Autoextremist: Nissan's slow roll to oblivion

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Thread: Autoextremist: Nissan's slow roll to oblivion

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    Autoextremist: Nissan's slow roll to oblivion

    One of my brothers-in-law is a big Nissan fan. I think that newest rant from PDL will not cheer him up. www.autoextremist.com
    NISSAN'S SLOW ROLL TO OBLIVION.
    DateTUESDAY, JULY 28, 2020 AT 03:12PM
    By Peter M. DeLorenzo

    Detroit. Look at the photo below carefully. Study it. Let it sink in. It’s the Nissan Motor Co., Ltd. corporate brain trust in Yokohama on Tuesday declaring an annual operating loss for the second straight year. It’s also a picture of abject mediocrity in its purest form.

    How bad is it for Nissan? The Japanese automaker is forecasting an operating loss of 470 billion yen ($4.5 billion) as reported by Reuters, which, according to Nissan’s own data, makes it the company’s biggest loss since as far back as 1977. It also happens to be much larger than consensus estimates of a 262.8 billion yen loss from 20 analysts polled by Refinitiv, as reported by Reuters.

    That’s not all. Nissan predicts revenue will plummet to 7.8 trillion yen ($74.1 billion) and that its global vehicle sales will fall 16 percent. All of this comes after a comprehensive restructuring plan was unveiled in May, which slashed models and production capacity. This, of course, was after the removal and subsequent arrest of former CEO Carlos Ghosn, which went down in 2018.

    I have been writing about Nissan’s serial incompetence for years. The company’s three-steps forward, five-back model cadence was a recurring nightmare. Too often its products were mediocre, and because of that they languished in this market unless scorched-earth incentives were used to move the metal. And Ghosn’s aggressive approach to expansion in markets that couldn’t care less about Nissan made things even worse (his infatuation with the Renault partnership and the failing Mitsubishi linkup didn’t help things, either). This formula of mediocre products + razor-thin profit margins = a brand that was going nowhere, everywhere. And this burgeoning quagmire was compounded by the fact that the company’s marketing strategy became so dependent on those incentives in this market in particular that Nissan couldn’t extricate itself from the cycle.

    Nissan allegedly is the No. 2 Japanese automaker behind Toyota, but it doesn’t even remotely deserve that moniker. The company was long a ship of fools before Ghosn arrived, it was heightened during Ghosn’s tenure, and after Ghosn was forcibly removed the ship began to list badly. Everything company operatives said, or touched, seemed to go wrong. Promises of “new beginnings” were made about as frequently as the financial quarters went by. New product offensives fizzled with brutal regularity, so there was nothing left to do except pile on even more incentives, because that strategy kept the plants open and kept Ghosn off of the U.S. executives’ backs.

    But now that Nissan’s Japanese operatives got what they wanted, which was Ghosn’s ostracization and removal, it has become painfully apparent that they really don’t have a clue as to what to do. Or as we like to say in The Biz: They. Got. Nothin’. So, in time-honored industry fashion, Nissan executives have resorted to throwing things up against the wall to see what sticks – and nothing ever does – which is just like old times.

    Time, money and excuses are running out for Nissan. The brand itself has become crusty and undesirable, and its products are old and getting swallowed up by much more competitive entries, especially from the Korean automakers. In short Nissan is an also-ran brand and a classic reminder that there are no guarantees in this business. Just because a brand has been around a long time doesn’t mean a thing. The history of this business is littered with one-hit wonders, ego-driven glorious failures, sure things that somehow went wrong, and sometimes companies that had their time in the sun and just faded away.

    Nissan has reached that point. It had – at times – what can be considered a good run. Its glory days were memorable, especially in this market when it was still called Datsun, but those moments were fleeting and seem like a long time ago. That’s because it was. Since then the company has been mired in mediocrity and held captive by mercenary prophets spouting false promises, and internal bickering, which sapped the life out of the company. In short, Nissan has been on a slow roll to oblivion, even though no one there seems to understand or believe it.

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    Re: Autoextremist: Nissan's slow roll to oblivion

    How can one be a Nissan fan? Not sure I get how that works. That's like being a fan of LG Appliances.

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    Re: Autoextremist: Nissan's slow roll to oblivion

    Quote Originally Posted by BORG View Post
    How can one be a Nissan fan? Not sure I get how that works. That's like being a fan of LG Appliances.
    Hey...I have a LG TV!?!?! Its okay-ish as long as you don't have a problem w/ the Noise control algorithm creating ghost images on the screen. TBH that purchase was done out of pure laziness because I had a Logitech Harmony that was setup to work through my old LG 1080p 3D TV that met its maker from a stray Hot Wheel.

    All BS aside, I used to be a Nissan fan going back to when I guess stuff first started going south...they still make some decent stuff today, the Q60 Coupe, the new Altima is okay in the upper trims, the new Sentra doesn't appear to look bad, but they do have some aging products...the 370Z, GTR, and Armada come to mind...those need revamps ASAP...that 400Z needs to come out like yesterday.
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    Re: Autoextremist: Nissan's slow roll to oblivion

    IMHO Before Renault NISSAN made some very nice products AND TRIED to interesting take the X-Terra the GS-R Sentra
    not 100% home runs but "A" for effort NOW it is low priced low "spirit" will work appliances with little redeeming value
    I would rather see Mitsubishi stay over Nissan

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    Re: Autoextremist: Nissan's slow roll to oblivion

    Don't you guys get the GTR? Its not a bad unit.

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    Re: Autoextremist: Nissan's slow roll to oblivion

    My guess is the Japanese government will not let Nissan go out of business. I'd be surprised if they let the Chinese buy the company (I can't see anyone else being interested), so that leaves a government bailout if it comes to that point.

    However, let's not forget that Nissan's year end is March 31, so part of their loss is Covid related, though I'd think the impacts at that point weren't huge.

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    Re: Autoextremist: Nissan's slow roll to oblivion

    Things seem pretty bleak, but I'm thinking they will pull a rabbit out of the hat one way or another like BlackGTP says a gov't bailout. Hopefully they'll learn something and turn this faltering ship around.

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    Re: Autoextremist: Nissan's slow roll to oblivion

    Quote Originally Posted by BORG View Post
    How can one be a Nissan fan? Not sure I get how that works. That's like being a fan of LG Appliances.
    The GT-R is dying on the vine. The only product Nissan has ever done in the last 2 decades worthy of consideration. Oh Yeah, there was a time Maximas with its VQ V6 was an excellent product. Those days are long gone

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    Re: Autoextremist: Nissan's slow roll to oblivion

    Nissan's problem is the opposite of GM's....they let their flagship products wither while keeping their mainstream models fresh. Products like the Z, GTR, Armada create excitement and foot traffic which kind of lead to lower end sales on products like the Mallfinder, Altima, Maxima, etc...somewhere between what GM is doing...focusing on your high end products and ignoring everything else and what Nissan did, is a happy medium...While developing an all new GTR may be completely out of question given their financial straits...there's no reason why development couldn't go to updating the Z car, or doing an updated Armada that isn't based on a 13 year old design.

    The 370Z at its peak sold 10k units in a year...its now down to 2k, because everyone who wanted a Z has a Z...a current generation Z at that. 11 years is too long for a niche product cycle.
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    Re: Autoextremist: Nissan's slow roll to oblivion

    Quote Originally Posted by mbukukanyau View Post
    The GT-R is dying on the vine. The only product Nissan has ever done in the last 2 decades worthy of consideration. Oh Yeah, there was a time Maximas with its VQ V6 was an excellent product. Those days are long gone
    Did the GT-R ever sell well outside of Japan? I respect it's capabilities, but I'm no fan of the styling.

    Edit: North America sales volume: https://www.goodcarbadcar.net/nissan...sales-figures/
    Europe: https://www.goodcarbadcar.net/nissan...sales-figures/

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    Re: Autoextremist: Nissan's slow roll to oblivion

    They made some good stuff in the 80's... the "square" Maxima and the Z were just a couple.
    I owned a '81 Datsun 810 Maxima and it was a runner... something you couldn't say about too much in those days.
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