Between 2010 and 2025, Nissan faced one of the most challenging periods in its history. Once lauded for rapid growth and innovation, by the mid‑2020s the company was grappling with plunging sales volumes, collapsing profit margins, costly restructuring, and prolonged strategic gridlock within its Renault–Nissan alliance. This chapter explores how these interlinked pressures drove Nissan’s financial and operational deterioration—and why overcoming them will be critical for any future revival.
Sales & Volume Retreat
In fiscal year (FY) 2010, Nissan recorded a record high of 4,185,000 global unit sales—a 19.1 % increase year‑over‑year as the company rebounded from the global financial crisis. By contrast, in FY 2023 those sales had receded to just 3,440,000 units—a drop of nearly 18 % from the 2010 peak. This sustained volume decline reflects intensifying competition, slower adoption of key models, and market share erosion in critical regions such as North America and China.
Profit Erosion & Cost‑Cutting
Revenue Shrinkage & Losses. In FY 2019, Nissan’s consolidated net revenue fell to ¥9.8789 trillion, and the company swung to an operating loss of ¥40.5 billion, driven by ¥603 billion of restructuring and impairment charges. Net losses reached ¥671.2 billion, with free cash flow for the automotive business turning negative ¥641.0 billion.
Workforce Reductions. In response to these headwinds, Nissan announced plans in late 2024 to cut 9,000 jobs and trim 20 % of its global manufacturing capacity—part of a broader ¥400 billion (approx. $2.6 billion) cost‑reduction program aimed at restoring profitability. Such deep‐seated cuts underscore how far Nissan’s financial health had deteriorated.
Alliance Strains & Governance Gridlock
The Renault–Nissan alliance, once the linchpin of Nissan’s global strategy, became a source of persistent tension:
- Imbalanced Cross‑Shareholding. Renault held a 43.4 % voting stake in Nissan, whereas Nissan’s 15 % stake in Renault carried no voting rights. This asymmetry bred mistrust and hampered joint decision‑making.
- Rebalancing Efforts. Only in November 2023 did Renault agree to transfer 28.4 % of its Nissan shares into a trust—reducing its active stake to 15 % and putting both companies on equal footing. However, this rebalancing did little to accelerate coordinated investments or quell lingering governance disputes.
EV Transition Turned Tumultuous
While many rivals pressed ahead with rapid electrification, Nissan’s EV rollout was repeatedly delayed:
- Its Canton, Mississippi plant—slated to build multiple new EV models beginning in 2025—saw those plans pushed back to 2028, as Nissan cited the need to “enhance product competitiveness” and reprioritize core models.
- These postponements not only undermined Nissan’s reputation in the fast‑growing U.S. EV market but also increased per‑unit costs and delayed the realization of scale economies.
From a high‑flying auto maker in 2010 to near‑breakeven operations in the early 2020s, Nissan’s financial and operational decline was fueled by sliding volumes, margin compression, alliance friction, and stunted electrification plans. Any credible turnaround will hinge on restoring competitive product pipelines, streamlining costs further, and forging stable governance structures—inside Nissan and across its alliance—to navigate the rapidly evolving global automotive landscape.