Nissan's Crisis Worsens: A Slow-Motion Collapse

Nissan’s financial turmoil isn’t just continuing—it’s accelerating. Despite desperate cost-cutting measures and restructuring efforts, the company’s losses are mounting, its market position is eroding, and its future looks more precarious than ever.

Bleeding Cash, Bleeding Market Share

Nissan’s latest financial results show that its troubles are far from over. The company has now posted losses for three consecutive quarters, with operating profit plunging 87% year-over-year. This isn’t just a temporary slump—it’s the sign of a company in structural decline. While Nissan slashes costs, its competitors are surging ahead, widening the gap in profitability, innovation, and market presence.

In China, once a critical market, Nissan is fading into irrelevance. Last year, the company sold a mere 3,100 vehicles in a market that moved over 80 million units. That’s not a decline—it’s an extinction event in slow motion. Meanwhile, in the U.S., Nissan’s reliance on Mexico for manufacturing leaves it dangerously exposed to Trump’s proposed 25% tariffs. If those tariffs go through, Nissan will either have to eat the cost—further deepening its financial woes—or pass it on to consumers, destroying its competitiveness.

Factory Shutdowns and Mass Layoffs

Nissan's cost-cutting plans are more drastic than previously thought. The company is shutting down entire plants, not just production lines. While official reports mention closures in the U.S., China, and Thailand, the real impact could be far greater, with at least seven facilities shuttered in the past year alone. Job cuts continue to mount, with at least 2,500 positions eliminated—though previous internal estimates suggested 9,000 layoffs, raising questions about undisclosed downsizing.

Refusing a Lifeline from Honda

One of Nissan’s last chances for survival was a proposed merger with Honda. The deal would have effectively been an acquisition, giving Nissan the financial backing to weather its crisis. But Nissan’s leadership rejected the offer, unwilling to give up independence—even as the company circles the drain.

Honda’s leadership wasn’t even able to justify why absorbing Nissan would be beneficial, highlighting the one-sided nature of the potential deal. Now, with no other suitors in sight, Nissan may have squandered its last chance at survival on sheer stubbornness.

A $7 Billion Debt Crisis

Even if Nissan’s cost-cutting efforts produce short-term savings, they won’t be enough to cover the company’s looming debt obligations. Nissan faces a $7 billion repayment in the near term—money it simply doesn’t have. The company’s junk credit rating means it pays significantly higher interest rates than competitors, making it even harder to climb out of the hole. If Nissan defaults, the fallout could be catastrophic, triggering asset sales or even forced restructuring by creditors.

The Road to 2030 Looks Grim

Nissan’s slow decline is leading to one of two outcomes: a forced sale to a foreign automaker, likely a Chinese company like Geely, or a complete financial collapse. If no buyer steps in, Nissan may not even make it to 2030 as an independent entity.

For now, the company is in freefall, with no credible turnaround strategy in sight. If Nissan’s leadership doesn’t act fast—or if external intervention doesn’t come soon—its fate may already be sealed.