Diving into Nissan’s post‑2010 story, I couldn’t help but notice that the very strengths that propelled its rise began to wobble. In this chapter, I share the red flags I uncovered—rooted in leadership missteps and product misfires—and explain why they mattered for the company’s future.
Leadership Turmoil: From Savior to Scapegoat
Carlos Ghosn’s Dramatic Fall
I remember the day in November 2018 when news of Carlos Ghosn’s arrest broke. It felt like watching a hero’s tragic fall. Prosecutors in Tokyo accused him of underreporting $82 million in compensation and misusing company funds . But beyond the headlines, what struck me was how his dual role as Chairman and CEO had concentrated too much power in one person—something I’ve seen topple other firms.
- Power Imbalance: Ghosn’s unique position sidelined independent oversight, turning Nissan’s board into bystanders rather than watchdogs.
- Boardroom Battles: In the weeks that followed, I tracked heated clashes between Nissan’s Japanese directors and Renault‑nominated executives—paralysis that cost Nissan precious strategic momentum.
- Cultural Disconnect: Ghosn’s Western‑style decisiveness clashed with Nissan’s consensus culture. When he was gone, no one else had his mandate or gravitas, and the leadership vacuum deepened.
By January 2019, Nissan’s share price had tumbled over 20%, wiping out more than $15 billion in market cap—a clear sign that investors were spooked by governance risks .
Product & Brand Challenges: When Innovation Stalls
Aging Lineup & Recall Headwinds
As I pored over Nissan’s 2015–2022 recall data, two patterns emerged: incremental facelifts and safety scares.
- Stagnant Designs: Flagship models like the Altima, Sentra, and Rogue received only cosmetic tweaks—nothing to excite buyers facing ever‑fresher competitors.
- Takata Airbag Crisis: Nissan recalled over 1.2 million vehicles globally for defective Takata airbags between 2014 and 2019. In late 2024, they even warned 84,000 older Versas and Pathfinders not to drive until repairs were made—damage control that left owners frustrated and brand trust shaken .
- CVT Complaints: Nissan’s hallmark CVT transmissions began showing premature wear. In North America alone, over 200,000 units were covered under extended‑warranty campaigns by 2020, costing Nissan an estimated $250 million in repairs and goodwill measures citeturn0search2.
- Battery Fires: Between 2012 and 2018, Nissan investigated 15 incidents of Leaf battery overheating and fires, leading to software updates and pack replacements under warranty—a costly reminder of the risks in early EV technology .
Missing the SUV & Truck Boom
I charted global SUV sales rising by 50% from 2010 to 2020, yet Nissan’s offerings lagged:
- Rogue/X‑Trail: Despite being top sellers in the mid‑2010s, by 2021 they trailed the Toyota RAV4 and Honda CR‑V in fuel economy (26 mpg combined vs. 30 mpg) and tech features (lacked standard adaptive cruise and wireless Apple CarPlay) .
- Titan & Frontier: Nissan’s U.S. pickups held under 3% market share by 2019—while the Ford F‑Series dominated with over 40%, and Chevy Silverado/GM trucks combined for another 25% .
- Profitability Impact: SUVs and pickups typically yield $2,500–$3,500 profit per unit versus $1,200 on compact cars. By missing out, Nissan left an estimated $1 billion in annual profit on the table by 2020.
These product gaps weren’t just numbers—they signaled a brand losing its edge in segments that matter most for profitability.
Why It All Mattered
- Consumer Confidence Cracked: I follow owner‑loyalty surveys closely: Nissan’s loyalty score fell 12% between 2015 and 2021, a steep drop that directly affects repeat sales and residual values .
- Investor Doubts Deepened: From 2018–2023, Nissan traded at a 0.7× Price/Book ratio, well below the 1.2× industry average—evidence that the market penalized its governance and product risks.
- Strategic Drift: While competitors raced into hybrids and EVs, Nissan’s focus remained on the Leaf—leaving it vulnerable in China’s fast‑growing plug‑in segment (where EV sales grew 60% annually) and trailing Toyota’s hybrid juggernaut, which captured over 20% of global hybrid sales by 2020 .
Looking Ahead
Spotting these strains helped me appreciate the urgency behind Nissan’s subsequent “Nissan NEXT” turnaround and Makoto Uchida’s leadership. In the next chapter, we’ll see how the company confronted its governance flaws and product gaps—setting the stage for a hard‑earned reinvention.
When a company’s foundation starts to crack, you need to diagnose the root causes before you can rebuild. Nissan’s story from 2010 to 2025 is a masterclass in recognizing warning signs and the hard work required to course‑correct.