The UK subsidiary of Japanese automotive giant Nissan has reported a substantial pre-tax loss of £888 million for its latest financial year. This figure marks a steep increase from the £67 million loss recorded in the previous 12-month period.
Impairment Charge and Electrification Hurdles
According to accounts filed with Companies House, the significant loss includes a major impairment charge of £656 million against the value of the company's fixed assets. Nissan stated this assessment was driven by the latest forecasts, citing key challenges including the "full electrification of our current model portfolio, customer demand and increasing competition in the industry."
In a move to shore up its financial position, Nissan received a capital injection of £990 million from its immediate parent company on 20 November 2025. The manufacturer said this funding would strengthen its balance sheet and return it to a positive net assets position.
Production and Sales in Decline
The company's turnover also fell, dropping from £7.3 billion to £6.6 billion year-on-year. Total vehicle production at its Sunderland plant, the UK headquarters, declined from 325,000 to 276,000 units.
Several factors contributed to this drop:
- The end of production for the previous Nissan Leaf model in February 2024, though a new version began production last month.
- Output of its best-selling model, the Qashqai, fell to 170,000 units from 199,000.
- The company closed its Sunderland casting plant in September 2025, after production was extended due to additional orders.
Workforce Reductions and Global Context
Nissan's headcount in the UK reduced from 6,966 to 6,703, a move the company attributed mainly to direct production staff reductions resulting from lower volumes. This forms part of a wider global restructuring.
In May 2025, the carmaker confirmed plans to cut a further 11,000 jobs worldwide and shut seven factories, bringing the total number of jobs lost that year to approximately 20,000 globally.
The latest accounts highlight the intense pressures facing traditional car manufacturers as they navigate the costly transition to electric vehicles and respond to shifting market demands and fierce competition.
