'Nissan in Financial Crisis to Sell Japan Headquarters Building... Proceeds Likely to Fund Restructuring'

Restructuring and Factory Closures Announced Due to Poor Performance
Media Report "Sale of Yokohama Headquarters Also Under Consideration"
Headquarters Building Estimated to Be Worth About 960 Billion Won

Japanese automaker Nissan, which has announced large-scale restructuring and factory closures due to poor business performance, is considering selling its headquarters in Yokohama, Kanagawa Prefecture, according to reports by the Yomiuri Shimbun and the Nikkei on May 24.

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Nissan has included its Yokohama headquarters among the assets to be sold in the fiscal year 2025 (April 2025 to March 2026). The Nikkei estimates the value of the headquarters building at over 100 billion yen (approximately 960 billion won). Nissan is considering continuing to use the headquarters under a lease arrangement after the sale.

Nissan relocated its headquarters from Ginza, Tokyo, to central Yokohama in 2009. The funds obtained from the sale of the headquarters are expected to be used for Nissan's restructuring costs. The company announced the previous day that it expects restructuring costs for fiscal year 2025 to be about 60 billion yen (approximately 576 billion won) higher than previously projected.

By 2027, Nissan plans to reduce the number of its global automobile factories, excluding China, from 17 to 10 and cut its workforce by about 20,000 employees, which is approximately 15% of its total staff. In Japan, the Oppama plant in Yokosuka, Kanagawa Prefecture, and the Shonan plant of its subsidiary Nissan Shatai in Hiratsuka, Kanagawa Prefecture, are reportedly being considered for closure.

Separately from these plants, Nissan is also considering selling part of its Tochigi Prefecture plant site, according to the Yomiuri Shimbun.

Nissan recorded a deficit of 670.8 billion yen (approximately 6.4 trillion won) in fiscal year 2024. This was the third largest deficit in the company's history.