Nissan eyes sale of valuable property it’s had since 2009
A report from Nikkei Asia citing sources familiar with the matter states that Nissan is considering selling its global headquarters in Yokohama, south of Tokyo, Japan, valued at over 100 billion yen ($698 million), by March 2026. Nissan would use the money to help cover restructuring costs associated with cutting its seven plants and cutting around 20,000 jobs. The automaker is expected to incur an additional 60 billion ($415.6 million) yen in restructuring costs for the current financial year, according to a Q&A session with the company and analysts on May 13.
“We plan to cover the restructuring costs through asset sales,” CEO Ivan Espinosa said, according to Nikkei Asia. Due to pending restructuring costs and U.S. tariff impacts, Nissan hasn’t yet released an earnings forecast for the year.
Nissan’s roadmap to recovery
Nissan is ailing after suffering a $4.5 billion loss last year, and current market conditions aren’t helping its prospects. Two of the seven factories Nissan is closing are domestic sites, with indicators that the Oppama and Shonan plants are on the chopping block, according to Motor1. The Tochigi facility isn’t being targeted because of its test course, which is vital for vehicle development. Nissan is also axing some new vehicles along with six platforms, leaving the company with seven platforms, down from 13. Autoguide reports that the manufacturer is simplifying vehicle architectures to reduce parts complexity by 70% using reassigned members from its research and development department.
Nissan states that its recovery plan, named Re:Nissan, targets savings of more than $3 billion to return to profitability by the 2026 fiscal year. Nissan’s headquarters have been in Yokohama since 2009, when it moved from Tokyo’s Ginza district. Nissan told Autoblog that it’s “considering all possibilities to recover its business performance, but there are no specifics to share at this time.”
“In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume. As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” said Nissan CEO Ivan Espinosa.
Final thoughts
While Nissan may sell its Yokohama, Japan headquarters, there’s a good chance it’ll lease back the space, similar to what McLaren did in 2021 to reduce debt. McLaren will continue using its Woking, England headquarters through at least 2041. The move might prove wise given that Nissan could make around $700 million and essentially stay put through signing a sale-and-leaseback deal, but we’ll have to see how their other plans pan out.
