Nissan, one of the most iconic automakers in the world, is facing a critical moment in its journey. After years of instability linked to the Carlos Ghosn scandal and a partial recovery under the leadership of Makoto Uchida, the company is now struggling to adapt to the rapid changes in global markets. With massive layoffs and significant challenges in China and the United States, the Japanese automaker urgently needs to redefine its strategic vision. This article examines the factors that led to the current crisis and explores the possibilities for Nissan’s future.
Nissan’s Crisis Exposes Strategic Failures in the Global Market
Nissan has been facing periodic crises that seem to arise in regular cycles. From the scandal involving Carlos Ghosn in 2018 to the recent announcements of layoffs, the automaker demonstrates difficulties in anticipating transformations in the global automotive market. The poor forecasting of changes, especially in key regions like China and the United States, has contributed to the current scenario.
The Chinese market, for example, has undergone rapid maturation, while local manufacturers have intensified competition with electric vehicles (EVs) and plug-in hybrid models. In the U.S., reliance on sales incentives has hurt the resale value of the brand’s cars, driving consumers away. These strategic errors highlight the need for a deep review of Nissan’s corporate decisions.
Impact of the Partnership with Dongfeng on Nissan’s Crisis in China
Nissan’s bet on a single partnership with Dongfeng Motor in China initially yielded positive results. The strategy allowed the automaker to expand its market share in China and strengthen relationships with the local government. However, this decision eventually became a weak point as the market matured and the economy slowed down.
Local Chinese manufacturers began to dominate the EV and hybrid vehicle segment with competitive pricing, putting pressure on Nissan. The lack of diversified partnerships, adopted by competitors like Toyota and Honda, left the automaker vulnerable. This case illustrates how strategic decisions can have long-lasting consequences, especially in dynamic markets like China.
Sales Strategy Fails in Nissan’s American Market
In the United States, Nissan initially succeeded by adopting a “quality over quantity” approach. During the pandemic, the company prioritized delivering higher-value products, which generated good temporary results. However, the return to old practices, such as aggressive sales incentives, compromised the brand’s perceived value.
Frequent discounts reduced the resale value of vehicles, demotivating potential customers. Additionally, delays in launching new annual models further harmed Nissan’s competitiveness. The American market demands continuous innovation, and the automaker seems to have lost the necessary timing to stay relevant.
Nissan’s Future Plans Could Redefine Its Trajectory
The “Nissan NEXT” restructuring plan was widely regarded as a success, helping stabilize the company after the chaos following Ghosn. However, the subsequent “Nissan Ambition 2030” was criticized for its lack of clarity and boldness. The absence of innovative decisions after “Nissan NEXT” resulted in a delayed response to market changes.
For the future, Nissan needs to balance operational optimization with a realistic and innovative vision. Investments in energy management and the development of attractive products are essential. Moreover, the automaker should explore new partnerships and technologies to regain its position in the global landscape. The next step will be crucial in determining whether Nissan can overcome its current crisis.
