Nissan faced sharp criticism from shareholders during its annual general meeting Tuesday as the company struggles with a deepening financial crisis. The automaker, Japan’s third largest, reported a $4.5 billion net loss last fiscal year and is projecting a 200 billion yen ($1.38 billion) loss in the first quarter. It has yet to provide a full-year earnings forecast.
The meeting marked the first for new CEO Ivan Espinosa, who took over in April amid steep challenges. Nissan’s shares have declined about 36% over the past year, and the company has suspended dividend payments.
Espinosa announced plans to cut costs by closing seven plants and reducing the workforce by roughly 20,000 jobs, or 15% of its total employees. Some shareholders criticized the board for shifting responsibility to frontline workers while protecting executive positions, calling for a leadership overhaul to restore trust.
Shareholders also voted down several company-opposed proposals, including one from activist investor Strategic Capital urging action on Nissan’s listed subsidiary Nissan Shatai. The proposal would have required Nissan to annually review and disclose its relationship with its subsidiaries, but the board argued that such changes would limit its operational flexibility. The detailed vote breakdown is expected later.
Tokyo regulators and the stock exchange are increasingly pressuring Japanese companies to resolve “parent-child listings,” where parent companies own significant shares in listed subsidiaries, which can hurt minority shareholders and governance. This pressure led Toyota to announce plans to take private its listed subsidiary Toyota Industries in a $33 billion deal.
Nissan owns 50% of Nissan Shatai, which manufactures vehicles for the automaker. Strategic Capital holds a 3.5% stake in Nissan Shatai and a smaller stake in Nissan itself, enabling it to submit proposals at shareholder meetings.
With shareholder discontent growing and financial losses mounting, Nissan’s leadership faces mounting pressure to implement reforms and return the company to profitability.
