Summary
- Nissan experienced a 90% profit decline in the first half of 2024, highlighting deeper issues, including weak demand and operational inefficiencies.
- The company is losing market share to stronger rivals in the U.S., China, and Europe, especially in the EV segment.
- Infiniti struggles to compete, and the discontinuation of key models reveals Nissan’s market misalignment.
- Partnerships, such as with Honda, and revamping the Renault-Nissan-Mitsubishi alliance offer growth opportunities.
- Nissan needs more innovative EVs, strengthening the ICE lineup, and investing in R&D to stay competitive in a rapidly evolving market.
Not so long ago, Nissan played with the big boys in Japanese car manufacturing, such as Toyota and Honda. Nissan used to be a bigger, more reputable, and even exciting company at times with innovative models like the Leaf, the world’s first series-produced battery electric car, the supercar killer, the GT-R, and a luxury brand—Infiniti—that went neck and neck with Lexus and Acura; today Nissan is a shadow of its former self. With profits plunging throughout 2024, Nissan is navigating turbulent waters.
The ripple effects of the Carlos Ghosn scandal, a lagging EV strategy, and growing competition from traditional and emerging players in the automotive landscape have left Nissan at a critical juncture. However, despite the numerous challenges, the Japanese automaker still has a shot at survival and maybe even reclaiming its place on the global stage by joining forces with other companies but, most importantly, by realigning and innovating again.
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