Prominent car manufacturer, Nissan has recorded a net loss of 700 billion yen to 750 billion yen ($4.91 billion-$5.26 billion) for its financial year ending in March.
According to company records released on Thursday, Nissan’s loss is due to impairment charges as the automaker restructures following the arrival of new CEO Ivan Espinosa.
This is the company’s largest ever loss and comes at a time the company attempts to turn around its fortunes by cutting jobs, reducing capacity and closing plants.
According to the records, Nissan booked impairments of more than 500 billion yen in North America, Latin America, Europe and Japan after reviewing production assets with additional restructuring costs totalling more than 60 billion yen.
“We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets,” CEO Espinosa, who took the helm this month, said in a statement.
Failed Merger
Nissan ended merger talks to forge a $60 billion car company with Honda in February due to Honda’s proposal to make the struggling Nissan a subsidiary. Nissan would declare its full financial statement on May 13.
