Nissan Might Sell Yokohama HQ To Survive - Report

Facing survival challenges and following its November announcement of closing seven factories and laying off 11,000 workers globally, Nissan is considering further cost-cutting measures, including the potential closure of its global headquarters.

Reports from Nikkei Asia indicate the Japanese automaker may sell its Yokohama headquarters building by the end of March 2026 to generate over 100 billion yen (RM3 billion) for its ongoing restructuring plan.


Nissan's current headquarters in Yokohama opened in 2009 after former CEO Carlos Ghosn relocated the headquarters from Tokyo. It remains uncertain whether Nissan will move from this existing location or adopt a sale-and-leaseback arrangement with a new owner, similar to McLaren's strategy at their Woking headquarters to reduce debt.

Proceeds from the sale of Nissan's building and property will cover restructuring expenses related to upcoming plant closures and worker reductions. This follows the automaker's announcement of a 670.9 billion yen (RM20 billion) loss for the fiscal year ending March 2025, with restructuring costs expected to reach 60 billion yen (RM1.8 billion) this fiscal year.



Selling its headquarters would be the latest in a long line of significant cost-cutting initiatives. Two weeks ago, Nissan's new President and CEO, Ivan Espinosa, unveiled a recovery plan aiming for 500 billion yen (RM15 billion) in savings this fiscal year relative to fiscal year 2024.


Looking ahead, the automaker targets turning a profit and generating free cash flow in its business by 2026. To get there, they're streamlining operations by cutting vehicle platforms from 13 down to 7 by 2035, which should slash parts complexity by 70%. They're also speeding things up, aiming to cut vehicle development time from 37 to 30 months.