Core Viewpoint - Nissan is struggling to turn around its business as sales and profits have significantly declined, compounded by proposed tariffs from the incoming Trump administration that could further hinder recovery efforts [1][3][7]. Group 1: Sales and Production - Nissan's global sales in October decreased by nearly 2.7% compared to the previous year, with double-digit declines in both China and Europe, although there was a slight increase in the US for the first time in three months [6]. - Vehicle production has dropped by 7.1% globally in the first 10 months of 2024 compared to the previous year, with the exception of Mexico, where production rose nearly 10% [3][7]. - Nearly one in four Nissan vehicles produced globally last month were manufactured in Mexico, indicating a high exposure to potential tariffs [3][5]. Group 2: Financial Performance - Nissan's profit for the quarter ending in September fell to approximately 1.4 billion during the same period last year [7]. - The company has announced plans to cut 9,000 jobs and reduce 20% of its manufacturing capacity as part of its turnaround strategy [7]. Group 3: Market Challenges - The proposed tariffs by the incoming US president could impose a 25% import tax on goods from Mexico and potentially 200% on vehicles, which would severely impact Nissan due to its production facilities in Mexico [4][5]. - Nissan is facing increased competition from Chinese automakers, which are gaining market share in China with affordable electric vehicles [8][10]. - The company is reportedly seeking additional investors after European partner Renault sold some of its holdings, with a senior official indicating that Nissan has "12 or 14 months to survive" [8].
Nissan is having a terrible time, and Trump might be about to make it a whole lot worse