YOKOHAMA, JAPAN, 25th May 2025: After declaring a $4.5 billion net loss for FY 25 and reducing spending by $3.34 billion by closing seven plants and laying off 20,000 workers, Nissan Motor Company is considering selling its global headquarters in Yokohama to solve its crisis.
The Reuters newswire and other Japanese media outlets claim that Nissan is selling its $700 million headquarters in order to raise money for its continuing business. This move is reportedly a last-ditch effort by Nissan’s non-Japanese CEO, Ivan Espinosa, to intensify the automaker’s revival plan, which also includes additional factory closures and job cuts following the company’s significant net loss.
Reports state that Nissan is considering a lease-back arrangement for the headquarters building, which would allow it to stay open after the sale. This complex became the automaker’s global headquarters in 2009 after it relocated from Tokyo’s Ginza neighbourhood to Yokohama’s Minato Mirai district. With an estimated value of ¥100 billion, a sale of the property could swiftly generate the required funds.
The reason for Nissan’s $4.5 billion fiscal year 2025 loss is that many of its models are out of date due to lack of updates. Once a leader in electric vehicles, the Nissan Leaf has fallen behind its competitors in terms of technology and range.
Nissan is contemplating the sale of its office to generate funds for the company, with the intention of leasing the space back to cover plant closure costs and use the proceeds to fund future expansion.
Nissan has had a lot of management instability since Carlos Ghosn was fired in 2018. Espinosa, the company’s new CEO, has taken drastic measures to overcome the challenges posed by geopolitical unrest, such as a decline in passenger car sales in China and U.S. tariffs that have raised the cost of Japanese cars in the American market.
