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Yulon Nissan Motor Swaps Leadership as Tariff Pressures Drive Losses

The Taiwanese automaker's first-half deficit reached NT$320 million as trade tensions batter sales
Taiwan
y 2227.TW Mid and Small Cap 2000
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Yulon Nissan Motor Co. replaced its chief executive officer as the Taiwanese automaker grapples with mounting losses triggered by escalating US tariff disputes that have battered the domestic auto market.

The company, which trades under stock code 2227, reported a NT$320 million ($9.8 million) loss for the first six months of 2025, marking NT$1.07 per share in losses. The deficit extends beyond a rare first-quarter loss, continuing into the second quarter as tariff uncertainties weigh on consumer demand.

General Manager Zhong Wenchuan will transition to a special assistant role reporting to the chairman, while Yao Zhenxiang, currently vice chairman of parent company Yulon Motor, assumes the top operational position. The leadership reshuffle comes as the company seeks to navigate what it describes as unprecedented challenges facing Taiwan’s automotive sector.

The broader Yulon Group has been vocal about tariff-related pressures, with executives recently emphasizing the need for policy clarity as Taiwan weighs potential reductions to its 17.5% import duties on vehicles. Such cuts could further erode market share for domestic manufacturers already struggling against foreign competition.

Yulon Nissan Motor, which distributes Nissan and Infiniti brands in Taiwan through its partnership with the Japanese automaker, cited the need to strengthen operational capabilities and after-sales services. The company emphasized its commitment to leveraging Nissan’s technical collaboration while pursuing transformation strategies to address competitive pressures.

The automotive sector’s challenges reflect broader economic uncertainties, with Taiwan’s total vehicle sales expected to decline this year as buyers remain cautious about major purchases. The management change positions Yao, with his extensive experience in Taiwan’s automotive industry, to guide the company through what could be an extended period of market volatility.

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