2025 could be the end for Nissan Motors
Nissan’s survival is once again in doubt.
Its profits have been declining year after year, its vehicle line-up is stagnant, its reliability is poor compared to its Japanese counterparts, and mismanagement is a significant issue. In November 2024, unnamed Nissan executives went on record saying the manufacturer has only “12 to 14 months to survive,” as reported by the Financial Times. Paired with Nissan reporting a net loss of $4.5 billion in 2024, the nails had already begun hammering down on the coffin.
This isn’t a first for the company, as it faced bankruptcy in the 1990s.
Those familiar with the story of Carlos Ghosn, former CEO of Nissan, know he pulled Nissan back from the brink and managed to turn it into a profitable business. However, he was also linked to its recent decline, as he was ousted by Nissan and smuggled himself out of Japan in 2019 while under house arrest. (See Car Time’s Sept. 2023 column for more on that story.)
In late 2024, rumors were swirling about Nissan possibly being bought out by a foreign company. Miraculously, at the same time, Honda publicly announced merger talks with Nissan.
From a business perspective, it made no sense for Honda to partner and consider Nissan as an equal, when Honda would essentially be taking on a dying company that needed massive restructuring before a profit could be made. In addition, Nissan still had ties with the French manufacturer Renault, as well as Mitsubishi.
Rumor had it, however, that these discussions were triggered by the Japanese government, which wanted to keep Nissan a Japanese-owned manufacturer – hence the public announcement that Honda was interested in Nissan.
For months, both manufacturers went back and forth on a deal, but in the end, the merger did not happen. One reason was, as heads of the Honda dived into Nissan’s troubles, they discovered how deep of a hole Nissan was in. They demanded immediate restructuring and wanted Nissan to buy out Renault’s shares to become independent again.
Dragging his feet to put together a plan under Nissan’s then-CEO Makoto Uchida, Honda’s CEO Toshihiro Mibe proposed that Nissan would not be a partner, but rather a Honda subsidiary, which, in turn, would allow Honda to have complete control of the restructuring of Nissan.
Offended by the proposal, Nissan balked, and in February 2025, Nissan and Honda officially ended merger talks.
This fallout had major repercussions for Uchida, since he was booted out by Nissan Motors and replaced by Chief Planning Officer Ivan Espinosa. With a new CEO, there were hopes of resurrecting a partnership with Honda, yet, as of May 2025, there have been no
public announcements.
Another blow to Nissan is the threat of United States tariffs. All manufacturers are dealing with this, but as Nissan struggles to survive, it is hit even harder as sales before the tariffs weren’t great.
Which leaves Nissan in limbo. Again.
