The auto industry as a whole is facing a period of uncertainty with unprecedented disruptions and other factors forcing them to change their plans and alter the way they do business. While many of these companies have quickly adjusted to the new normal, Nissan has been adrift as it struggles to stay afloat due to rising costs and slumping sales.
Cuts persist as recovery plan rapidly crumbles
According to Japanese outlet NHK, Nissan is planning an additional 10,000 job cuts which is on top of the already existing 9,000 workers the company planned to get rid of prior to this new report. The report also comes one day shy of the company’s annual earnings call with Nissan more than likely using the call to reveal more bad news with the company already predicting bad results several weeks ago including a record $5 billion net loss for the fiscal year which ended in March.
Things reached a crescendo when former CEO and President Makato Uchida after merger talks with Honda stalled and outright collapsed due to the two firms not agreeing on who would have the most say in the newly combined entity with Uchida and board members allegedly being resistant to Honda’s demands during the failed merger talks. Ivan Espinosa stepped in to replace him and Espinosa has the hefty task of stabilizing the company with the exec signing off on an aggressive model launch strategy to reverse declining sales.
Carlos Ghosn weighs in
Along with its immediate troubles, the company has also had to deal with one lingering problem, Carlos Ghosn. The disgraced former executive and current Interpol fugitive fled Japan in 2019 after he was ousted from the company for alleged financial misdeeds. Ghosn has weighed in on Nissan’s issues in the past, and used the opportunity to weigh in on the company’s woes in a statement to French publication BFM Business where he said “I predicted Nissan’s decline and the alliance’s demise”. While the alliance is far from dead, conditions are ripe for a potential split between Nissan and Renault if things don’t improve.
Ghosn also pulled no punches when it came to placing blame with the disgraced exec putting the blame squarely on management in a separate statement saying Nissan was “forced to go and beg for help from one of its main competitors in Japan,” which is another swipe at the company starting talks with Honda.
Nissan at crossroads
With its attempt at recovery seemingly unraveling at the seams, Nissan is at a pivotal crossroads. The massive wave of new products that it intends to launch is a big gamble and while the revamped Murano and the Armada are the first steps of this plan that customers can experience, the company needs alot more than those two to stay afloat. The Nissan Rogue is due for a revamp and this model will be a key test for the company’s future since the Rogue is competing in a key slice of the SUV market.
It remains to be seen where Nissan will end up and whether it will still be a viable company moving forward, but as the company continues to face more challenges, the pressure will only grow, and the challenges to the company will only intensify.
Carl Malek has been an automotive journalist for over 10 years. First starting out as a freelance photographer before making the transition to writing during college, his work has appeared on numerous automotive forums as well as websites such as Autoshopper.com.
Carl is also a big fan of British vehicles with the bulk of his devotion going to the Morgan Motor Company as well as offerings from Lotus, MG, and Caterham. When he is not writing about automobiles, Carl enjoys spending time with his family and friends in the Metro Detroit area, as well as spending time with his adorable pets.