Nissan Motor is in trouble. The company’s interim financial results ending in September 2024 showed a 90% decrease in consolidated operating profit compared to the same period last year. The company was forced to make large-scale staff cuts of up to 9,000 people and adjust its production capacity. This was due to the company being unable to launch hybrid vehicles (HVs), which are popular in North America, its main market, putting it at a disadvantage. The company is facing a critical moment as to whether it can achieve a V-shaped recovery and maintain its place as one of the “Big Three” domestic automakers alongside Toyota and Honda. ◇Misreading the trend “We are not providing products that meet the needs.” At last month’s interim financial results briefing, President Uchida Makoto explained why the company’s business recovery after the COVID-19 pandemic came to a sudden halt. The slump in the North American business was particularly severe, with operating profit falling into the red at 4.1 billion yen. The situation has changed dramatically from the past three years, when the company posted profits of around 200 billion yen. In the United States, the shift to electric vehicles (EVs) has been progressing due to growing environmental awareness, but recently it has stalled due to factors such as a lack of charging stations. Hybrid vehicles and other vehicles are experiencing a resurgence in popularity. Nissan does not have any major hybrid models, and its sales in the United States from April to September fell 2.7 percent from the same period last year. Desperate measures: The slump in the Chinese market also added to the problem, and global sales in April-September continued to fly low, falling 3.8% to 1.58 million units. During this period, the company increased sales incentives, which are used for discounts and preferential loan interest rates, in an effort to reduce inventory. Combined with the impact of price cuts, incentives paid to dealers increased by more than 100 billion yen in the six months compared to the same period last year. However, maintaining sales through large subsidies is a desperate measure that could give the impression of a “cheap car” and lead to a decline in the brand’s power. The bank’s cash reserves, which had been ample, also began to decline, with cash and deposits falling by 30% from 1.8964 trillion yen at the end of March to 1.3053 trillion yen at the end of September. ◇Trump tariffs (abbreviated) Jiji Press, Economic Department, December 6, 2024, 7:05 a.m.
A while ago, the Sylphy was a big seller in China, and now they’re doing stupid things like handing out incentives, like they did before Ghosn came along…
>>44 I think that will happen soon. The lineup is already so small that the only thing selling is the Note. The only thing left is commercial vehicles.
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