While Nissan’s USD 313.8 million operating profit is still a 14percent decline from the year before, it flips an expected loss in the region of USD 376.6 million. It also narrowed its net loss forecast to USD 3.45 billion from an earlier outlook of USD 4.08 billion—an improvement versus last year’s USD 4.21 billion.

Nissan credited the improvement to ongoing cost reductions and favorable exchange rates as part of its Re:Nissan plan. The three-year recovery plan, designed to pull the carmaker out of crisis mode, meant deep cuts in costs, including the shuttering of 17 global factories and reducing capacity. In the long-term, Nissan is also looking to cut down its global line-up.

Meanwhile, Honda reported a USD 15.7 billion loss due to the restructuring of its EV business. Once committed to an all-electric future, slowing EV demand, particularly in the U.S. forced a re-think.

The size of Honda’s operating loss would be one of the largest among Japanese automakers in history.

Honda also says a weaker-than-expected demand is also to blame as it faces competition in markets such as China and Asia. 

The carmaker says that customers in the region are shifting from hardware features such as fuel efficiency and cabin space to software-based features that continuously advance in line with customer preferences. This has intensified competition due to the rapid emergence of newer EV manufacturers that leverage their shorter product development cycle and strengths in the area of software-defined vehicle (SDV) technologies, including advanced driver assistance systems (ADAS).

In order to preserve cash, Honda is extending the lifecycle of several high-volume models such as the Odyssey MPV, Accord mid-size sedan, and Honda HR-V. Next-generation models of these nameplates will not arrive until the end of the decade at the earliest.

The Odyssey, which has had two midcycle updates since its last redesign in 2017, will see its run extended at least three more years, with the next-generation hybrid model now targeted for March 2030. Honda had considered temporarily dropping the minivan but decided against it to keep customers from defecting to rivals.

The Accord could go hybrid-only after a redesign by early 2030. Production of the midsize sedan’s gasoline-only version is extended a year through March 2030, with no next generation planned.

The HR-V’s life cycle will stretch to a decade, with production being extended at least two years. A redesign of the subcompact crossover now is expected by early 2032.

While extending the life cycle is expected to deliver a near-term profit lift by making greater use of existing tooling and platforms, that benefit will be partially offset by heavier incentive and marketing spending to move older models.

Honda is redirecting development resources aggressively toward hybrids. The company plans to launch 13 models using its next-generation hybrid technology over several years starting in 2027 with the all-new, next-generation Civic and CR-V which will be equipped with its first electric all-wheel drive system.