Nissan contemplates selling its headquarters situated in Yokohama.
Nissan Motor Co. is contemplating the sale of its headquarters building in Yokohama, Japan, as part of its ongoing restructuring efforts. The company, which sustained a consolidated net loss of 670.8 billion yen in fiscal 2024 due to weak sales in China and the United States, is seeking to cover additional restructuring costs of approximately 60 billion yen by offloading certain assets.
Nissan's headquarters building, believed to be valued at over 100 billion yen, might be among the assets to be sold. The company is considering adopting a "sale and leaseback" approach, which would involve selling the property and then leasing it back to maintain its use as the headquarters.
In order to cut costs, Nissan plans to shutter seven plants worldwide by fiscal 2027. The potential proceeds from the sale of its headquarters could help offset these closure expenses. The automaker is also reducing its global production capacity by 20%, aiming to lower it from 5 million units to 4 million units by the fiscal year 2026.
Nissan seeks a total cost savings of 500 billion yen by fiscal year 2026, with the objective of achieving operating profitability by fiscal year 2026 through these restructuring measures and the launch of new vehicle models. However, it remains uncertain whether Nissan can successfully implement its recovery plan, partly due to potential long-term effects of U.S. President Donald Trump's tariffs.
[Sources: The Jiji Press, Ltd.]
[Photo: Reuters]
Tags: Yokohama, Japan, Nissan, Headquarters, Building, Nissan Motor
- Nissan's restructuring efforts include the possible sale of its valued headquarters building in Yokohama, Japan, to cover additional costs and offset closure expenses of seven plants worldwide.
- The potential sale of the headquarters building could help Nissan achieve its goal of lowering global production capacity by 20%, aiming to reduce production from 5 million units to 4 million units by fiscal year 2026.
- Amidst economic and industry challenges, such as weak sales in key markets, Nissan aims to achieve operating profitability by fiscal year 2026, with the sale of its headquarters potentially contributing to the target total cost savings of 500 billion yen.
