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Chief Executive Reveals Why Nissan Collapse May Be Imminent as 7,000 UK Jobs Hang in the Balance
International Business Times ^ | 12/04/2024 | Vinay Patel

Posted on 12/04/2024 9:50:38 AM PST by SeekAndFind

Nissan, once a titan of the automotive world, is now teetering on the brink of collapse, jeopardising the livelihoods of 7,000 UK workers. Amid the crisis, financial mismanagement, fierce competition, and an inability to adapt to market changes have left the Japanese automaker grappling with an uncertain future.

Leadership Shake-Up Amid Financial Turmoil

The situation worsened when Stephen Ma, Nissan's Chief Financial Officer, resigned during the company's battle against looming bankruptcy. The Financial Times reports that Nissan is at risk of amassing a record debt of £4.4 billion ($5.6 billion) by 2026, with global sales plummeting 3.8% to 1.59 million vehicles in the first half of this fiscal year. This downturn, largely driven by a 14.3% decline in the Chinese market, highlights the company's struggle to remain competitive.

Makoto Uchida, Nissan's CEO, has implemented drastic cost-cutting measures, including reducing global production capacity by 20% and slashing £2 billion ($2.6 billion) in costs. Yet, insiders fear these efforts may be too little, too late to stave off collapse.

Competition from China: A Game-Changer

The rise of affordable Chinese electric vehicles (EVs) has been a pivotal factor in Nissan's decline. According to Bloomberg, Chinese automaker BYD has outpaced global giants, reporting £22 billion ($28.2 billion) in quarterly revenue compared to Tesla's £19.7 billion ($25.2 billion). Brands like BYD, Geely, and Chery are capturing significant market share with low-cost, innovative EVs, leaving traditional automakers like Nissan struggling to keep up.

Makoto Uchida admitted that Nissan underestimated the popularity of hybrid and plug-in hybrid vehicles. He stated, "This has been a lesson learned. We weren't able to foresee that hybrid electric vehicles would become so popular." This failure, coupled with the influx of cheaper EVs from China, has eroded Nissan's market share significantly.

Sunderland Plant: Uncertain Future

The crisis has cast a shadow over Nissan's Sunderland plant, the UK's largest car manufacturing site, which employs approximately 6,000 workers. Local leaders fear that factory closures could devastate the regional economy. According to The Financial Times, a senior Nissan official ominously warned, "We have 12 or 14 months to survive."

In a November press briefing, Hideyuki Sakamoto, Nissan's head of manufacturing, confirmed plans to cut production capacity further by adjusting line speeds and shift patterns to maximise efficiency. However, these measures may not be enough to secure the plant's future.

Strategic Alliances on the Verge of Collapse

Adding to Nissan's woes is the likely dissolution of its 1999 alliance with Renault and Mitsubishi. Renault may reduce its financial stake in Nissan, further destabilising the company. This strategic disintegration could leave Nissan scrambling for government assistance or new partnerships to survive.

A glimmer of hope lies in a potential alliance with Honda, Japan's second-largest automaker. Analysts speculate that Honda could acquire a stake in Nissan as a last-ditch effort to stabilise the company. However, this move remains uncertain, with experts suggesting it would be a high-risk strategy for both automakers.

As Chinese EV makers dominate the global stage, Nissan's failure to innovate and adapt has left it vulnerable. For the 7,000 UK workers whose livelihoods are at stake, the coming months will determine whether Nissan can overcome its existential crisis or become another casualty of the evolving automotive landscape.


TOPICS: Business/Economy; China; Japan; News/Current Events
KEYWORDS: automaker; automotive; carlosghosn; china; jobs; kicks; leaf; nissan; uk
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1 posted on 12/04/2024 9:50:38 AM PST by SeekAndFind
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To: SeekAndFind

Nissan’s mistake was partnering with the French Renault.


2 posted on 12/04/2024 9:53:45 AM PST by wildcard_redneck
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To: SeekAndFind

Nissan going bust isn’t good news at all for the world economy.

It’s one thing when a mainly regional manufacturer goes under (like AMC). But this is one of the largest in its sector.


3 posted on 12/04/2024 9:55:28 AM PST by packagingguy
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To: SeekAndFind

I’m hearing Nissan and Honda may merge just to save the Nissan brand.

The video I watched that on suggests a major bust for the entire automotive industry in 2025.

He was showing domestic trucks that the dealership was asking STUPID money for.......$107k for a dually??? That’s obscene.


4 posted on 12/04/2024 9:56:43 AM PST by V_TWIN (America...so great even the people that hate it refuse to leave!)
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To: SeekAndFind

Nissan embraced a transmission technology known as CVT in the early 2000’s that is awful.

Here is an article: https://carfromjapan.com/article/car-maintenance/nissan-cvt-transmission-problems/

Stay away from used cars with these transmissions.


5 posted on 12/04/2024 9:58:47 AM PST by LeonardFMason
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To: SeekAndFind

There are rumors that Honda is interested in buying Nissan.


6 posted on 12/04/2024 9:59:53 AM PST by RayChuang88 (.FairTax: America's Economic Cure)
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To: V_TWIN

At one point the Nissan V6 engine was one of the best engines ever made.
They put those in Maximas, Pathfinders and pickups. Easily put 250K miles on it.


7 posted on 12/04/2024 10:01:18 AM PST by woodbutcher1963
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To: SeekAndFind

The employees of such companies have to accept the fate delivered by poor executive decisions.

It really is too bad. Datsun/Nissan made some good decisions in its day, like the 280Z; still considered a collectors car.


8 posted on 12/04/2024 10:05:11 AM PST by Wuli
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To: woodbutcher1963

And in the meantime Toyota has decided to put 4 bangers in the Tundras and Tacomas.

I hear Toyota has a 100,000 vehicle recall for engines seizing up....
Looks like that high level Japanese quality philosophy didn’t make it to Mexico.


9 posted on 12/04/2024 10:07:03 AM PST by V_TWIN (America...so great even the people that hate it refuse to leave!)
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To: SeekAndFind

“adapt to market changes”

EVs and stupid government mandates will kill off al but the Chinese automotive market.


10 posted on 12/04/2024 10:07:37 AM PST by Organic Panic (Democrats. Memories as short as Joe Biden's eyes)
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To: LeonardFMason

I’ve got a ‘06 Murano that my son is driving while at school, she’s got close to 300k on her by now and is still running strong, never had an issue with the CVT once.

If perfected it really is a good method of getting power to the wheels on smaller cars, Nissan just didn’t prove it out well enough before switching to it.


11 posted on 12/04/2024 10:07:37 AM PST by Abathar (Proudly posting without reading the article carefully since 2004)
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To: LeonardFMason
Stay away from used cars with these transmissions.

Nissan, Honda, and Toyota Continuously Variable Transmissions (CVT) are very different from each other. Honda and Toyota CVTs seem to be quite solid. I have personally put hundreds of thousands of miles on Toyota CVTs with no issues.

Nissan perhaps not so much.

To dismiss the technology (rather than a particular implementation of it) as "awful" is not accurate.

12 posted on 12/04/2024 10:09:23 AM PST by NorthMountain (... the right of the people to keep and bear arms shall not be infringed)
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To: RayChuang88

Makes sense. Honda needs to bulk up to compete with the likes of Toyota. The more units costs are spread over, the better.


13 posted on 12/04/2024 10:09:41 AM PST by maro (MAGA!)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...

14 posted on 12/04/2024 10:12:08 AM PST by SunkenCiv (Putin should skip ahead to where he kills himself in the bunker.)
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To: SeekAndFind

We have a Nissan Altima.
Been a decent car. Some paint issues, a few recall issues and routine maintenance.
The serious problem is the dealership which refuses to honor warranty work or recall issues. Technique is to say “ Sure drop it off. We’ll get to it in a few weeks”.
We will never buy another Nissan.


15 posted on 12/04/2024 10:12:20 AM PST by sjmjax
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To: SeekAndFind

1. Global unit sales are down 3.8% to 1.59 million vehicles in the first half of this fiscal year.

2. Nissan is reducing global production capacity by 20%.

How can your sales be down less than 4% and you cut global production 20% That makes no sense...unless they are anticipating a 20% demand decrease.


16 posted on 12/04/2024 10:14:54 AM PST by ProtectOurFreedom (“Facts can be ignored, but their consequences cannot be escaped” -- Thomas Sowell)
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To: SeekAndFind

Very sad. My 2004 Nissan Quest bought in August, 2003. Gave it to my niece in 2018. Best car I ever had.


17 posted on 12/04/2024 10:16:57 AM PST by Chgogal
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To: Wuli

> The employees of such companies have to accept the fate delivered by poor executive decisions. <

To which I’d add: The employees will get a small severance pay. Then good luck finding another decent job, especially if you’re over 40.

But the executives will do okay. They usually get golden parachutes worth millions.

Life sure ain’t fair.


18 posted on 12/04/2024 10:17:30 AM PST by Leaning Right (It’s morning in America. Again.)
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To: SeekAndFind

Nissan was early to the electric vehicle market with the Leaf. I think it was Nissan and Tesla that were the first electric vehicle manufacturers. The Leaf was not a particularly good car with a 16 kilowatt battery having only about 50 miles of range. Probably a money loser.


19 posted on 12/04/2024 10:17:57 AM PST by webheart
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To: LeonardFMason

I am on my third car with a CVT, and never had a single issue with it in any of them, close to 100k miles on each of them. Is this a specific Nissan design? I have heard some people don’t like them (the way they manage the power transmission to drive the wheels) but I have been pretty satisfied with the performance and the reliability.

I have more issues with things like using key fobs on every car, and all the electronic driving aids that I absolutely abhor such as the lane change, auto- brake, etc.

That said, I just love the adaptive cruise control and backup cameras on cars. Those technologies I will fully embrace...:)


20 posted on 12/04/2024 10:19:13 AM PST by rlmorel ("A people that elect corrupt politicians are not victims...but accomplices." George Orwell)
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