If you come across a Skyline, you may want to buy it. They may just become relics…
Nissan in hot water
Japanese automotive manufacturer Nissan is allegedly facing dire financial circumstances, threatening its existence.
The Renault Group-owned car company may have between 12 and 14 months to implement a turnaround strategy, according to the Financial Times.
This has also instilled a shadow of doubt in its South African operation.
Weak sales in North America and China have crippled the makers of the R34 Skyline GTR, according to its Boss Makoto Uchida, Reuters reported.
No hybrid EV’s a problem
Some of the questions managers within the company posed to Uchida was why they did not sfift into the Hybrid EV market.
Uchida announced that 9,000 employees, 20% of global production capacity and $2.6 billion of costs were on the chopping block.
Chinese competition has been one of the key factors in the automotive markets pivot away from Nissan.
The installation of Donald Trump as president of USA has not made matters easier. Trump imposed a 25% tariff on Mexico. Mexico is a low cost production hub for many car manufacturers selling in the US.
A pivot is in dire need
“What we have today at Nissan is a man-made disaster. While it’s true that there has been a tremendous amount of uncertainty and disruption in the industry itself. This is basically a case of a failure of management strategy,” a senior analyst at Tokai Tokyo Intelligence Laboratory said in a Reuters report.
“What Mr. Uchida has to do now is hand the baton over to a new management team.”
Nissan told Reuters it wouldn’t comment on internal meetings or on speculation about its recovery plan or Uchida’s future. It said it was premature to comment on tariffs, but was monitoring the situation.
“The CEO has acknowledged management responsibility for our current situation,” it said, adding Uchida was working to make Nissan leaner and more resilient while bolstering competitiveness.
