On the Dash:
- Nissan plans to expand exports of China-developed vehicles from two models to five, targeting 12 regional market clusters in the near term.
- The automaker lowered its fiscal 2027 global sales forecast for the second time in months, from 3.15 million to between 2.97 million and 3 million vehicles.
- Nissan reported a 96% year-over-year drop in second-quarter operating profit to 2.1 billion yen, while CEO Ivan Espinosa said the company’s turnaround plan has generated 365 billion yen in savings.
Nissan Motor plans to increase its exports of vehicles developed in China from two models to five and is targeting 12 regional market clusters in the “very near term,” CEO Ivan Espinosa told CNBC on Wednesday, as the automaker cut its annual sales forecast for the second time since August.
Espinosa told CNBC’s “Squawk Box Europe” that Nissan can defend itself against aggressive Chinese rivals by using the same elements that drive them, namely speed, cost and good technology, and that the strategy draws on the technology, lower costs and faster development processes of its China operations.
Nissan lowered its global sales outlook for the fiscal year ending in March 2027 to between 2.97 million and 3 million vehicles from 3.15 million, after an August revision from 3.3 million vehicles. The company said weaker demand, a faster-than-anticipated shift to new energy vehicles and intensifying competition in China are putting greater pressure on sales than it initially anticipated, even as its restructuring efforts show progress in the U.S. and Japan.
According to FactSet, analysts expected second-quarter operating profit of 54.9 billion yen, but Nissan reported a 96% drop from a year earlier to 2.1 billion yen ($13 million). The company said the decline reflected the loss of a year-earlier benefit from lower U.S. emissions-related expenses. Net revenue rose 8.2% to 3.1 trillion yen, largely in line with consensus, and Nissan maintained its full-year operating profit and net cash guidance.
Espinosa, who became CEO in April 2025, said Nissan’s turnaround plan, which reduces its global manufacturing footprint and cuts its workforce by 15%, has produced 365 billion yen in savings after about 18 months.
Other global automakers face similar pressure to build vehicles specifically for Chinese buyers. Volvo Cars CEO Håkan Samuelsson told said in October that selling global cars developed in Europe will not work in China and that the company needs regionally adapted models, after Volvo reported a swing to an operating loss in October, citing tough conditions in China and the U.S.
