[volkman10]

Nissan could have only "12 or 14 months to ensure its survival"

Except for Chinese car manufacturers and the occasional brand such as Lamborghini, the truth is that most car firms have seen their revenues fall quite noticeably. Nissan is one of them.
The Japanese firm reduced its global sales during the third quarter by only 2.8%. However, the drop in operating profit has been 85%. This is because the brand has been forced to increase incentives for dealers to help them sell cars. A measure that has involved an outlay of more than 150 million euros at the current exchange rate.

While Renault reduces its stake in the Japanese company (it already owns less than 40%), two senior Nissan officials (unidentified) have confirmed that the brand is looking for a new main investor.

Will Honda be that lifeline? It is too early to tell, but Nissan is in "emergency mode" and that it will carry out some drastic measures.

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[Sensible_Speed]

Is it unchecked debt that's driving automakers into the ground? Forecasting seems to have gone for a toss with the competition from China ramping up. All the best of plans have been laid to waste in many parts of the world, owing to the unbeatable prices that Chinese manufacturers offer. Some economic nationalism may soon be necessary to save the traditional marques from extinction. But with the EU policy heading the way it is right now, they seem to think shutting down auto-makers is good riddance. The EU already outsources supply of their whole basket of essentials from outside, why not this too?

[GTO]

Step by step, Nissan has been destroyed by its leaders. The bulk of this destruction started with the thief Carlos Ghosn, who was as incompetent an Auto CEO as Sergio Marchionne (another zero). Ghosn cut costs brutally, stopped investing in future tech (EVs, competent petrol & diesel engines, dual-clutch ATs), slowed investments in SUVs & Crossovers (the hottest car segments since over a decade), brought an extremely dated & ageing product line, cut costs even on the cars where the interior part quality sucked & reliability suffered. Nissan's dealers are the unhappiest, whether in India or USA.

Then, after the legal battle with Carlos Ghosn, there was even more politics & upheaval inside Nissan boardrooms. They refused a merger that Renault was proposing and completely destroyed relations with its long-time partner.

Nissan is in need of a complete overhaul (CEO, management, products, culture, everything)...much like Mahindra & Tata Motors went through in India.

[diwakarmuthu]

Originally Posted by GTO

Nissan is in need of a complete overhaul (CEO, management, products, culture, everything)...much like Mahindra & Tata Motors went through in India.

True!, they need a hardcore product person at the helm. I see similar parallels where the US auto majors were in the 2006-08 timeframes before the financial crisis exploded. Some key action items for the new boss (If ever they decide to choose one)

1. Secure funding - This is the most difficult part. Either the Renault JV has to go through or the Japanese Govt. should step in with some emergency funding.
2. Laser focus on product - Bring back the true Nissan DNA through its products - Only 2 brands Nissan and Infiniti. If Mitsubishi adds value for the rugged 4x4 space, leverage it
3. Autonomous tech and EV architecture - Establish a JV with startups that can accelerate Nissan's vision

So you need someone who can get in and get work done. Hope the brand survies this difficult phase

[volkman10]

Nissan slashing US production by 17% as it fights for survival.

The brand recently announced that roughly 6% of its US workforce will accept early retirement offers by the end of the year.

Nissan recently revealed it is selling more than 149 million Mitsubishi shares.

decision to cut production through to the end of March comes after a decision was already made to slow production at the two sites through the end of December, reducing work from five days a week to four.

Nissan says it’s evaluating production forecasts to better meet market trends and demand for its models.

It was recently revealed Nissan is cutting 9,000 jobs globally and is reducing its total output by 20% due to slow sales and reduced profit forecasts.

In August, Honda, Mitsubishi, and Nissan announced they would work together to build electric vehicles and software. While this tie-up has been positioned as a partnership, former Nissan and Renault boss Carlos Ghosn has suggested it could be a disguised takeover of Mitsubishi and Nissan by Honda.

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[vamsi.vadrevu]

This news is really concerning to me especially. I own a Magnite CVT. I don't want to be left grappling for spare parts availability 5 years down the line for my car.

What Nissan (global) needs to do is build products for each market specifically. Every market is different and so the products have to suit that market.

Currently, Nissan seems to have decent sales in USA and Europe. But their power train technology needs upgrade. Their reputation is in tatters because of CVT fiasco and their variable compression turbo engines blowing up.

They didn't bring hybrid e-power to USA. They didn't bring it to India either. Many open opportunities to increase their revenue stream were left untapped. There's apparently a huge market in USA for simple compact cars with reliable transmissions (like the versa but without the CVT). Their obsession with CVT probably ruined their image forever. In the short term they can offer the US market manual transmissions alongside their CVT counterparts. And invest or purchase torque converter AISIN gearboxes for the rest of their line up. This would drastically improve their reliability scores and draw more people to buy Nissan.

I don't understand how the leadership misses these opportunities that everyone else sees. I guess running large conglomerates is that difficult.

Every manufacturer needs halo products. Nissan has GT-R and Patrol. Their VQ series engines are famed for extreme reliability. They need to use it in most of their lineup as much as possible. Even if it's expensive, that engine option will draw a lot of customers. And to counter the CAFE regulations they have to bring in epower powertrains.

They already have decent EV tech, they can buy battery tech from BYD like Mahindra did with their BE vehicles and continue developing their EV portfolio.

Only a multipronged approach can save Nissan.

What used to be an aspirational brand during the 2000s, is now in this situation. It is extremely sad.

I see so many US reviewers lambast Nissan for their over insistence on CVT. They should have read the signs. But when leadership is blind to feedback, there's nothing one can do.

[Rumblestrip]

Sad state of affairs for Nissan. They ought to blame themselves for this mess. They missed every possible opportunities to grow the brand. Constant change in leadership and their strategies led to their ultimate downfall.

Imagine having only one product in the third largest automobile market in the world for almost half a decade. Speaks volumes about their vision and commitment.

Not sure how much of a difference they can make partnering with Honda who is barely surviving in Indian and western markets. But it's too early to write them off. Hoping the partnership brings much required synergy

[svsantosh]

Nissan needs a DOGE movement within itself. Cull all loss making lines, factories, products, markets - reinvent itself from ground up and make a fresh start.

Thinking about it, there are so many Indian movies which portray such stories where the rich family goes bust and they move to a poor mans 1bhk society wala apartment, and 1 hero fights to bring the family back to glory! I bet all of us have seen 1 such movie till now.

Nissan needs that 1 hero to make a 'Let that Sink in' movement.

[akg7091]

I fear this is what Honda is looking at ten years down the line. As a current redigo and magnite owner, Nissan failing globally is a concern. India will be one of the first markets they exit if there's a cash crunch at the parent level

[anjan_c2007]

An US FM station that I listen in to daily, has pulled out the Nissan Pathfinder and Nissan Rogue advertisements that were aired since past many years, since last week. Pending dues could be a reason.

Datsun/Nissan were the first to set up an assembly line in the U.K. in 1970's, post the global oil crisis. And soon after capturing the market it set up a manufacturing plant named Nissan Motor Manufacturing, U.K., in 1984 in Sunderland. The production was inaugurated by Ms Margaret Thatcher, then PM. The British car industry that was blighted by strikes as well as reports of disappointing build quality and reliability of many of its cars, was on the brink. The company gained its foothold in Europe.

We also pay homage to the mechanical warriors Nissan Jonga Patrol MUVs and the Nissan 4W 73, 1 ton, light trucks that were one of the mainstay of our armed forces helping India win two wars.

The past shows a visionary leadership at the helm, which helped propel Nissan as the second-largest automobile company in Japan. The present scenario is a human creation by the inept and unfit leadership leading the glorious automaker to its doom times.

[ajmat]

Originally Posted by GTO

Ghosn cut costs brutally, stopped investing in future tech (EVs, competent petrol & diesel engines, dual-clutch ATs), slowed investments in SUVs & Crossovers (the hottest car segments since over a decade), brought an extremely dated & ageing product line, cut costs even on the cars where the interior part quality sucked & reliability suffered. Nissan's dealers are the unhappiest, whether in India or USA.

Then, after the legal battle with Carlos Ghosn, there was even more politics & upheaval inside Nissan boardrooms. They refused a merger that Renault was proposing and completely destroyed relations with its long-time partner.
.

On the other hand, Renault also "blessed" by Ghosn is going from strength to strength due to

1. Making really good cars which people want
2. Leveraged Dacia and created a totally new budget car segment
3. Stuck to the segments which make money and stopped making cars in the D segment and above.
4. Knew their brand will not cut it in the D segment and above
5. Never overinvested in China
6. Stuck to key markets - Europe, Turkey, Eastern Europe and Russia (no longer though)

Another millstone around Nissan's neck is Mitsubishi which Ghosn foisted on Nissan

[funnysaltbrick]

Nissan has an upward battle. The public perception of Nissans have been pretty bad, with extreme cost cutting and substandard touchpoints ruining their reputation. Add to that the Ghosn fiasco and you see how bad it's gotten.

I fully trust Nissan to get their numbers sorted. I don't believe that Honda is the answer as it's another Japanese brand who's weaning arround at best. If they want a future, they should work closer with Renault but Renault wants to get out of this deal so it's tough times. One can only see from the outside.

[volkman10]

Nissan CFO Stephen Ma to step down as crisis deepens – second top exec departure in 17 months.

it is unclear whether Ma would be demoted or leave the company altogether. The move comes 17 months after chief operating officer Ashwani Gupta also left his post, leaving CEO Makoto Uchida as the sole top-level C-suite executive remaining at a time Nissan has attracted the attention of Singapore-based activist investor Effissimo Capital Management.

Nissan now estimates an operating income of 150 billion yen (RM4.46 billion) for the fiscal year ending in March, down 70% from its previous forecast. Its market capitalisation has shrunk to around 1.5 trillion yen (RM44.6 billion) since its peak at almost six trillion yen (RM178 billion) in 2015 and means the company is now only the fifth-largest Japanese carmaker in terms of market value after Toyota, Honda (with which Nissan has signed a partnership that could be crucial to its survival), Suzuki and Subaru.

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[arjab]

Link:
https://www.reuters.com/business/aut...ob-2024-12-05/


Does not make for a pleasant read. Sad to see one of the most competent vehicle engineering firms slide down to this level. Nissan has some brilliant engineers and iconic products. Top management bickering and myopic strategies seems to have robbed Nissan of its competitiveness.
Rumour has it that Honda might buy the Nissan shares offloaded by Renault. Now that would put a whole new perspective to the Japanese automotive industry. Wonder what'll happen to Mitsubishi?

[volkman10]

Nissan's lack of hybrids is killing the company, Report Says

The company left hybrids behind to go all-in on EVs. The problem began then.

As the COVID pandemic eased up, Nissan CEO Makoto Uchida went full speed ahead on an all-electric future and stepped away from hybrids. That decision could end Uchida's tenure as the head of Nissan, as it's a major factor in the automaker's current financial woes.

Citing unnamed sources familiar with Nissan's plan, questions arose months ago from managers about the lack of hybrid models for the US market. The report alleges that Nissan leadership didn't think the rising demand for hybrids would last.

Nissan is struggling on a global scale. Last month, the Japanese company announced its operating profit was down an astonishing 90 percent through the first half of the fiscal year. Net income was down 94 percent. That prompted CEO Makoto Uchida to announce a bevy of reforms and cost-cutting measures. But cuts can only go so far.

Nissan is planning an electrified blitz with 16 new hybrid powertrains coming by 2027. Of course, that depends on the company surviving long enough to make that happen.


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