Core Viewpoint - A merger with Honda may be Nissan's best or only chance for survival amid significant challenges in key markets and a drastic decline in profits [1] Financial Performance - Nissan's operating profits dropped by 90% and net income fell by 94% in the first half of fiscal year 2024 compared to the same period a year earlier [1] - A report indicated that Nissan has "12 or 14 months to survive," although the company described these comments as speculation [2] Strategic Actions - The company is implementing significant changes, including executive shuffles, cutting 9,000 jobs, and reducing production by approximately 20% [3] - CEO Makoto Uchida is reducing his monthly compensation by about 50%, with other executive committee members also expected to take pay cuts [3] Market Position and Strategy - Despite challenges, Nissan has strengths, such as six models priced below 50,000 [4] - A potential strategy involves targeting the value niche market, focusing on affordable and reliable vehicles for first-time buyers and new families [5]
How Nissan's profits dropped 90% in one year