Nissan reorganizes globally to reverse losses

Both companies, together with Mitsubishi Motors Corporation, announced the signing of a memorandum of understanding (MOU) to jointly discuss a framework for greater intelligence and electrification of cars, based on the agreement signed by Nissan and Sling last March 15.

The financial newspaper also reported that Nissan’s future has an expiration date. A “senior Nissan official” was quoted as saying: “We have 12 or 14 months to live”. This is going to be difficult. And finally, we need Japan and the United States to generate cash.”

In this context, the Japanese manufacturer of cars has appointed Jeremy Papinwho oversaw its operations in the United States, as operational director, in a major reorganization of the management leadership that is considered key to reversing the losses that the company has suffered.

Papin, chairman of Nissan’s Americas Management Committee, replaces Stephen Ma, who will oversee Nissan Motor Corp.’s operations in China.

Nissan’s promise earlier this year to reduce the cost of making electric cars by 30% reflects one of its biggest challenges: the growing popularity of ultra-cheap electric vehicles in China.

Nissan hopes to generate liquidity quickly in Japan and the United States, but its situation remains critical. The future of the company will depend on its next strategic decisions to get out of this precarious situation.

In China, the situation is not much better since the combined sales of Nissan brands in that country (Nissan, Venuncia and Infiniti) from January to August 2024 reached a total of 435,603 units. Approximately what the Chinese BYD sells in a single month.

Meanwhile, other companies are facing an unprecedented crisis in their automotive sector, especially in Europe and the United States. As the automotive industry struggles to adapt to the new sustainability policies imposed, 7 manufacturers find themselves caught in a dilemma that threatens their livelihood.

This problem is evident in the recent announcements by Ford and Volkswagen, which show the fragility of a sector increasingly affected by environmental regulation and economic instability.

In the European market, Nissan is mainly relying on sales of the Qashqai and the Juke, but could relaunch the small Micra with a 100% electric motor, based on the technology of the future electric Renault Twingo. Therefore, this new model could be postponed or even canceled in favor of a synergy with Honda.