According to Drive, Nissan’s recent financial turmoil has taken a dramatic turn with the resignation of its Chief Financial Officer (CFO), Stephen Ma. This move comes amid revelations that the Japanese car manufacturer is struggling to stay afloat due to fierce competition from cheap Chinese electric vehicles (EVs), says The Daily Mail.
The company has been hit hard by a sales slump in its two biggest markets, China and the United States. In response, Nissan has embarked on a massive cost-cutting program, including axing 9,000 jobs and reducing its global manufacturing capacity by 20%.
Despite these efforts, Nissan’s CEO, Makoto Uchida, has admitted that the company failed to foresee the popularity of hybrid and plug-in hybrid vehicles. This oversight, coupled with the influx of affordable Chinese EVs, has eroded Nissan’s market share and led to a significant financial downturn.
The Daily Mail says that Chinese brands like BYD, Chery, Geely, and SAIC Motor have been enjoying a sales boom, with BYD recently surpassing Tesla in quarterly revenue. This has put additional pressure on Nissan, which now risks running up its largest-ever debt by 2026.
Nissan’s recovery from its current financial crisis is uncertain, especially with the recent resignation of CFO Stephen Ma. The company is facing intense competition from affordable Chinese electric vehicles, significant sales declines in key markets, and a massive cost-cutting program.
While Nissan’s CEO, Makoto Uchida, is implementing drastic measures to stabilize the company, including job cuts and production reductions, the success of these efforts remains to be seen. Analysts suggest that Nissan has about 12 to 14 months to turn things around.
Do you think Nissan will be able to recover from this crisis?
