Nissan’s financial performance for the April to December period has significantly declined, with profits plummeting to just 5.1 billion yen (approximately $33 million). This stark contrast reflects a dramatic drop from the 325 billion yen the company reported in the same timeframe the previous year.

In terms of sales, the company witnessed a slight decrease of less than 1%, bringing their total revenue to 9.14 trillion yen ($59 billion). Looking ahead, Nissan has forecasted an operating loss of around 80 billion yen (about $519 million) for the fiscal year ending in March.

Alongside these disappointing financial results, Nissan Motor Corp. has also decided to halt discussions with its domestic competitor, Honda Motor Co., regarding a potential business integration. This decision was announced on Thursday, signaling a shift in strategy for the automaker.

Nissan’s Chief Executive, Makoto Uchida, addressed the media, explaining that the focus had shifted from establishing a joint holding company to the idea of Nissan becoming a subsidiary of Honda. He deemed this change unacceptable and emphasized that, despite the termination of the talks, both companies would still seek to develop synergies, particularly in the fields of electric vehicles and research collaborations.

Uchida also mentioned that Nissan is determined to pursue a recovery independently from Honda, while maintaining openness to various strategies. A comprehensive plan detailing Nissan’s future direction is expected to be released within the next month. Additionally, the company has announced its intention to streamline operations, which includes the potential closure of certain production lines and possibly entire facilities, alongside cutting 9,000 jobs.