TOKYO– Nissan has announced it may allow the Chinese state-owned company Dongfeng to use its factories worldwide as part of a major shift in its operations. The Japanese automaker told the BBC it could bring Dongfeng into its global production network.
Earlier this week, Nissan revealed plans to cut 11,000 jobs and shut down seven plants, though the locations of these cuts have not been confirmed.
At a Financial Times conference, Nissan executive Ivan Espinosa reassured that there are no immediate plans to scale back work at the Sunderland plant. He said new car models are set to launch there soon.
This announcement comes during a time when trade between the UK and China is under scrutiny. The UK government recently responded to claims that its fresh trade agreement with the US could hurt China. Officials stated the deal does not block Chinese investment.
The new UK-US trade deal scaled back large tariff increases set by US President Donald Trump but added requirements for the UK to meet US security demands over steel and aluminum products. China’s representatives in London asked the UK for more details about the deal and said any agreement that harms China’s interests would see a response.
Nissan’s job cut plans follow 9,000 layoffs announced last November. In total, cuts now affect 15% of Nissan’s workforce as the company tries to save money and reduce production by 20%.
Nissan has struggled in major markets like the US and China, facing stiff competition and pressure on prices. In China, Nissan has worked with Dongfeng for more than two decades. Together, they build vehicles in Wuhan.
Nissan employs about 133,500 people worldwide, including 6,000 in Sunderland.
The company has also faced several changes in leadership. Talks about merging with Honda failed earlier this year when the two companies couldn’t agree on terms. After that, Ivan Espinosa replaced Makoto Uchida as Nissan’s chief executive.
Nissan Struggling
Nissan is facing severe financial difficulties in 2025, marked by significant losses and drastic cost-cutting measures. The company reported a net loss of approximately ¥671 billion ($4.5 billion) for the fiscal year ending March 2025, with projections of losses up to ¥750 billion ($5.26 billion).
This is a sharp reversal from earlier expectations of a $560.7 million loss, driven by major asset impairments, restructuring costs, and declining sales. Global retail sales dropped 2.8% in fiscal 2024, and free cash flow turned negative, exacerbating the crisis.
To address these challenges, Nissan has announced aggressive measures, including cutting 20,000 jobs globally (following an earlier reduction of 9,000) and closing seven factories by 2027 to save ¥500 billion ($3.3 billion).
The company is also streamlining its model lineup and reducing production capacity by 20%. External pressures, such as intense competition from Chinese electric vehicle manufacturers and potential U.S. tariffs under the Trump administration, are further complicating recovery efforts
Nissan’s financial health has been downgraded by Fitch Ratings to ‘BB’ with a negative outlook, reflecting worsening market conditions. Posts on X and other sources suggest a dire situation, with some executives reportedly stating in 2024 that Nissan had “12 to 14 months to survive” without significant intervention. A failed merger with Honda and the sale of part of its Mitsubishi stake have added to strategic challenges.
Despite these struggles, some analysts argue Nissan’s brand and assets could prevent immediate collapse, though recovery hinges on boosting sales, reducing costs, and navigating global trade and competitive pressures. Without swift and effective action, Nissan’s long-term viability remains uncertain.
Nissan Sales in Thailand
Nissan has reported a significant downturn in its Thailand sales for the first quarter of 2025, reflecting broader challenges in the country’s automotive sector. According to industry data, Nissan sold approximately 4,000 vehicles in Thailand from January to March 2025, a sharp decline from the 16,423 units sold throughout 2024. This drop aligns with a 6.5% year-on-year decrease in Thailand’s overall vehicle sales, totalling 153,193 units in Q1 2025, as reported by the Federation of Thai Industries (FTI).
The slump in Nissan’s Thai market performance comes amid a 10% sales decline in the first two months of 2025 compared to the same period last year, with February alone seeing a 6.68% drop in domestic car sales to 49,313 units.
Industry analysts attribute this to tightened lending standards by banks and a sluggish economic recovery, which have dampened consumer demand for new vehicles. Nissan’s struggles are compounded by increased competition from Chinese automakers, who have been aggressively expanding their presence in Thailand, poaching dealerships and capturing market share.
Despite these challenges, Nissan is investing in Thailand’s automotive future, with plans to produce a compact passenger car as part of a 29 billion baht ($700 million) capacity expansion. However, the company faces an uphill battle to regain its footing in a market projected to produce 1.5 million units in 2025, a figure unchanged from 2024’s output, which saw a 20% decline.
