*

Nissan ( NSANF ) to close 7 plants, reducing production sites to 10

*

Espinosa highlights rising variable and fixed costs as

major

challenges

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Nissan ( NSANF ) anticipates 200 billion yen operating loss in first

quarter, CFO says

(Adds quote from Espinosa in paragraph 6)

By Daniel Leussink

YOKOHAMA, Japan, May 13 (Reuters) - Nissan Motor ( NSANF )

unveiled sweeping new cost cuts on Tuesday, saying it

would eliminate 11,000 more jobs and close 7 plants, capping a

tumultuous year that has left the Japanese automaker fighting to

turn itself around.

Nissan ( NSANF ), which held off on releasing estimates for the financial

year just starting, saw its profit almost wiped out in the one

just ended. Operating profit totalled 69.8 billion yen ($472

million) in the 12 months to March, a decline of 88% from the

previous year.

The automaker has been badly damaged by weakening sales in

the U.S. and China, and then saw merger talks with Honda ( HMC )

collapse and was recently forced to replace its chief

executive. Like rivals, it is also being squeezed by U.S.

tariffs and threatened by fast-rising Chinese EV makers in

markets in Southeast Asia and elsewhere.

New CEO Ivan Espinosa is aiming for total cost savings of some

500 billion yen. But he faces the difficult job of turning

around an automaker that has seen its once-mighty brand value

eroded.

"Our full-year financial results are a wake-up call. The

reality is very clear. Our variable costs are rising. Our fixed

costs are higher than our current revenue can support," Espinosa

told a press conference.

The new job cuts will bring Nissan's ( NSANF ) total workforce

reduction to around 20,000 jobs, after it previously announced

plans to cut 9,000 positions. It will cut the number of its

production plants to 10 from 17 and reduce the complexity of

parts by 70%. It did not give specifics on which plants it

expects to close.

Analysts have said Nissan ( NSANF ), among its many missteps, is also

paying the price for years under former Chairman Carlos Ghosn

where it focused too heavily on sales volume, and used heavy

discounts to keep cars moving off lots. That has left it with an

ageing line-up that it is now scrambling to update.

Still, it seems unlikely to expect a sudden turnaround - the

automaker sees a 200 billion yen operating loss in the first

quarter, CFO Jeremie Papin said.

($1 = 147.8400 yen)