yen in 1999-2000, during a financial crisis that led to his rocky collaboration with the French automobile manufacturer Renault.

Since then, Nissan has faced more speed blows, including the 2018 arrest of former Cap Carlos Ghosn, who later fled Japan hidden in an audio team box.

The car maker, whose actions have closed almost 40 percent last year, appointed a new CEO in March.

The qualifications agencies have reduced the firm to the junk, and Moody cited its “weak profitability” and its “portfolio of aging models”.

And this month, Nissan planned the plans, only recently agreed to build a $ 1 billion battery plant in southern Japan due to the hard “business environment”.

Threatening rates

An additional head is the 25 percent rate imposed by President Donald Trump on all imported vehicles in the United States.

Of all the main manufacturers of Japan, Nissan is likely to be the most severely affected, he told AFP the Bloomberg Intelligence Tatsuo Yoshida analyst.

He said that his clientele has been historically more sensitive to the price than that of his rivals.

So the company “cannot overcome the costs of consumers to the same extent as Toyota or Honda without suffering a significant loss in sales units,” he added.

Although Nissan’s electric vehicle list has failed to win the Chinese market, the company has recently announced investments with 10 billion yuans ($ 1.4 billion) in the second largest economy in the world.

The highly competitive EV market in China is the largest in the world, directed by Shenzhen’s Carmaker Byd.

One of the potential solutions for Nissan could be the Taiwanese Electronics Behemoth Hon Hai, better known as Foxconn, which mounts Iphones and is expanding to cars.

Foxconn said that in February he was open to buy Renault’s participation in Nissan, and this month he agreed to develop and supply an EV model to Mitsubishi Motors, a member of the Renault and Nissan alliance.

External help, Yoshida, is “very necessary” for Nissan, which can no longer be differentiated from his rivals by making internal efforts to save only costs.

This story originally presented to Fortune.com

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