With negotiations stalled, this article explores Nissan's struggles with declining sales and an outdated lineup, highlighting how a potential merger with Honda could provide a lifeline. It analyzes the challenges and potential benefits of such a tie-up, considering Honda's superior market value and expertise in EV technology. The article also examines Nissan's past missteps in the EV market and the impact of Carlos Ghosn's downfall.
As negotiations on a deal remain deadlocked, here's a look at Nissan's problems and what Honda could bring to the table.
A visitor looks at Nissan Motor's electric vehicle model Leaf at its showroom in Yokohama, Japan, Nov 3, 2023. emerged offering EVs that are better equipped, and the US market has skewed toward hybrid vehicles that combine electric motors with combustion engines. Nissan concentrated the timing of new model releases and waited longer to update them. This left dealerships to cut prices to draw customers who would otherwise choose a more modern car from a rival brand.
The seeds may have been sown during Nissan’s last crisis a quarter-century ago, when France’s Renault stepped in to take a controlling stake and dispatched “Le Cost Killer” Ghosn to engineer a turnaround. Ghosn cut purchasing costs, shut factories and eliminated 21,000 jobs. Nissan failed to squeeze all the potential benefits from the alliance with Renault by fully collaborating on product development. The partnership collapsed in 2018, when Ghosn was detained in Japan for suspected financial crimes. The shortcomings of Nissan’s model lineup have remained a problem for the company ever since.The Leaf’s driving range is relatively limited compared with newer models. It uses a charging connector called CHAdeMO developed jointly with other Japanese automakers.
NISSAN HONDA AUTOMOTIVE INDUSTRY MERGER ELECTRIC VEHICLES EV MARKET CHINA JAPAN
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