The company has already announced drastic measures, including cutting 20,000 jobs—roughly 15% of its global workforce—and shutting down seven production plants worldwide. These steps form part of the ambitious Re:Nissan turnaround plan, which aims to restore profitability by 2027 but is met with skepticism given the scale of the challenges.
Nissan’s difficulties go beyond the numbers. It has fallen behind rivals in electrification and hybrid technology, debuting fewer new electric models than competitors like Toyota and Tesla. The Infiniti luxury brand is shrinking rapidly, with U.S. sales dropping drastically over the last decade. Meanwhile, a failed merger attempt with Honda has left Nissan without a strategic ally to help navigate the tough terrain.
Shareholders are increasingly restless, with dividend payments suspended and stock prices tumbling. The leadership shake-up, coupled with mounting debt challenges—more than $5 billion due next year—and supply chain woes portray a company struggling to turn the tide.
Industry insiders warn that without a successful merger or significant reinvention, Nissan could face bankruptcy or be forced into a fire sale by late 2025. However, optimism remains among some analysts who believe the company could survive as a smaller, leaner operation if it manages to execute its turnaround plan and secure the right partnership.
Nissan is fast-tracking new vehicle launches and aggressively cutting costs, betting on updated models and fresh technology to regain ground. But the road ahead is daunting. For the millions who own Nissan vehicles or consider buying one, the unfolding crisis raises serious questions about the brand’s future, warranty support, and resale value.
In the end, Nissan’s survival hinges on rapid adaptation and strategic alliances. Whether the storied Japanese automaker can rise from this crisis and reclaim its place remains a high-stakes gamble watched closely by industry and consumers alike.