Nissan’s post-2010 unraveling wasn’t the result of a single event or decision—it was a slow, complex decline caused by a mix of leadership breakdown, strategic misfires, and an inability to adapt to evolving market dynamics. This chapter unpacks the key underlying causes behind the automaker’s decline over the past decade and a half.
The Danger of a One-Man Leadership Model
Carlos Ghosn is often credited with saving Nissan in the early 2000s—and rightfully so. His aggressive cost-cutting, alliance with Renault, and restructuring efforts turned a near-bankrupt company into a global player. But the company became too dependent on him.
After the initial turnaround, Nissan’s leadership model didn’t evolve. Ghosn retained near-absolute control over key decisions, from product strategy to executive appointments. This created a power vacuum beneath him. There was little room for dissent or alternative thinking, which made the company brittle once he was removed from the picture.
When Ghosn was arrested in 2018 for alleged financial misconduct, it wasn’t just a PR disaster—it triggered a full-blown governance crisis. Boardroom infighting followed, trust among stakeholders eroded, and investors began to question the company’s long-term direction. The sudden vacuum left behind exposed a deeper issue: Nissan lacked a strong bench of leaders who could steer the company through transition.
Stagnant Product Strategy and Eroding Brand Value
While competitors like Toyota, Hyundai, and Ford continuously refreshed their lineups and innovated in hot segments like crossovers, SUVs, and EVs, Nissan lagged behind. For years, key models like the Altima, Pathfinder, and Frontier were left to age with only minimal updates. Meanwhile, rivals released fresher, tech-forward alternatives.
The problems didn’t stop at design. Nissan also suffered from a decline in build quality. The company became entangled in one of the largest global recalls in history due to faulty Takata airbags. On top of that, their CVT (continuously variable transmission) issues became widely known, especially in models like the Sentra and Rogue, damaging consumer trust.
The over-reliance on fleet sales (especially in North America) further diluted the brand image. While these sales propped up short-term volumes, they hurt resale values and made Nissan appear more like a rental car brand than a desirable choice for everyday buyers.
Financial Slide and Operational Inefficiencies
From 2017 onward, Nissan’s financial performance steadily declined. Between 2017 and 2020, global sales fell from 5.77 million units to just 4.03 million. By fiscal 2019, the company posted its first annual operating loss in over a decade—¥40.5 billion (approx. $370 million USD).
The causes ran deep:
- Excess manufacturing capacity in key regions (especially North America).
- Underperforming plants with low utilization rates.
- Overly aggressive global expansion under Ghosn that outpaced demand.
- High fixed costs paired with flatlining revenue.
The "Nissan NEXT" plan, announced in 2020, aimed to slash fixed costs by ¥300 billion, streamline the product lineup by 20%, and prioritize profitability over volume. While the plan had the right intentions, many saw it as too little, too late.
Renault–Nissan Alliance Dysfunction
What was once a visionary alliance—bringing together French capital and Japanese engineering—became a source of tension and instability. The imbalance in shareholding (Renault owned 43% of Nissan, while Nissan held only 15% of Renault, with no voting rights) led to persistent power struggles.
After Ghosn’s departure, Renault pushed for a merger, while Nissan resisted fiercely, fearing loss of autonomy. Collaboration slowed. Joint projects were shelved or delayed. EV and autonomous driving R&D—which were supposed to be shared platforms—got bogged down in disagreements over control and IP rights.
By the time the two companies restructured the alliance in early 2023 (finally agreeing to rebalance stakes to 15% each), years of friction had already cost both companies precious time in an increasingly competitive market.
Market Misalignment: Especially in the U.S.
In its biggest market—North America—Nissan’s strategy faltered badly. While SUV and pickup demand surged, Nissan failed to keep up. The Titan pickup, for instance, never seriously challenged the Ford F-150 or Toyota Tundra and was eventually discontinued in 2024 due to poor sales.
On top of that, Nissan’s EV leadership (it was among the first with the Leaf) faded. While the Leaf had early success, Nissan failed to capitalize on its early lead. It didn’t develop a competitive EV platform fast enough. The Ariya, while promising, arrived years after Tesla, Hyundai, and Ford had already dominated the space.
Key Lessons and Takeaways
Nissan’s fall was not the result of bad luck or external shocks alone—it was rooted in fundamental internal failures:
- Leadership overconcentration is dangerous, especially when it stifles internal talent and succession planning.
- Brand damage is hard to reverse. Years of neglect in product design, quality, and customer trust take years to rebuild.
- Strategic alignment in alliances is critical. Mergers and partnerships can unlock scale, but they require mutual respect and clear governance.
- Market responsiveness matters. Automakers can no longer afford to ignore trends in electrification, connectivity, and customer experience.