Has a major victory been achieved by new Chinese brands?
Speculation of Nissan’s The collapse has reached a frenzied state following the replacement of its CEO earlier this week.
Makoto Uchida, who was previously the CEO of Nissan but has since left the position, resigned following his tenure as leader of the major Japanese company. He was unable to ensure the brand’s continued success through a new alliance or collaboration.
・ Japan's response to Chinese giants stumbles as Nissan and Honda scrap their merger plans, leading Nissan to cut numerous jobs and shut down production facilities.
・ Could a major Japanese automaker be facing setbacks? Reports suggest that Nissan’s executives are hesitant about taking on a subsidiary role, as negotiations with Honda seem to have hit a roadblock according to recent discussions: sources indicate.
・ Has Nissan truly reached a point of no return? The local chief speaks candidly about "the big issue everyone's avoiding," offering straightforward truth and immediate steps.
Ivan Espinosa, Nissan’s Chief Planning Officer, takes over from him. This marks the automaker’s fourth leadership change in just six years, coming after the sudden removal of ex-CEO Carlos Ghosn.
The last straw for Uchida's term was the unsuccessful merger attempt. Honda.
It toppled because Nissan was not content with remaining a subordinate of its previous competitor. Nissan desired greater influence in the merger and opted for forming a joint holding company where Honda would select most of the board members along with the CEO, yet Nissan wished to maintain certain levels of autonomy.
Honda took on all the risks by rescuing the struggling Nissan and probably wasn't ready to submit to the less powerful ally.
Nissan has now unveiled a significant worldwide initiative aimed at reducing costs substantially. Additionally, they have reduced their projected profits for the third time within this fiscal year.
The automotive company from Japan plans to reduce vehicle manufacturing by 20 percent by the fiscal year 2026.
This would result in a decline of worldwide vehicle production from 5 million to 4 million cars.
Nissan intends to cut 2500 indirect global positions and eliminate 6500 manufacturing roles over the coming two years.
It is anticipated that three factories will be closed as part of these cost-saving measures. This information comes from a UK-based source. Autocar Even suggests that the recently improved Sunderland facility might still be at risk.
The issues confronting Nissan run deep and are impacting all automobile manufacturers worldwide.
Nissan has faced tough competition in China from rapidly growing automakers like BYD swallowing up market share from established brands in the globe's biggest automobile market.
The Japanese manufacturer hasn't been performing as well in the US market lately, where it used to be quite successful. This downturn is anticipated to worsen with the introduction of new tariffs on vehicles coming into the country from Mexico.
It has a less extensive selection. electric cars and hybrids as others.
The expansion of Chinese brands into various emerging markets and established ones like those in Australia and the UK will further challenge this particular brand’s position.
In 2024, Nissan experienced a resurgence in Australia, with their sales increasing by 15 percent; however, they faced some challenges at the beginning of the year.
Sales have dropped approximately 30 percent over the initial two months of this year. In comparison, the decline in the Australian new car market stands at just 5.4 percent for the same period, underscoring Nissan’s challenges.
Key models include the X-Trail mid-size SUV and Qashqai compact SUV hasn't met last year's standards, but a recent upgrade to the Qashqai might ease some of that pressure on the model.
In an ambitious step, Nissan Australia extended its warranty from a five-year/unlimited kilometre coverage to a comprehensive ten-year/300,000-kilometre condition-based warranty. warranty backdated to early 2021 to help bring in new buyers and retain existing customers.
Nissan has numerous offerings in development aimed at enhancing sales over the coming two years. The new model of the Patrol 4WD is scheduled to be released towards the end of 2026. Nissan Ariya and Leaf electric cars will be here shortly.
A new Navara ute It will also be discussed alongside updates for various other models.
