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Nissan Posts $4.5 Billion Annual Net Loss, To Cut 20,000 Jobs
Industry Week
Nissan Posts $4.5 Billion Annual Net Loss, To Cut 20,000 JobsJapan's Nissan posted an annual net loss of $4.5 billion on Tuesday while saying it plans to cut 15% of its global workforce and warning about the possible impact of U.S. tariffs. The heavily indebted carmaker, whose mooted merger with Honda collapsed this year, is slashing production as part of its expensive business turnaround plan. "Nissan must prioritize self-improvement with greater urgency and speed," CEO Ivan Espinosa told reporters. "The reality is clear. We have a very high cost structure. To complicate matters further, the global market environment is volatile and unpredictable, making planning and investment increasingly challenging." Nissan reported a net loss of 671 billion yen ($4.5 billion) for the financial year to March 2025. Its worst ever full-year net loss was 684 billion yen in 1999-2000, during a crisis that birthed its rocky partnership with French automaker Renault. Renault, which has nearly a 36% stake in Nissan, said Tuesday it expects to take a 2.2-billion-euro ($2.4-billion) hit in the first quarter due to Nissan's turnaround plan. Nissan did not issue a net profit forecast for 2025-2026, only saying that it expects to see sales of 12.5 trillion yen. "The uncertain nature of U.S. tariff measures makes it difficult for us to rationally estimate our full-year forecast for operating profit and net profit, and therefore we have left those figures unspecified," Espinosa said. Nissan's shares closed 3% higher Tuesday after reports, later confirmed by the company, that it planned to slash a total of 20,000 jobs worldwide. "We wouldn't be doing this if it was not necessary to survive," Espinosa said of the cuts. Nissan, as part of recovery efforts, also said it would "consolidate its vehicle production plants from 17 to 10 by fiscal year 2027." "In China, we will strengthen our market performance by unleashing multiple new-energy vehicles," it added. Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands. A merger with Japanese rival Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary. Espinosa said Tuesday that Nissan remained "open to collaborating with multiple partners," including Honda. Nissan has faced numerous speed bumps in recent years -- including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box. The automaker, whose shares have tanked nearly 40% over the past year, appointed Espinosa CEO in March. Ratings agencies have downgraded the firm to junk, with Moody's citing its "weak profitability" and "ageing model portfolio". And this month Nissan shelved plans, only recently agreed, to build a $1 billion battery plant in southern Japan owing to the tough "business environment." Of Japan's major automakers, Nissan is likely to be the most severely impacted by U.S. President Donald Trump's 25% tariff on imported vehicles, Bloomberg Intelligence analyst Tatsuo Yoshida told AFP ahead of Tuesday's earnings report. Its clientele has historically been more price-sensitive than that of its rivals, he said. So the company "can't pass the costs on to consumers to the same extent as Toyota or Honda without suffering a significant loss in sales units," he added. All rights reserved ©2025 Agence France-Presse
factory
May 13, 2025
Ppg Announces New $380 Million North Carolina Factory
Industry Week
Ppg Announces New $380 Million North Carolina FactoryPPG Industries, Inc. announced today it would spend $380 million to build a new factory in Shelby, North Carolina, to produce aerospace coatings and sealants. The Pittsburgh, Pennsylvania-based paint and chemicals company said the 198,000-square-foot-factory will eventually employ 110 people. In a May 8 statement, PPG chairman and CEO Tim Knavish said the 198,000-square-foot-factory would help meet growing demand for aerospace products. “By modernizing and digitizing our facilities, PPG will continue to embody our purpose — to protect and beautify the world — while contributing to the growth and innovation of the aerospace sector,” said Knavish. Sam Millikin, PPG’s VP for the global aerospace sector, said the new facility’s location will improve “operational facility in supporting our customers” and thanked North Carolina Josh Stein for his “continued partnership” with PPG. In his own statement, Governor Stein said he would continue to call for training and education programs to supply well-trained employees for area businesses. PPG’s aerospace division makes specialty chemicals used in aircraft manufacturing and maintenance, including adhesives, paint for airplane livery, and sealants for windows and fuel tanks.
factory
May 08, 2025
Ford Sees $1.5 Billion Tariff Hit This Year, Suspends 2025 Forecast
Industry Week
Ford Sees $1.5 Billion Tariff Hit This Year, Suspends 2025 ForecastFord reported a 65% drop in first-quarter profits Monday, citing a near-term drag on auto sales from new vehicle launches, as it withdrew its forecast amid tariff uncertainty. The carmaker estimated a full-year net hit of about $1.5 billion in adjusted operating earnings following President Donald Trump's myriad tariff actions since returning to the White House in January. The company has implemented some supply chain changes to mitigate any blowback from Trump's tariffs, shaving $1 billion from the overall tariff drag, which Ford estimated at $2.5 billion after levies on imported finished vehicles, steel and aluminum and imported parts. "Our teams have done a lot to minimize the impact of tariffs on our business," Chief Financial Officer Sherry House said on a conference call with reporters. Profits came in at $471 million, beating analyst expectations but just over a third of the level in the 2024 period, with revenues falling 5% to $40.7 billion. In the first quarter, Ford wholesale units fell 7% from the year-ago level, a drop the automaker had previously telegraphed due to slowed output at plants in Kentucky and Michigan where new vehicles are being launched. In March, Ford began shipping the new Ford Expedition and Lincoln Navigator to customers. Profits fell in Ford's "Pro" division, which is geared toward fleet and sales to businesses, and in its "Blue" division, which consists of conventional internal combustion engine cars. But losses declined in Ford's electric vehicle division. Ford described its underlying business as "strong," saying it had been on track with the prior projection of between $7 and $8.5 billion in adjusted operating earnings, excluding tariff-related impacts. Ford's measures to limit tariffs thus far include adjusting vehicle shipments from Mexico to Canada to avoid triggering U.S. tariffs, said House. The company was also avoiding levies on parts that "merely pass through the U.S." Last week, Trump announced steps to mitigate tariffs on auto parts, permitting companies to offset a fraction of imported part costs for two years to allow automakers time to relocate supply chains. While the White House has not done anything to lessen the drag of 25% tariffs on finished autos, House said Ford expects an offset from U.S.-made parts assembled in foreign plants. Chief Executive Officer Jim Farley said Ford intended to stay "very aggressive" in chasing customers. The company last week announced it was extending a promotion that offers employee pricing on many retail models, lifting car sales significantly in April. But Ford executives expect pricing to rise later in 2025 as the tariffs reverberate through, likely denting sales in the second half of the year. House expects "some potential compression" in sales in the second half of 2025 when prices could tick higher amid tariffs, resulting in a net for all of 2025 of flat or up about 1%. Ford is "suspending" its guidance due to myriad uncertainties. Besides tariffs and potential retaliatory tariffs, Ford cited other "material near-term" risks as including potential supply chain disruption and uncertainty over emissions policy changes in Washington. The company is monitoring the impact of China's restrictions on rare earth elements, which play an important part in manufacturing and could potentially cause disruptions in auto supply chain, said Ford Chief Operating Officer Kumar Galhotra. That could result in lower production of vehicles at Ford or at a competitor, further altering the competitive pricing dynamics, Galhotra said. Ford fell 2.3% in after-hours trading. All rights reserved ©2025 Agence France-Presse
factory
May 06, 2025
Gm Cuts 2025 Outlook, Projects Up To $5 Billion Hit From Tariffs
Industry Week
Gm Cuts 2025 Outlook, Projects Up To $5 Billion Hit From TariffsGeneral Motors pledged Thursday to take additional steps to boost its U.S. supply chain after projecting a $4-5 billion hit to the U.S. auto giant's 2025 earnings from President Donald Trump's tariffs. GM expects to offset "at least" 30% of that tariff hit from "self help" measures that include relatively quick changes to its production and supply chain footprint, executives said. Chief Executive Mary Barra described her talks with Trump and his administration as "very productive," praising a White House move on Tuesday to temper tariffs on auto parts as advancing "our shared goals of growing the U.S. auto industry, which will be good for America in the long term." On Thursday, GM updated its adjusted earnings range to $10 billion to $12.5 billion from the earlier $13.7 billion to $15.7 billion. The impact includes $2 billion in estimated tariffs on finished vehicles from South Korea, where GM manufactures a number of value-priced autos, including the Chevrolet Trax, a small sport utility vehicle. GM postponed its earnings conference call until Thursday after Trump's tariffs move. The U.S. president also released a proclamation that gives the industry a two-year grace period to reduce "American reliance on imports of foreign automobiles and their parts" -- designed to encourage firms to move supply chains stateside. Under that policy, companies that import parts for vehicles assembled in the United States would be able to offset 3.75% of a vehicle's list price in the first year and 2.5% in the second year. But Trump has not taken steps to mitigate a 25% tariff on auto imports, which also affects GM vehicles made in Canada and Mexico. In media interviews Thursday, Barra said the company is considering its global operations in light of Trump's tariff policy, while monitoring trade talks between the United States and South Korea. "Our entire footprint is under review," Barra said on Fox Business. GM said earlier this month that it plans to boost truck production at its plant in Fort Wayne, Indiana. Barra signaled similar steps at other plants were likely, noting the company has "excess capacity" at manufacturing facilities in the United States and adjustments would be faster to make at existing factories. Other quick "self help" measures include shifting more electric battery module production to the United States and working with auto suppliers to boost their U.S.-supplied content for GM vehicles, said Barra, who noted that the company is also working to avoid unnecessary discretionary spending. "There's a lot of levers that we can pull," Barra said. "We'll be announcing more as we go forward." GM's American rival Ford reported a 16.2% surge in U.S. auto sales for April after the company extended employee pricing to retail customers. Chief Executive Jim Farley told Fox Business on Wednesday that Ford will extend that promotion through the July 4 Independence Day holiday. Ford will have additional comment on tariffs when it reports earnings next week, but Farley told Fox Business that a push to have U.S.-assembled vehicles made entirely of U.S.-made parts would mean higher prices for customers. Even with Trump's modifications, automakers face a 25% tariff on imported parts after the two-year grace period. Ford currently imports 15% of its parts. "What is the right balance between affordability and making 100% of the parts here?" Farley asked. "The issue is that it would increase the price a couple of thousand dollars, so that's the debate right there." Shares of GM rose 1.7% in morning trading, while Ford jumped 3.0%. All rights reserved ©2025 Agence France-Presse
factory
May 01, 2025
Manufacturing Business News: Emotionally Expressive Robots, A Pharmaceutical Importation Investigation And Other Headlines
Industry Week
Manufacturing Business News: Emotionally Expressive Robots, A Pharmaceutical Importation Investigation And Other HeadlinesWhile we have a great staff of dedicated editors here at IndustryWeek, we can’t write about everything. So, here’s a roundup of news from our parent company Endeavor Business Media’s many news brands.
factory
Apr 16, 2025
A Cotton Farm, A Made-In-The Usa Dream And A Manufacturing Dilemma
Industry Week
A Cotton Farm, A Made-In-The Usa Dream And A Manufacturing DilemmaAs a leader in manufacturing, I’ve always believed in the value of learning from other industries. Linens manufacturer Red Land Cotton, in particular, has reminded me of the immense power of innovation, resilience, and strong leadership. What began as a financial goal for Mark Yeager evolved into a business that exceeded the family’s wildest dreams. Cotton farming, like many agricultural endeavors, has become increasingly expensive. While the cost of farming cotton continues to rise, the price of the cotton itself has not increased enough to keep up with these escalating costs. In response, the Yeager family decided to transform their Alabama-grown cotton into finished products, leading to the creation of Red Land Cotton. Bringing a Made-in-USA Idea to Life Anna Yeager Brakefield, Mark's daughter, (pictured in main photo) graduated from Auburn University with a degree in graphic design. While she never envisioned returning to the family farm, life had other plans. After college, Anna moved to New York City, where she worked for an advertising agency. But after marrying her college sweetheart, Nick, and starting a family, Anna eventually found herself drawn back to the South, closer to the family farm where it all began. One Thanksgiving, Mark proposed an idea that would change the course of their family’s business. He suggested they create a line of cotton sheets made entirely in America. Within just one year, Anna and Mark had developed a product line, with sheets ready to ship for the holiday season. What started as a small project to make use of their own cotton quickly grew into something much larger. Today, Red Land Cotton operates under the mission to "keep the American dream alive." Over the past nine years, the company has expanded significantly, growing from a small operation in Mark’s office to a full-fledged business with a retail store, a distribution facility, and two cut-and-sew factories. What was once a modest idea to turn cotton into products has now become a symbol of American craftsmanship and entrepreneurship. Setting up Manufacturing However, as the business expanded, the cutting and sewing process became a bottleneck. A supplier in Georgia was experiencing quality control issues, and they and a supplier in Alabama were slowing down their ability to meet demand. In response, the Yeager family rented an abandoned plant in Mississippi from the local government and purchased all the machines and furniture that the previous manufacturers had left. With a substantial investment of both time and capital, they were able to bring the plant back to life. Some of the biggest challenges they faced were finding a qualified manager for the plant and dealing with a lot of quality control issues in the beginning. Managing the flow of fabric into the cut and sew so that it was consistent and steady was also a hurdle in the first three years of the plant’s initial startup. But the hard work paid off, and the production process is streamlined. Later, the family who had been running the cut-and-sew facility in Alabama decided to sell their business to Red Land Cotton. The family was ready to retire but lacked a succession plan, making the sale a natural next step. As a result, Red Land Cotton grew even further, employing 50 people and continuing to expand its footprint in the industry. Tariffs Should Help Their Business Manufacturing takes place exclusively in the U.S., so Anna believes that Red Land Cotton stands to benefit from the tariffs being placed on quality linens imported from countries like Turkey, Pakistan, and India. These tariffs will make it more difficult for foreign manufacturers to compete on price, giving American-made products an edge. As production increases, Red Land Cotton’s supply chain has become more resilient, allowing them to hire additional staff and make further investments in equipment and automation to boost efficiency. Anna is the first to admit that managing both internal personnel and vendors has been one of the most challenging aspects of her role. She believes that building a strong team around her is essential to growing the business beyond what she can accomplish on her own. Through her experiences working with both excellent and difficult leaders, Anna has developed her own leadership style. She emphasizes the importance of clear communication, taking responsibility when things don’t go as planned, and learning from mistakes to drive continuous improvement. Expanding the Business Looking ahead, Anna shares that the family’s goal is to use all the cotton they produce in American-made bedding products, further supporting the U.S. textile industry. She envisions Red Land Cotton becoming a leading brand that is synonymous with the creation of American manufacturing jobs. By revitalizing American textile manufacturing, Red Land Cotton is not just building a business—it is helping to make the American dream a reality for future generations. Through their commitment to quality, local manufacturing, and job creation, the Yeager family has proven that with hard work, dedication, and a willingness to innovate, it’s possible to turn a financial challenge into a thriving, purpose-driven business. As Red Land Cotton continues to grow, it remains a shining example of what’s possible when a family comes together with a shared vision to make a lasting impact on the American economy.
factory
Apr 09, 2025
Manufacturing Extension Partnerships Face Uncertain Future As Trump Pulls Funding
Industry Week
Manufacturing Extension Partnerships Face Uncertain Future As Trump Pulls FundingPresident Donald Trump’s administration will not renew contracts offering federal support for 10 Manufacturing Extension Partnership (MEP) programs, pulling millions of dollars in funding that small- and mid-sized manufacturers had used to support their operations. And, the April 1 decision is likely the first step in cutting funding to the entire national MEP network as the 10 states cut had contracts that expired at the end of March. MEP contracts in the remaining states expire in July 2025, October 2025, January 2026 and March 2026. So, within a year, the entire network could be defunded. Though operated by state agencies (often universities), the National Institute for Standards and Technology (NIST) manages the nationwide program. The first state MEPs hit were in:
factory
Apr 07, 2025
Opportunities And Challenges From Tariffs: Production Pulse
Industry Week
Opportunities And Challenges From Tariffs: Production PulsePresident Donald Trump's 10% tariffs on all imports to the United States, rising to as high as 49% for some countries, promise to upend the manufacturing landscape, forcing many producers to look for new suppliers and creating dramatic opportunities for companies that already have their production here.  It's too soon the know all of the impacts, but a few things are clear: Discussing these topics are InudstryWeek's editors. Below are some written thoughts that each of them had on the topic.
factory
Apr 03, 2025
Siemens Completes $10 Billion Purchase Of Altair
Industry Week
Siemens Completes $10 Billion Purchase Of AltairSpending $10 billion to do some things that you’re already doing? Siemens on Thursday announced it has completed its purchase of simulation software specialists Altair Engineering for that eye-popping sum. The German manufacturing technology behemoth already provides simulation via Simcenter and other products, but buying Michigan-based Altair will provide some immediate benefits. Randal Kenworthy, Consumer & Industrial Products global practice leader at business and technology consulting company West Monroe, says taking over Altair fills in critical gaps in Siemens’ portfolio, enhances its credibility in certain areas, turbocharges its AI systems and makes it a better end-to-end provider of every software product a manufacturer could need. “They've become the de facto market leader for Industry 4.0 platforms,” Kenworthy says. “I think this is the differentiating them by having a much deeper AI capability than Rockwell [Automation].” He adds that the Altair deal puts Siemens and Schneider Electric in market-topping positions.  Siemens officials echoed that sentiment in their official announcement with President and CEO Roland Busch saying the deal “will create the world's most complete AI-powered design, engineering and simulation portfolio…. We will extend our leadership in industrial software. This enables all industries to benefit from the revolution driven by data and AI.” Siemens has long billed itself as the only, or at least the primary, tech partner that most manufacturers need via its suite of design, control and monitoring software systems. Kenworthy says adding Altair gives it more credibility with simulation as some users prefer specialist providers instead of generalists. But, he adds, the issue is less about what Siemens needed in simulation tools and more about ease of use and showcasing forward-looking technology. Siemens’ software has traditionally been designed by engineers for engineers, while “Altair has more of a user-friendly kind of approach. If [Siemens] leverages any of the Altair user design and software design methodology, I think that would support the user interface and user friendliness of the platform.” More importantly, AI remains the biggest buzzword of the day, and Altair had invested heavily in a wide range of sophisticated AI tools for its simulation products. Siemens also has AI, but Kenworthy says Altair has bragging rights and a great reputation for the quality and usability of its AI tools. Siemens officials say they’ll be integrating Altair’s technology into its systems for quite some time and will share information in the near future on upcoming changes. They did not offer guidance on the future of Altair’s annual Enlighten Awards, an event that celebrated removing weight from products, primarily in the auto industry. The 2025 award is still seeking applicants. In 2024, BMW and General Motors won Enlighten awards, as did several automotive and materials companies. DuPont took home the Sustainable Product award for a series of adhesives for electric vehicles that cure at lower temperatures, reducing energy consumed during manufacturing while speeding production lines.
factory
Mar 27, 2025
25% Tariffs Coming For All Imported Cars In April: Dc Watch
Industry Week
25% Tariffs Coming For All Imported Cars In April: Dc WatchPresident Donald J. Trump says a lot of things every day that could affect manufacturers’ strategies. His social media posts, executive orders and comments to the news media, in addition to responses to those developments, can generate a lot of noise and confusion. So, welcome to DC Watch. In this space, we’ll collect the latest comments from politicians that could impact manufacturing and offer a little bit of context. We will continue to write in-depth material about big political issues impacting the manufacturing world – from tax and trade changes to regulatory overhauls. Many of those articles will start out here as Washington publicly debates the merits of various proposals.
factory
Mar 27, 2025