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NISSAN IN CRISIS, “12 OR 14 MONTHS TO SURVIVE,” AS SIZE, DIFFICULT CONDITIONS
FOR NON-CHINA CARMAKERS MAKE RESCUE SEEM REMOTE

Posted on December 2, 2024 by Yves Smith

The car industry ex China is reeling, between conventional car markers having
trouble adapting to the EV/hybrid world (where EV new entrants have considerable
advantages via the vehicles’ much lower mechanical complexity), European
manufacturers being whacked by the new normal of much higher energy prices, and
Trump tariffs disrupting supply chains to the critically important US market.
We’ll examine with the dire straits at Nissan, once a bedrock maker of solid
mid-range cars (I have some fondness for Nissan; the first car I drove regularly
was my parents’ second car, a lime green Datsun), as a new window into these
accelerating problems



Readers are invited to pile on, since I am not a vehicle maven and are likely
quite a few issues from the customer or product/product line end that we’ll skip
over in getting to the broad outlines of the precipitous decline of a
once-storied company. The fall of Nissan, as far as I can tell, does not have a
simple though line, unlike Boeing (“Great engineering company merges with
defense contractor run by beancounters and financiers, putting the money men in
charge, who proceed to cost cut and disinvest into bad products and
performance”).

Regulars no doubt have noticed our pointing to unheard of factory closings by
Volkswagen in Germany, a direct casualty of the decision to cut the EU off from
cheap Russian energy as much as possible and a poster child of the blowback to
European manufacturers. But before we turn to Nissan, a new story at the
Financial Times shows the extent to which other established Western carmarkers
are struggling. From Stellantis chief executive Carlos Tavares resigns:



> Stellantis chief executive Carlos Tavares has resigned following a sharp
> decline in financial performance at the world’s fourth-largest carmaker,
> marking an abrupt exit for one of the automotive industry’s most high-profile
> leaders.
> 
> In a statement on Sunday, Stellantis, which owns the Peugeot, Fiat and Jeep
> brands, said the company’s board accepted the resignation of Tavares…
> 
> 
> 
> People familiar with Tavares’ departure said there were increasing tensions
> between him and other Stellantis board members on how to put the company back
> on track following a steep decline in reported profits in 2024 due to slumping
> sales in the US and Europe. Stellantis’ shares have fallen 43 per cent this
> year.

Mind you, Stellanis is not in serious financial trouble. The pink paper notes
that even with negative 2024 cash flow on the order of €5 billion to €10
billion, still has a very solid balance sheet.1



Nissan as of early November initiated an emergency turnaround plan after a
second cut to its 2024 profit forecasts. But the coverage in major outlets like
the Financial Times described the deep cuts planned without even mentioning the
impending cash crunch (might the reason be that the Financial Times is Japanese
owned?). From its account then:

> Nissan has launched an emergency turnaround plan that includes 9,000 job
> losses and a voluntary 50 per cent pay cut for chief executive Makoto Uchida
> after unveiling it had fallen to a quarterly loss.
> 
> Japan’s third-largest carmaker said it would slash global production capacity
> by 20 per cent and cut costs by ¥400bn ($2.6bn). It downgraded its full-year
> profit forecast for the second time this year, this time by 70 per cent.
> 
> The crisis at Nissan came as it failed to counter a slowdown in global
> electric vehicle sales with a strong hybrid offering, which has helped rivals
> Toyota and Honda….
> 
> As part of the measures, Nissan also cut its stake in alliance partner
> Mitsubishi Motors on Thursday from 34 per cent to 24 per cent to bolster its
> balance sheet.
> 
> Nissan recently turned to a partnership with Honda to survive the competition
> after a long-standing alliance with France’s Renault significantly weakened in
> recent years. The two Japanese companies plan to roll out a new electric
> vehicle before the end of the decade and jointly develop software to go
> toe-to-toe with Chinese rivals.

This additional tidbit from the Guardian account on the same date:

> The company said it was facing a severe situation as it battled with higher
> costs for sales and in its factories, as well as having too many cars with
> dealers in the US in particular, which can force the company to give steep
> discounts.

If “severe situation” is an exact translation (or what was said in English,
since Japanese executives tend to use Japanese formulations in their spoken
English), that is Stage 4 disease level dire.

And indeed, less than two weeks later, keying off the November 7 presentation,
from Nikkei Asia Nissan bleeds cash as sales slump and expenses mount:

> The company’s cash flows reflect its struggles. Operating cash flow for its
> automotive business in April-September came to minus 234 billion yen. In
> addition to slow sales, the piling up of inventory has been among the
> contributing factors.
> 
> Nissan’s cash flow for capital investments for the period reached minus 214.3
> billion yen. Combined, overall free cash flow totaled minus 448.3 billion yen.
> In the first half of the previous fiscal year, the company saw a positive free
> cash flow of 193.9 billion yen.
> 
> Compared with other April-September periods, the cash flow deficit is close to
> the 504.6 billion yen recorded in 2020, during the coronavirus pandemic. It
> exceeds the minus 414.9 billion yen recorded in 2019, when Nissan announced a
> global downsizing and laid off about 12,500 employees.
> 
> Due mainly to the deterioration of its free cash flow, Nissan’s cash and
> equivalents on hand stood at about 1.4 trillion yen at the end of September,
> down 575.9 billion yen from the end of March. But for now, the company’s cash
> on hand itself is still sizeable, so “the financing risk is minor,” said Takao
> Matsuzaka, chief analyst at Daiwa Securities.
> 
> Concerns about raising funds in the medium-to-long term are emerging, due in
> part to a decline in creditworthiness. On Nov. 8, S&P Global said that if the
> company cannot stabilize its earnings, downward pressure on its
> creditworthiness will intensify.
> 
> S&P has given Nissan a long-term issuer rating of BB+, below investment grade,
> while Japan’s Rating and Investment Information classifies it as A and Moody’s
> ranks it at Baa3, the lowest of its investment-grade ratings.

More recent statements by company insiders belie the cheery take by the Daiwa
analyst, particularly in light of the junk/borderline junk and deteriorating
credit outlook. Nikkei describes in some detail how the higher interest rate
environment versus bond refinancings needed starting in March 2026 are looming.
It then continues:

> Another concern is that operating and investing cash flows are likely to
> continue to be negative. Although the company aims to reduce fixed and
> variable costs by 400 billion yen per year by cutting jobs and production, it
> has few prospects for new products that would significantly improve the
> balance of payments in the near future.

A November 26 Financial Times story similarly signaled distress. From Nissan
seeks anchor investor to help it through make-or-break 12 months. The new source
of woes is that the Nissan-Renault tie-up, which a headline search shows have
been wobbly for a while, is now moving towards a breakup:

> Nissan is searching for an anchor investor to help it survive a make-or-break
> year as longtime partner Renault sells down its holding in the crisis-hit
> Japanese carmaker.
> 
> 
> 
> Two people with knowledge of the talks said Nissan was seeking a long-term,
> steady shareholder such as a bank or insurance group to replace some of
> Renault’s equity holding, as Nissan finalises the terms of its new electric
> vehicle partnership with arch-rival Honda.
> 
> “We have 12 or 14 months to survive,” said a senior official close to Nissan.

The article floats the cheery idea that perhaps Honda will take Renault out of
its stake, since the two have increased their business collaboration. Hardcore
car sites dismiss the notion as not not in Honda’s interest, both by virtue of
the sheer size of the investment and Nissan’s cash-bleeding state. Of course, it
is possible that the Japanese government could pressure Honda into making a
rescue (but why should a Japanese car maker go that far in accommodating a
European one?). That might not be so crazy if Nissan got some bond financing
guarantees, as did Chrysler in its bailout. Another possibility is Japanese
insurers are muscled into helping a deal, reducing the load on a Honda.

One has to think that ultimately Nissan is too big to fail from a Japanese
perspective, as the US Big Three were after the global financial crisis.
Remember what is at risk is not just Nissan’s direct employment but also that of
its many subcontractors. But I welcome input from any readers plugged into
current views in Japan.

Note that aside from the rate of the cash burn, circling vultures are adding to
the sense of urgency. Again from the Financial Times:

> But the search for an anchor investor has become even more critical with the
> turmoil at Nissan attracting investments from Singapore-based Effissimo
> Capital Management and Hong Kong’s Oasis Management, two of the most
> high-profile activists in Asia whose campaigns have previously targeted the
> likes of Toshiba and Nintendo. 

Interestingly, the Daily Mail has just published two good new pieces on Nissan
going into a financial nosedive. Nissan is of interest due to its manufacturing
plant in Sunderland. While a big chunk of the story re-reports the Financial
Times, Major car manufacturer ‘on the brink of collapse’ as official claims
company has ‘just 12 months to survive,’ it identified additional stressors:

> Nissan also last month called for urgent action to avoid car makers being
> penalised for the slowdown in electric vehicle sales in the UK which the firm
> blamed on outdated targets in the country’s Zero Emissions Vehicles Mandate.
> 
> The mandate forces firms to increase the proportion of EVs they sell each year
> until a total ban on new petrol and diesel motors in 2030.
> 
> This year, EVs must make up 22 per cent of a firm’s car sales and 10 per cent
> of van sales, with the threshold rising annually and makers facing a £15,000
> fine for every sale beyond it.
> 
> Labour’s 2030 target is five years earlier than that set by former Tory prime
> minister Rishi Sunak.
> 
> And Nissan said that missing the target would lead to significant fines for
> manufacturers unless credits are purchased from EV-only brands – none of which
> manufacture in the UK….
> 
> The Society of Motor Manufacturers and Traders has voiced fears that the pace
> of the transition could hit car makers as demand for zero-emission vehicles
> ‘failed to meet ambition’.
> 
> The organisation forecasts a slowdown in consumer demand meant EV sales would
> only reach 18.5 per cent of the total market, against the 2024 ZEV Mandate
> target of 22 per cent.

The newer Daily Mail account gave a bit more detail on some of Nissan’s
emergency responses:

> Nissan’s head of manufacturing Hideyuki Sakamoto told a news conference last
> month: ‘Globally, we currently have 25 vehicle production lines. Our current
> plan is to reduce the operational maximum capacity of these 25 lines by 20 per
> cent.
> 
> ‘One specific method for this is to change the line speed and shift patterns,
> thereby increasing the efficiency of operational personnel.’

This video, which gives a short-form look at Nissan’s product and sales problems
in many key markets, takes issue with the idea that production cuts are a
solution. Or to echo the language uses above, that Nissan can achieve
efficiencies with so much investment in fixed production lines. As we have said
repeatedly, direct factory labor is a small part of total car costs, estimated
typically at 3%. So if you cut volumes, you will don’t do much to reduce
variable costs while fully loaded costs can (will?) be higher on a unit basis.

Other useful topics are the consequences of Nissan not having a hybrid for the
US market, the damage done by a big 2023 year end inventory overhang, and China
eating Nissan’s lunch in Southeast Asia, with Thailand as the poster child (loss
of 80% of dealer employees):



The quick takes on Nissan are much less kind. If things are this bad on the
product side, it’s not easy to see how Nissan can be salvaged:





Again, we’ll see how much Nissan is serving as an early warning of how bad
things can get at other automaker soon enough. And don’t forget that the Trump
tariffs are set to be a big spanner as far as teh critically important US market
is concerned.
____

1 This section from a Magic Markets podcast gives an idea of some of Stellantis’
tsuris:

> If we move on quickly to Stellantis, the polony as we like to call it, all of
> the brands that sort of don’t really belong together. But Stellantis is trying
> their best to bring them together by building platforms that all these brands
> then share. Unfortunately, what that does is it somewhat dilutes the brand
> value and the heritage.
> 
> South America was their only good news story. Much like at Volkswagen, which
> is why I said it’s a bit odd. In Q3, South America was up 14% and the rest was
> just a mess. North America down 36%, which is ridiculous. Stellantis cannot
> sell Jeeps. It’s just incredible. Europe down 17%, so they can’t sell Citrons
> and Peugeot and Alfas and Fiats in Europe. It’s not good. Alas, my beloved
> Maserati, my favorite car brand of all, down 60% in terms of unit sales. But
> the product range is just really silly at the moment. So it’s no real
> surprise. Stellantis has pretty much been making a mess of almost everything
> they’ve touched for a while. No good news there then.






This entry was posted in Auto industry, China, Credit markets, Economic
fundamentals, Europe, Globalization, Japan on December 2, 2024 by Yves Smith.


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SUBSCRIBE TO POST COMMENTS
23 COMMENTS

 1.  Paul Greenwood December 2, 2024 at 7:08 am
     
     Nissan once had a nice line-up with 280Z and Laurel and Patrol. They lost
     their edge. The tie up with Renault brought them into Daimler-Benz where
     Renault had a tie-up. Nissan diesels were in Mercedes vans and the Mercedes
     pick-up was originally a Nissan Navarra I believe.
     
     Anyway Nissan diesels were EU Certified by France and gave Mercedes a
     reputation for dirty engines way outside the EU norms. Nissan had a
     reputation for dirty diesels and that cost them.
     
     Daimler unwound the Renault deal snd the Chinese became the main
     shareholders with Geely and Horse Power International Corp making ICE power
     plants in China
     
     Thus Europe has given up ICE manufacturing and will rely on China. Since
     EVs do not sell and have zero resale as batteries are 40% price it is a bad
     time to find U.K. and Germany destroying their steel industry.
     
     Hard to see how you make cars if you import steel and batteries and then
     have the EU local content problem whereby you incur tariffs and Nissan was
     U.K. biggest car exporter to EU
     
     Reply ↓
     
 2.  Mikerw0 December 2, 2024 at 7:30 am
     
     I wonder if something else isn’t going on, namely the lower level of auto
     sales is yet another victim of the end of the sugar rush and distortions of
     protected zero interest rates. Like housing, people look at their monthly
     payment(s) in deciding what to do. Despite subsidized financing from the
     auto companies people just can keep to afford buying cars at the pre
     pandemic levels. According to FRED, in the teens to the pandemic US car and
     light truck sales ran circa 17 million units per year. We had a surge,
     pent-up demand, coming out of the pandemic supply disruptions and have
     settled into the 15 – 16 million range. As auto companies have high
     operating and financial leverage it is no surprise that some are now under
     stress.
     
     Reply ↓
     1. Louis Fyne December 2, 2024 at 8:22 am
        
        death by 990 small cuts and 10 big ones.
        
        lot of different cross-currents….one of which: the world has too many
        mainstream brands, from the established names to Chinese newcomers
        (Xiaomi).
        
        the industry is hyper-competitive, particularly in China. The Japanese
        market is structurally shrinking. Nissan had an (IMO) awful US line-up,
        despite one or two gems. And creating a “luxury” division in the 80’s
        that became a lead weight around 2008 didn’t help.
        
        then (to bury the lede) throw in lousy management.
        
        Reply ↓
        
     2. Roquentin December 2, 2024 at 8:28 am
        
        Interest rates combined with much higher auto prices post COVID are
        definitely part of it. Higher financing costs cut into affordability and
        tamp down demand.
        
        I also think the cars currently hitting the market were designed for a
        different economic environment. More people were targeting something
        close to luxury vehicles with higher price tags instead of releasing
        bare bones economy models at a lower price point. Now there’s a glut of
        expensive vehicles most people can’t afford.
        
        Reply ↓
        
     3. Paul Greenwood December 2, 2024 at 10:10 am
        
        You do realise car prices have doubled inntjevpadt decade ? In 2016 a
        Ford Fiesta kn U.K. cost £10,345 and in 2023 it cost £19,350
        
        Nissan Qashqai from £18,545 to £30,135
        
        Incomes in U.K. stagnated after 2008
        
        Cheapest VW Golf in Germany €31,145
        2021 it cost €20,700
        
        50 years ago average car price Germany was 38% annual average salary
        today 2024?it is 10 months average salary
        
        Reply ↓
        
     
 3.  Wukchumni December 2, 2024 at 7:56 am
     
     My first cool car was a used 1976 280Z that I bought in 1980, a reliable
     Japanese E-type of sorts…
     
     Got my Tacoma serviced last month at the dealership and walked around
     looking at their pathetic new car inventory, which had quite a few Tundras
     and a Sequoia with a MSRP of $90k that must have had $40k in cash stuffed
     into the glovebox, as I couldn’t see the added on value otherwise. Maybe
     they had 40 new cars in stock.
     
     Next door at the Nissan dealership, the lot was well and truly loaded to
     capacity with new cars and no idle space, twas like an out of balance yin
     and yang-the 2 Nippon dealerships.
     
     Reply ↓
     1. Carolinian December 2, 2024 at 8:25 am
        
        I was a Toyota person, then a Nissan person, now a Hyundai person. So
        far the Hyundai has given me the least trouble but my Nissan lasted a
        long time (with my help).
        
        And the car maven take as I understand it is that Nissan started going
        downhill when it hooked up with Renault early this century. Before that
        Nissans were considered to be as reliable as Toyota but with a bit more
        cutting edge engineering.
        
        Reply ↓
        1. BeliTsari December 2, 2024 at 10:28 am
           
           ’97 Altima lasted forever. We enjoyed a common-rail diesel in Germany
           in 2003 (Sunderland?) but switched to a Kraut designed Hyundai i30CW
           after 240K. Now that Biden’s forbidden BYD’s PHEVs (watch Trump let
           them in from Mexico) or simply electrify a bike? There’s a Tesla
           Cybertruck up W85th, that’s yet to burst into flames & burn up the
           surrounding Kias & Rivians. If you post about Tesla’s fatality-rate &
           trapped passengers, X shadow-bans you, so nobody knows how close we
           are to Carmaggedon?
           
           Reply ↓
           
        
     2. Louis Fyne December 2, 2024 at 9:41 am
        
        the closest things to affordable pick-ups are the Ford Maverick and
        Hyundai Santa Cruz.
        
        Whole bunch of reasons the carmakers don’t want to sell <$45,000 pickups
        
        Reply ↓
        
     
 4.  NotThePilot December 2, 2024 at 8:06 am
     
     It’s maybe only a bit better than hearsay / anecdata, but when I was
     looking for a car a few years ago, I repeatedly came across warnings about
     Nissan specifically among the Japanese brands. People would just casually
     make them too, or even react with jokes, like it was common knowledge (in
     car magazines, on web forums, personal convos).
     
     It may not have been entirely fair because IIRC the issues were more
     prevalent in the early 2010s, but corrosion (relatively poor steel in the
     frames) and CVTs burning out were the big ones. Transmission replacements
     in particular have a way of scaring people off, myself included. On the
     flip side, I do know some people who felt good about their Sentras or
     Altimas as starter cars.
     
     More generally than the lack of a hybrid / battery EV offering though, I
     don’t think they had a strong way to stand out among competitors except
     going cheap. Toyota has the Prius, Honda has standout ICE features, Subaru
     has AWD & other outdoor-friendly designs, and Mazda keeps some unique
     selling points. To compete in that space with only a lower price and a
     reputation for poor quality? I’m not surprised they’re struggling.
     
     Reply ↓
     1. petal December 2, 2024 at 8:24 am
        
        Same. Everyone I’ve known that had a Nissan in say the past 15 years has
        had a lot of big problems with them and warned me off. They swore they’d
        never get another one.
        
        Reply ↓
        1. Jackiebass63 December 2, 2024 at 9:24 am
           
           That is why I won’t buy a Nissan. Their reliability isn’t good. I
           want a vehicle I can drive that doesn’t have any problems. My last
           few vehicles have been Toyotas. Other than routine maintenance I
           haven’t had a single problem.
           
           Reply ↓
           
        
     2. Louis Fyne December 2, 2024 at 9:23 am
        
        it is not hearsay. early failure of Jatco CVTs (Nissan subsidiary)
        crippled Nissan’s reputation as a reliable “Japanese” brand
        
        Reply ↓
        
     3. Louis Fyne December 2, 2024 at 9:28 am
        
        (IMO) anothet product to a absolutely avoid is Nissan’s 3-cylinder
        variable displacement engine found in the Nissan Rogue…a Rube Goldberg
        contraption serving as an engi e
        
        IMO
        
        Reply ↓
        
     
 5.  Chas December 2, 2024 at 8:11 am
     
     We bought a Nissan all-electric Ariya last April and it is an excellent
     car. We had a Leaf for five years before that and the Ariya is a big
     improvement. It has over 300 miles of range in warm weather, four wheel
     drive, comfortable, and great in the snow. A better car than a Tesla imho
     and is still eligible for the $7,500 tax credit. I hope Nissan stays in
     business long enough to honor the warranty, if needed.
     
     Reply ↓
     
 6.  Louis Fyne December 2, 2024 at 8:17 am
     
     Long-winded headline should read: Japanese car maker gets taken over by
     non-Japanese management style and forgets its Japanese roots (consistently
     hitting singles instead of always swinging for a home run, continual
     improvement. long-term planning). Hilarity ensues.
     
     Reply ↓
     1. Louis Fyne December 2, 2024 at 9:22 am
        
        another aspect is that US vehicle sales have not matched pre-Covid
        highs….
        
        and the vehicles that did sell were pickups and mid-size and bigger
        crossovers …an area in which Nissan has a weak portfolio
        
        Reply ↓
        
     
 7.  Hastalavictoria December 2, 2024 at 9:01 am
     
     Nissan old technology works. Cars frankly bore me but 11 years ago I bought
     a brand new Dacia Duster – cost 14 k – which from new has done 115k
     miles,with just a regular service and tyre changes etc.
     
     I bought it on the advice of a Rumanian car freak who worked for me who btw
     has been so successful in the UK motor business that he now drives a
     Maserati!
     
     His advice – Buy the Nissan Renault model made in Rumania with technology 8
     to 10 years old but well proved.
     
     His advice seems to have been correct.From being the first adopter in my
     area they are now everywhere and especially popular in France I believe.
     
     Reply ↓
     
 8.  TheMog December 2, 2024 at 9:11 am
     
     Mostly writing this as a car enthusiast, so there are a few opinions ahead.
     
     Datsun/Nissan used to be a brand that had vehicles that appealed to a broad
     spectrum of people, including the enthusiasts that friends and family would
     ask for advice when it came to purchasing the next family hauler appliance.
     I – and I know I’m not the only enthusiast out there who has to do this –
     actually had a brief look at their website before writing this because I
     couldn’t remember what the Nissan lineup even looked like these days. Heck,
     I even forgot about the Ariya that Chas mentioned above, and I’m somewhat
     EV-curious these days. Oddly enough I know more about Hyundai’s electric
     offerings than Nissan’s, and I’m pretty sure Nissan advertises theirs more.
     
     That said, the rest of the lineup comes across as pretty old. I seem to
     remember that during the reign of King Carlos (of Renault, not of Spain)
     that investments at Nissan had lower priority than investments at Renault,
     with the techonology transfer mostly going to Renault, too. Might have to
     spend some time digging into this, though. I think that’s showing in their
     line up as most of the cars don’t appear to have changed much, if anything
     in the last 5-10 years. Plus, not many of them have a reputation of being
     great and a top choice – most of them are more “ah yes, I guess they also
     make one of these”. Nissan in the US also seem to mostly cater to the same
     demographic that Mitsubishi has been catering to for a while now, ie cars
     for people who don’t have the most stellar credit and need/want a brand new
     car. That seems to impact the resale value, for starters.
     
     Which brings me to the enthusiast offering and halo cars. Nissan USA has
     two of those – the 400Z, and the GT-R. The 400Z looks pretty decent on
     paper so given that Subaru/Toyota and Mazda don’t seem to have that many
     problems selling a fair number of sporty two-seater(ish) cars, albeit at
     $10k less a pop, one would think Nissan shouldn’t have much trouble
     shifting a reasonable number of 400Zs priced in the mid-40s. Instead,
     someone on a sports car forum I’m on recently asked if anyone had actually
     seen one in the wild. Apparently some had been spotted in the greater LA
     area, but otherwise, zilch.
     
     Which brings us to their halo car, the GT-R. When it came out in 2008, it
     was a technological tour de force that played in Porsche 911 turbo
     territory performance wise, but for “regular” non-turbo 911 money. They’re
     still selling this model in 2024 and while performance and price have gone
     up, competitors like Porsche are several model generations past where they
     were in 2008. That’s for a car that’s MSRP’d somewhere in the $120k-$150k
     range depending on exact model, although I wouldn’t be surprised if Nissan
     isn’t making any money off them. Keep in mind that the previous three
     generations of the Nissan (Skyline) GT-R together were only sold for 13
     model years altogether, and each generation was a noticeable improvement
     over the previous one.
     
     All in all, I can’t say I’m surprised by these news, and I suspect that
     (probably due to financial constraints) they weren’t able to keep up
     developing vehicles the same way their competitors did and probably ended
     up riding the elevator all the way down as a result. Plus, with inflation
     being what it was/is and the general resulting belt tightening, most car
     manufacturers are hurting so it’s not a surprise that it’ll affect the
     weaker members of the herd first.
     
     Reply ↓
     
 9.  earthl December 2, 2024 at 9:34 am
     
     Not a vehicle maven either, and distressed at the buying process. Need to
     buy one that can go off road and tow. Toyotas are reliable quality, but the
     prices are insane no matter the age of the vehicle. They deliberately keep
     production low to keep prices high; there is essentially a shortage of
     quality vehicles in this category. Nissan should have a competitive entry
     in this category to meet the need, it does not.
     
     Lots of other car-makers have off-road offerings at better prices. And
     every one comes with warnings about poor quality and reliability. Can’t
     imagine how hard it must be to turn the ship of a car company to restore
     good quality, but that’s what a bunch of companies need to do right now.
     With prices of everything high, nobody can afford to go in debt for a year
     or two of salary, for an item of junky quality.
     
     Reply ↓
     
 10. owenfinn December 2, 2024 at 10:19 am
     
     Cars are a 20th century technology and Nissan may be the first major car
     company domino to go down.
     
     EVs won’t save the industry as an increasing number of cities around the
     world start to do what Paris is now doing – discouraging car use, or
     banning them outright.
     
     From what I understand(I live in Yokohama), even Toyota’s profits depend on
     their ability to squeeze their contractors – and they really cannot be
     squeezed anymore.
     
     Reply ↓
     
 11. ambrit December 2, 2024 at 10:47 am
     
     One major stressor that owning an “older” motor vehicle induces is the hunt
     for spare parts for repairs and renovations. My Dodge Chrysler vehicles are
     now both officially “dinosaurs.” One needs to find parts for them in the
     “bone yards.” Indeed, both of our D/C vehicles are fully discontinued now.
     Even aftermarket parts are thin on the ground.
     So, Nissan is entering a Death Spiral? It’s a sign of the impending major
     shake-out in the motor vehicle sphere.
     If this trend continues, expect to see a devolution of North American
     social structure back to the late eighteen-hundreds levels. The “lower
     classes” will be restricted in their physical, and thus social mobility. Do
     notice that there is no rational national policy concerning public
     transportation at present in America. Since public transportation projects
     follow the familiar long-term schedules common to big industrial and
     infrastructure development, this item of the public sphere might actually
     be abandoned.
     Welcome to the New World Order 2.0, where everything old is new again.
     Prepare to assume the position and end up barefoot and pregnant, or at
     least constipated.
     
     Reply ↓
     
 12. aj December 2, 2024 at 11:03 am
     
     Alternative Headline: “Companies surprised that Capitalism actually works.”
     
     After decades of reduced quality, feature creep, and raising prices,
     customers have eventually stopped buying. As someone else already mentioned
     above, vehicle prices have far outpaced inflation over the past few years.
     Meanwhile they keep cutting corners on reliability and make it harder and
     harder to repair your own car. If some car manufacturer would step in to
     sell a reliable car that had minimal features and fair price tag, I bet
     they could make a killing.
     
     Anecdotally, my niece just turned 16 and is trying to find a decent used
     car under $10k and is having a hell of a time. My first car I bought in
     1998 for $1500 was actually a Nissan Pulsar. It had it’s problems but was,
     relatively easy to work on (it had a manual transmission and zero power
     anything). And I kept it running for 4 years until it got totaled in a
     flood.
     
     My dad still has his Chevy 1500 pickup he bought in 1996 (and which I
     learned to drive on) and it has over 300k miles. Aside from some rust
     issues on the frame, the engine still runs good (but has been worked on a
     few times). Today’s cars seem to barely last 10 years.
     
     Reply ↓
     


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