Nissan cuts jobs and production in bid to avoid bankruptcy

In Japan, Nissan is facing its most critical financial crisis since Carlos Ghosn took over in 1999. The company has announced a plan to cut 9,000 jobs worldwide in response to its dwindling market position and the need to restructure its operations. Along with job cuts, Nissan plans to reduce its production capacity by 25%, marking a significant overhaul of its business strategy. This decision comes after reports indicated that without a viable financial turnaround, bankruptcy could be imminent within the next 12 to 14 months. The challenges facing Nissan are largely due to increased competition from cheaper electric vehicles being produced in China, which has encroached on the market share of Japanese automakers. Nissan's own electric vehicle offerings have been limited, with only two models currently available in international markets. Meanwhile, its innovative e-Power hybrid technology remains unavailable in the critical U.S. market, further complicating its ability to remain competitive. Despite these challenges, there are glimmers of hope for Nissan in Europe, where models like the Nissan Qashqai and Nissan Juke have maintained strong popularity, holding third and fourth positions in sales as of October. The Qashqai was even named the most popular vehicle in the UK in 2022, demonstrating Nissan's capability to produce attractive and successful models. However, critics within the company, like Sanshiro Fukao from the Itochu Research Institute, have highlighted the emotional toll this situation takes on employees, expressing deep concern for their morale and the company's future prospects. Looking ahead, Nissan's recent partnership with Honda for electric vehicle development promotes hope for recovery. With Honda potentially investing and helping with product development, Nissan may be able to navigate through these financial difficulties. Nevertheless, for a turnaround to be successful, the company must revamp its product lineup to enthrall consumers as effectively as its successful models have done recently.