Is Nissan in Major Trouble?! Can Nissan Survive Its Recent Troubles?

Is Nissan Going BANKRUPT?! Major Car Company CRISIS! I hope I’m wrong but Nissan maybe in a death spiral. Let me explain. Nissan lost nearly every dollar that it made last quarter. This is a very serious situation. And now Nissan is offering buyouts to salaried workers as U.S. as its business slides. In addition, according to CEO Makoto Uchida, states it used incentives to help convince U.S. customers to actually buy its cars.

The automaker's profits fell 99% in its first quarter, running from April 1 through June 30, sending its stock plummeting nearly 11% before briefly recovering. In the entire quarter, the automaker profited just $6.5 million versus $835.5 million the year prior.

The U.S. and China typically make up 51% of Nissan's automotive sales volume. The problem is, Americans aren't buying Nissans like they used to, even with new products. This has led to the automaker forced to throw piles of cash in the form of incentives and discounts on the hoods of its cars and significantly increase its advertising efforts to stay competitive.

They are the only two markets where it sold more than 100,000 vehicles in the first quarter. Japan, its home market, is its third-largest market by sales.

Nissan even offered their dealers cash to take inventory back in March, sliding as much as $2,000 to retailers willing to take inventory of unsold Nissan Rogues. And, yes, customers noticed on social media sites and questioned why there were so many "New" 2023 Nissans on the lot when 2024 models had already been on sale for some time. On top of the dealer incentives, Nissan also offered 0% financing on some models while prime auto loan interest rates were still sky-high.

Another major issue is the lack of innovative cars in a changing car market. Nissan only makes two EVs today: Nissan Leaf and the Nissan Ariya and sales are not as expected. It also lacks any hybrid options, technically-advanced features, and other popular items in a modern vehicle. Consumers paying top-dollar for a new vehicle want modern interiors, easy to use buttons and large screens, and Nissan simply hasn't been delivering these in recent years.

As traditional automakers like Hyundai, Kia, Toyota, Honda and Ford have upped their technology, safety and powertrains, Nissan has been struggling? Apparently struggling to drive interest in their gas-powered Rogue.

The automaker's newest flagship EV, the Ariya, is an export from Japan, making it ineligible for the $7,500 federal tax credit. The only exception is if the car is leased, which Nissan used to its advantage, eventually dropping the electric SUV's lease price to as low as $199 per month. On top of the low monthly payment, Nissan also offered $9,280 in lease cash, $1,000 in bonus cash, and another $1,000 in loyalty cash. All of that comes to $3,780 over the federal tax credit. That’s a deal if you are in the EV car market.

Nissan has committed to launching seven new hybrids and EVs in the U.S. by 2028. Nissan will still need to convince customers to purchase its cars over the next four years while it prepares a new lineup, and hopes to do that by refreshing 60% of its ICE-powered cars by next year. As the market demand changes, Nissan will need to consider hybrid, electric and gas powered vehicles across the complete lineup to be competitive.

Nissan states "However, we'll recover our performance by taking clear measures to address the challenges and launching new models."

If you are shopping for a new vehicles, there are some good deals at Nissan and Infiniti. I do fear for their future as they brand cuts output and asks older employees to retire early. We will be watching closely as the year continues and keep you posted.

Thanks for watching!

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