Nissan crisis worldwide: you have one year to reverse the situation

Nissan crisis worldwide: you have one year to reverse the situation

The changes that are taking place in the automotive industry worldwide are increasingly accelerated. New technologies, new consumer habits and the overwhelming advance of Chinese brands put the large and traditional brands in the sector in check. An example is that of nissan which is looking for a reference investor, since Renault, its partner for years, will sell its participation to Sling in the Japanese company, as reported by the Financial Times.

Everything indicates that the automaker seems willing to have Honda as a long-term shareholder with its eyes on electric and autonomous vehicles.

The Nissan situation

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 Honda on March 15.

In this context, 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.”

Cars 0Km Nissan Dealers 01.jpg

Ignacio Petunchi

Nissan’s promise earlier this year to reduce the cost of making electric cars by 30 percent 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, car manufacturers 7 They find themselves trapped 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.

Source: Ambito

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