After exclusive bet on electric vehicles, Nissan faces financial crisis and uncertain future (Nadia – Unsplash)
Nissan is facing serious financial problems due to its decision to abandon hybrids and focus exclusively on electric vehicles.
CEO Makoto Uchida, who led this shift, may see his mandate compromised, as this strategy is seen as one of the main causes of the company’s current troubles.
Internally, managers have expressed concerns about the lack of hybrid models for the U.S. market, believing that demand for these vehicles would not last. Uchida, for his part, acknowledged that he did not foresee the rapid rise in demand until recently.
Although sales in North America increased by 1.7% compared to 2023, the luxury brand Infiniti saw a 12.8% decline, leading to an overall 2.2% drop in Nissan Group’s sales in the region. However, much of this growth is driven by incentives that impact the company’s profitability. The situation is even more concerning in China, where sales dropped by 13.1%.
Nissan has already announced a recovery plan, with the introduction of 16 new hybrid systems by 2027. However, the company’s future depends on its ability to quickly reverse its financial situation and survive until these goals are achieved.
Amid a drastic drop in profits, with a 90% reduction in operating profit and a 94% drop in net income, Uchida introduced cost-cutting measures and reforms, but the success of these actions remains uncertain.
Source: Motor1.com | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team
