Is Nissan going out of business? According to industry insiders, the automotive giant could cease operations in just 12 to 14 months without drastic changes. The company’s alarming 85% drop in third-quarter profits, coupled with the elimination of 7,000 jobs, signals severe financial distress.
In fact, Nissan’s current situation appears increasingly precarious with production capacity utilization at merely 64% of its 5 million-unit capability. The automotive manufacturer needs to sell between 3.2 and 3.3 million units just to break even, while implementing aggressive cost-cutting measures, including a 20% reduction in production capacity to save $3 billion. This analysis examines the factors behind Nissan’s struggles, their turnaround strategy, and what industry experts really think about the company’s chances of survival.
Current Signs of Nissan’s Financial Troubles
Recent financial reports paint a stark picture of Nissan’s mounting challenges. The Japanese automaker’s operating profit plummeted by 85% to 31.9 billion yen in the second quarter. Furthermore, revenue dropped by 5% to 2.99 trillion yen during this period.
85% drop in quarterly profits
The financial decline appears more severe than analysts anticipated. Operating profits fell far below the expected 66.8 billion yen consensus estimate. Subsequently, Nissan slashed its annual operating profit forecast by 70% to 150 billion yen. The company’s board decided to withhold interim dividends and scrapped the year-end dividend outlook.
Production cuts across major models
Nissan’s manufacturing operations face substantial reductions across its U.S. facilities. The company plans to cut production at its Smyrna, Tennessee, and Canton, Mississippi plants. These cuts specifically target popular models:
- Rogue crossover: Production reduced from five to four days weekly
- Frontier pickup: Weekly production decreased through March 31
- Altima sedan: Significant output reduction
- Pathfinder and Infiniti QX60 SUVs: Decreased manufacturing capacity
Notably, these production adjustments will result in approximately 63,000 fewer vehicles annually. The Rogue and Altima, representing 42% of U.S. sales last year, experienced auto sales decline of 9.5% and 11% respectively.
Job losses and restructuring plans
The scope of Nissan’s restructuring extends beyond production cuts. The automaker announced plans to eliminate 9,000 positions globally, representing about 6% of its 133,000-strong workforce. Consequently, the company aims to reduce fixed costs by 300 billion yen and variable costs by 100 billion yen.
Senior executives demonstrated commitment to cost reduction through personal sacrifice. CEO Makoto Uchida voluntarily forfeited 50% of his monthly compensation starting November, with other executive committee members following suit with pay cuts.
The severity of is nissan going out of business situation prompted the implementation of urgent measures. The company targets a 20% reduction in global manufacturing capacity. These aggressive cost-cutting initiatives aim to save approximately 400 billion yen (USD 2.61 billion) by the end of the current financial year.
Why Industry Experts Think Nissan is Struggling
Industry analysts point to several underlying factors behind the question “is nissan going out of business.” Three critical issues have emerged as primary concerns: an aging vehicle lineup, persistent quality control problems, and rapidly declining market share.
Aging product lineup
The automaker’s product portfolio has become significantly outdated, with many models remaining unchanged for nearly five years. Primarily, Nissan’s slow response to market demands has left it as one of the only major automakers without mild-hybrid or plug-in vehicles in its U.S. lineup. Moreover, the company’s global Chief Operating Officer admitted they failed to maintain their extensive lineup, stating “we went too fast to expand in the world”.
Quality control issues
Quality control problems have plagued Nissan’s operations, essentially undermining consumer confidence. An external investigation revealed that improper inspection procedures dated back to 1979. The severity of these issues led to:
- Uncertified employees conducting final vehicle checks
- Falsification of inspection documentation
- Multiple vehicle recalls affecting over 1.5 million vehicles
Additionally, the Japanese government discovered ongoing issues with the automaker’s practices, forcing temporary suspensions of new vehicle registrations.
Market share decline
The question “is nissan going out of business” becomes more pressing when examining their market position. Nissan’s U.S. market share has plummeted to 5.8%, down from 7.7% five years ago. Nevertheless, the impact on dealerships has been particularly severe:
Dealer profitability has reached its lowest point in 15 years, with almost 40% of Nissan’s 1,071 dealers losing money. Similarly, average dealer profits have decreased by an astounding 70% in the first half of 2024. The situation has become so dire that industry experts suggest reducing the dealer network by up to 40%.
The combination of these factors raises serious concerns about whether is nissan going out of business in 2024. The company’s dealerships currently sell approximately half the volume compared to competing Honda, Toyota, and Hyundai stores. This decline stems from multiple factors, including insufficient hybrid offerings and an oversaturated dealer network competing for an increasingly smaller market share.
Inside Nissan’s Turnaround Strategy

Amid mounting financial pressures, Nissan has unveiled an extensive restructuring plan to address the question of is nissan going out of business. The automaker’s leadership has implemented decisive measures to stabilize operations and ensure long-term sustainability.
Cost-cutting measures
Nissan’s financial recovery strategy primarily focuses on substantial cost reductions across its global operations. The company aims to achieve savings of 400 billion yen (USD 2.60 billion) through a comprehensive restructuring plan. These cost-cutting initiatives include:
- Reducing fixed costs by 300 billion yen
- Cutting variable costs by 100 billion yen
- Streamlining administrative operations
- Optimizing research and development spending
To achieve these targets, the company has appointed Guillaume Cartier as chief performance officer, effective December 1, to oversee sales and profit performance. Rather than closing manufacturing facilities, Nissan is focusing on consolidating production lines both domestically and internationally.
Production capacity reduction
The question “is nissan going out of business 2024” has prompted aggressive production adjustments. The manufacturer plans to reduce its global production capacity by 20%. This strategy involves significant changes at U.S. facilities:
Starting mid-April, the Smyrna, Tennessee plant will transition to a single shift on one production line. Similarly, the Canton, Mississippi facility, which manufactures the Altima sedan, will follow suit in September. Although these changes affect production schedules, Nissan will maintain two-shift operations for other lines producing the Pathfinder SUV and Frontier pickup.
The company projects resuming two-shift production at both assembly plants when new models are introduced in 2027 and 2028. This calculated approach aims to optimize efficiency while maintaining operational flexibility. Overall, these modifications align with Nissan’s goal to achieve profitability at a sales volume of just 3.5 million vehicles worldwide.
The restructuring extends beyond U.S. operations, as evidenced by the August 2024 decision to reduce production at the Kyushu plant in Japan by one-third due to weak U.S. demand. Besides production adjustments, Nissan has implemented extended holiday shutdowns and reduced production days to manage inventory levels effectively.
Key Factors That Will Determine Nissan’s Future
Several critical developments will shape the answer to whether is nissan going out of business in the coming years. Three pivotal factors stand at the forefront of determining the automaker’s future trajectory.
Honda partnership potential
A historic merger between Nissan and Honda could fundamentally alter the automotive landscape. Initially proposed in December 2023, the partnership aims to create the world’s third-largest auto group, with projected combined sales of 30 trillion yen (USD 191 billion). The merger, targeted for completion by 2026, would establish a joint holding company.
This strategic alliance primarily focuses on:
- Standardizing vehicle platforms across segments
- Integrating research and development functions
- Optimizing manufacturing facilities
- Streamlining purchasing operations
The combined entity would enhance development capabilities while reducing costs through the integration of overlapping functions. Indeed, both companies expect substantial improvements in capacity utilization, leading to decreased fixed costs.
Electric vehicle strategy
As questions persist about is nissan going out of business, the company’s electric vehicle roadmap presents a crucial turning point. Through its Ambition 2030 vision, Nissan plans to launch 27 new electrified models, including 19 EVs, by fiscal year 2030. The company projects its electrification mix to exceed 55% globally by 2030.
Presently, Nissan aims to reduce EV costs by 30%. The manufacturer has secured a strategic partnership with SK On for battery supply, starting around 2028, with capacity sufficient to power approximately 300,000 standard EVs.
Brand rebuilding efforts
The question “why is nissan going out of business” has prompted comprehensive brand revitalization initiatives. The company’s NGP2030 environmental program represents a cornerstone of these efforts, focusing on:
- Achieving carbon neutrality in operations by 2050
- Making electrification technologies top priorities
- Improving air quality and water management
- Adopting circular economy approaches
Through these initiatives, Nissan targets a sustainable global market share of 6%. The company has pledged to refresh 60% of its internal combustion engine vehicles, introducing 14 new models by FY 2026. Meanwhile, in Japan, plans include renewing 80% of models and ensuring 70% of the lineup consists of hybrid or fully electric vehicles.
The success of these strategic initiatives will determine if is nissan going out of business becomes a reality or if the company emerges stronger through its transformation. The combination of the Honda merger, aggressive EV strategy, and comprehensive brand rebuilding efforts represents Nissan’s most ambitious attempt to secure its future in the rapidly evolving automotive industry.
Expert Predictions for Nissan’s Survival

Financial analysts paint a concerning picture as they assess is nissan going out of business prospects. The Japanese automaker faces critical challenges that will determine its survival in both immediate and extended timeframes.
Short-term outlook
Fundamentally, Nissan’s immediate future hangs in balance. A senior company official revealed they have “12 or 14 months to survive”, highlighting the urgency of their situation. The automaker’s financial metrics underscore this precarious position:
- Operating profits plummeted by 90% in the first half of fiscal 2024
- Net income dropped by 94% during the same period
- Annual profit forecast slashed by 70%, from USD 3.25 billion to USD 975 million
Evidently, the question “is nissan going out of business 2024” stems from these alarming indicators. The company’s desperate search for a new anchor investor further emphasizes their critical situation. Primarily, Nissan needs both Japan and the United States markets to generate substantial cash flow for survival.
Long-term viability assessment
Credit rating agency Fitch has revised Nissan’s outlook to negative, projecting challenges until March 2027. The assessment raises concerns about why is nissan going out of business becoming a serious consideration. Key factors affecting long-term survival include:
The auto EBITDA margin forecast shows a concerning trend:
- FYE25: 2.6%
- FYE26: 4.4%
- Previous FYE24: 5.6%
Certainly, nissan is going out of business concerns have prompted various survival strategies. The company maintains strong liquidity levels and continues investing in new products and technologies. However, industry experts remain divided on the automaker’s future prospects.
Felipe Munoz, global automotive analyst at JATO Dynamics, characterizes recent measures as “desperate”. Nonetheless, Alan Haig, president of Haig Partners, offers a more optimistic view, suggesting Nissan’s strength, particularly with Infiniti, might be sufficient for survival if they secure a strategic partner.
The company’s competitive position in the value segment presents a potential advantage. Nissan offers six models below USD 30,000 in the U.S. market, distinguishing itself when average transaction prices approach USD 50,000. This positioning could prove crucial for long-term sustainability.
Obviously, the success of Nissan’s survival strategy depends on several critical factors:
- Stabilizing North American operations by 2026
- Managing potential U.S. tariff impacts on Mexican imports
- Executing the planned restructuring effectively
- Maintaining geographical and product diversification advantages
The question “is nissan going out of business” ultimately depends on the company’s ability to navigate these challenges while maintaining its position as part of the world’s fifth-largest automaker group. Their standalone operating profile, though modest compared to global competitors, still demonstrates potential for recovery through strategic partnerships and market positioning.
Is Nissan Going Out Of Business Fequently Asked Questions
Is Nissan going out of business?
Nissan is experiencing significant financial challenges, including an 85% drop in quarterly profits, production cuts across major models, and a decline in market share. The company has implemented aggressive cost-cutting measures and restructuring plans to address these issues.
What steps is Nissan taking to turn its business around?
Nissan is implementing a comprehensive turnaround strategy that includes cost-cutting measures, production capacity reduction, and streamlining operations. The company aims to save approximately 400 billion yen by the end of the current financial year and is focusing on consolidating production lines both domestically and internationally.
How is Nissan adapting to the electric vehicle market?
Nissan has unveiled its Ambition 2030 vision, which includes plans to launch 27 new electrified models, including 19 EVs, by fiscal year 2030. The company aims to reduce EV costs by 30% and has secured a strategic partnership with SK On for battery supply to power approximately 300,000 standard EVs starting around 2028.
What are industry experts saying about Nissan’s future?
Industry experts are divided on Nissan’s future prospects. Some analysts characterize recent measures as “desperate,” while others suggest that Nissan’s strength, particularly with its Infiniti brand, might be sufficient for survival if they secure a strategic partner. The company’s competitive position in the value segment is seen as a potential advantage for long-term sustainability.
Is there a potential merger in Nissan’s future?
A historic merger between Nissan and Honda has been proposed, which could create the world’s third-largest auto group. This strategic alliance would focus on standardizing vehicle platforms, integrating research and development functions, optimizing manufacturing facilities, and streamlining purchasing operations. The merger, if completed, could significantly impact Nissan’s future in the automotive industry.
Why is Nissan going out of business?
Nissan is not going out of business, but it has faced financial struggles due to declining sales, high operational costs, and market competition. The company is restructuring, cutting jobs, and focusing on electric vehicles to regain stability.