Nissan may sell HQ as it eyes extra 60 bil. yen restructuring costs
Baku, May 24, AZERTAC
Nissan Motor Co. is considering selling its headquarters building in Yokohama, near Tokyo, to help cover costs related to plant closures and other restructuring efforts, sources familiar with the matter said Friday.
According to Kyodo News, the struggling automaker may also book an additional 60 billion yen ($418 million) in restructuring costs this fiscal year as it pushes ahead with its revamp plans, according to records from a meeting with analysts last week on its latest earning results.
Nissan announced on May 13 that it posted a net loss of 670.9 billion yen in the fiscal year ended March after recording an impairment loss of 460 billion yen and 60 billion yen in restructuring costs under its reform plans.
The carmaker did not issue an earnings forecast for the current fiscal year, as additional restructuring costs and the impact of U.S. tariffs have yet to be factored in, Nissan Chief Financial Officer Jeremie Papin said at a press conference that day.
Even if it sells its headquarters, Nissan may consider leasing back the office space. But it remains unclear whether the company will ultimately go ahead with the sale as some executives oppose the idea, the sources said.
Japan's third-biggest automaker by volume is in need of funds, having announced that it will shut seven of its current 17 auto assembly plants and cut 20,000 jobs globally.
Pressured by faltering vehicle sales in China and the United States, coupled with a series of U.S. tariffs, Nissan is rushing to streamline its global operations to return to profitability in the next fiscal year.
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