Since the dramatic downfall of “Cost Killer” chief executive Carlos Ghosn in 2018, Japan’s Nissan Motor Co. has labored with weak sales and an outdated model lineup.
A Nissan Leaf S Plus. Photographer: Michael Nagle/Bloomberg
By early February, negotiations were in a deadlock as the inherent power imbalance between the two legacy brands threatened to tank the deal.Honda has more than quadruple the market value of Nissan, and absorbing its rival would bring greater economies of scale. In November, the Yokohama-based automaker said it would cut 9,000 jobs from its workforce of more than 130,000, and slash production capacity by a fifth.Nissan’s sales have been falling in Japan and China, and also in the US, its biggest and most important market. The company’s product lineup is looking outdated, leading to inventory backlogs that are forcing it to cut prices.
“Having no hybrids is one thing, but the company’s response to a changing situation was very, very slow,” said James Hong, an analyst at Macquarie Securities Korea Ltd. Ghosn accelerated the rollout of new models to boost Nissan’s global market share. He also kept a tight lid on spending, so these cars ended up being less innovative than those of rivals, according to analysts who follow the company.
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