Money-losing Nissan sells HQ building to boost cash reserves
What's the story
Japanese automaker Nissan has announced the sale of its Yokohama headquarters building for ¥97 billion ($630 million). The move is part of the company's broader revival efforts. The buyer is Tokyo-based real estate operator MJI Godo Kaisha, who will lease back the property to Nissan. The company plans to use the proceeds from this transaction to modernize its internal systems and accelerate AI-driven digital transformation across its operations.
Buyer profile
Buyer is a special purpose trust owned by Minth Group
MJI Godo is a special purpose trust owned by Minth Group, a major auto parts maker listed in Hong Kong. The financial details of the lease have not been disclosed yet. This strategic move comes as Nissan continues to grapple with profitability after reporting a massive ¥670.9 billion ($4.4 billion) loss for the fiscal year ending March 2025.
Leadership change
Nissan's turnaround strategy focuses on capital efficiency
Nissan's turnaround strategy is being led by its leadership team, focusing on a disciplined approach to capital efficiency and unlocking value from non-core assets to support transformation during challenging times. This move is part of Nissan's broader strategy to innovate, remain competitive, and aggressively pursue research for future growth.
Cost-cutting measures
Plans to cut 15% of global workforce
As part of its restructuring efforts, Nissan has also announced plans to cut 15% of its global workforce, which translates to around 20,000 jobs. These measures are all part of a broader strategy to return the company to profitability after a significant fiscal loss last year.