Nissan is rolling out big cuts but turning around sales will prove harder
With a lack of fresh models, new tariffs in its biggest market, and sharp competition from local and Chinese rivals, Nissan will be hard-pressed to shore up sales, which have plunged 42% since the 2017 business year.
Espinosa unveiled plans on Tuesday to cut 11,000 more jobs and shut seven plants and flagged that sales volume was expected to drop 3% in the current fiscal year, as performance in its key markets continues to come under pressure.
It expected sales in China to plunge 18%, while sales in North America and Japan are projected to stay nearly flat.
'They don't have a hybrid line-up. Their BEVs are not particularly successful,' said Julie Boote, an analyst at research firm Pelham Smithers Associates, referring to battery-powered electric vehicles and Nissan's offerings in the US.
'They will have to work on new model launches, but that takes time, and there's no guarantee that they will be more successful than before.'
Espinosa has promised to dramatically shorten vehicle development times and centre its strategy in the US, its most important market, around crossovers and sport utility vehicles.
'We understand that a sustainable recovery cannot rely solely on cost reductions. It must also be supported by strong product offerings,' he said.
As part of the strategy, Nissan will start offering a plug-in hybrid version of the Rogue SUV, its top-selling US vehicle, in North America this fiscal year by jointly developing it with its partner Mitsubishi Motors.
Another hybrid version of the vehicle will be launched in the next fiscal year and will be equipped with Nissan's e-Power hybrid technology.
Boote said she was not convinced of the strategy's success, cautioning plug-in hybrids do not generate the same level of demand as pure hybrid models.
'They will need to introduce attractive products to achieve this goal,' said Masahiro Akita, a senior analyst at Bernstein, referring to expanding its top line growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
38 minutes ago
- The Citizen
VIDEO: MG Cyberster reignites iconic brand's wow factor of old
All-electric two-door roadster brings supercar performance to the table at a fraction of the price. The adage that 'timing is everything' could not be more applicable to MG's recent return to South Africa. If the Chinese-owned iconic British marque's local re-entry was any sooner, it would have struggled to stand out with only SUVs to offer. This space is so saturated with models from the Far East that all of them are starting to look like copy-and-paste jobs from an SUV design app. But the 101-year-old carmaker had an ace up its sleeve in the form of the MG Cyberster, the world's first all-electric, two-seater, soft-top sports car. The R1.4-million niche ride is never going to be a volume seller stimulating the brand's cash flow. That is what its ZS and HS SUVs are there for. What the Cyberster does bring to the table is the kind of wow factor that MG cars of old were renowned for long before its ill-fated second local stint from 2011 to 2016. MG Cyberster a site to behold The Citizen Motoring can write books about the attention much more expensive exotic cars, we occasionally cruise around in, gets. Yet the admiration for the MG Cyberster clad in Flare Red paintwork we spent a week in was off the charts. Few things can match the sight of a car with scissors doors. Picture: Jaco van der Merwe Whether the car was actually penned at holding company SAIC's Active Design in London, an important reference to the brand's proud British heritage, or in China where it is built, the designers did a great job. In paying homage to the famous MGB Roadster from the 1960s, the Cyberster's electric-operated soft top, Union Jack-inspired taillights, sleek lines and stunning 20-inch machine-faceted alloys with red callipers set the scene for the ultimate party trick; electric scissor doors with frameless windows. Before the MG Cyberster, the rare sight of car doors lifting up was only associated with supercars like the Lamborghini Aventador and McLaren Arturo. And then only valets at polo clubs got to see them up close and personal. That is why the Cyberster drew the kind of crowds at did even at the local Spar. Onlookers had a tough time keeping their jaws up seeing the doors being opening and closing with a choice of three switches in and outside the car, as well as from the remote key. ALSO READ: PODCAST: MG banks on heritage to boost South Africa return Gaming-type cockpit The interior does an excellent job of not being outdone by the smashing exterior detail. Only offered along with the red exterior, our tester's interior was finished in red and black. This configuration comprises black leather, piano black and brushed chrome finishes along with red suede inlays on the sports seats, doors and centre console and a red leather steering wheel. The tri-cluster screen creates racing sim-type vibes. Picture: Jaco van der Merwe The cockpit feels like a racing simulator with the heated steering wheel set in front of a tri-cluster surround screen. The latter features a 7-inch infotainment system, 10.25-inch digital cluster and 7-inch driving information screen. Climate is controlled via a digital screen on the centre console which features alongside an aircraft-like gear selector. The infotainment system comes standard with Premium Bose sound played over eight speakers and Apple Carplay and Android Auto. One little oddity was that these do not operate wirelessly, while there is also no wireless phone charger. ALSO READ: Prices revealed as MG officially relaunches in South Africa Let's go racing You get carried away so easily by all the Cyberster's prettiness that you almost forget this is a sports car. And traditionally that means there are some serious horses underneath the bonnet. Or watts in this case. The Cyberster's 77kWh lithium-ion battery drives two electric motors producing a total of 375kW of power and 725Nm of torque. And even though the car weighs a tad under two tons, almost what a double cab bakkie weighs nowadays, it still managed to dart from 0 to 100km/h in a mere 3.57 seconds during Road Test Editor Mark Jones' test. That is the exact number Mark clocked in the Porsche 911 GT3 RS a few years ago. The MG Cyberster only needed another 11.06 seconds to reach 200km/h before the limiter kicks in at 208km/h. But enthusiastic driving with the Sport or Super Sport diving modes activated does take its toll on the battery. The claimed range of around 400km can come down very quickly if you have too much fun. The good news is only took half an hour to go from 30 to 80% at a 120kW DC charger. Why it makes sense Double wishbone suspension at the front and five-link rear suspension creates of solid ride that is not overly firm, albeit you do tend to feel the car's weight on uneven roads. The taillights resemble the Union Jack. Picture: Jaco van der Merwe There are four regenerative braking modes that allows effortless one-pedal driving. Augmented soundtracks is also offered to try and fool your brain into believing it comes from the motors. The MG Cyberster is so easy to drive fast that purists will probably scoff at it for lacking a soul. Or an engine and high-revving exhaust notes. They'd be right, it can never stir your soul like the said 911 GT3 does. But this car is not about appeasing old school petrolheads. For younger generations whose world is sculpted by what they see on their devices, the Cyberster is as aspirational as the MG roadsters of old were to their grandparents. And for recreating that, at a fraction of the price of a supercar, MG can take a bow. MG Cyberster test data
The Citizen
9 hours ago
- The Citizen
PODCAST: Tata needs to hit the ground running on SA return
Indian carmaker can't afford for buying public to dwell on the past in terms of the Indica, Indigo and Telcoline. Indian carmaker Tata has announced that it is re-entering the South African passenger car market eight years after its exit. The manufacturer, who still sells trucks and busses locally, announces its plans and initial passenger model line-up later this month. Tata Motors Limited is one of the biggest manufacturers in India which sold the Indica hatchback, Indigo sedan and Telcoline bakkie during its first stint in Mzansi. Tata makes a Pitstop In this week's episode of The Citizen Motoring's Pitstop podcast, we discuss Tata's return. The carmaker needs a proper return strategy to make sure it does not get lost in a landscape that differs vastly from the one it left behind. Since its exit over a dozen Chinese brands have started to operate locally and have started to hurt almost all the so-called heritage manufacturers in terms of sales. As the Tata Indica and Indigo were not exactly the world's best cars, the Indian carmaker will not only need to win buyers over with its new products, but also convinced them that they won't be as bad as their previous ones were. ALSO READ: On the comeback: Tata announces return to South Africa Chery a shining example It will be tough task, but not impossible. Chinese brand Chery managed to not only wipe the slate from its ill-fated first attempt clean, but quickly also established as one of the best-selling brands in South Africa. The Tiggos and QQ3s from before are all forgotten now as buyers line-up to get their hands on Tiggo 4s, 7s, 8s and Crosses. The current Tata portfolio includes two A and B-segment hatchbacks, the Tiago, its sedan sibling, the Tigor, and the Altroz. Then there are two B-segment SUV in the Punch an Nexon and two C-segment SUVs in the shape of the Harrier and Safari.
The Star
16 hours ago
- The Star
Shein and Temu linked to over 8,000 lost jobs in South Africa, report finds
As South Africa continues to battle the scourge of unemployment, a new report by the Localisation Support Fund (LSF) has found that fast-growing Chinese online retailers Shein and Temu may have cost the country more than 8,000 potential jobs over the past five years. The report examined the effect of offshore e-commerce retailers on South Africa's clothing, textile, footwear, and leather (R-CTFL) industry. "In 2024, Shein and Temu collectively achieved approximately R7.3 billion in sales, accounting for 3.6% of the total R-CTFL market and 37% of the sector's e-commerce sales," the report noted. "This rapid growth has come at a notable cost to the local economy. The estimated displacement is estimated to include R960 million in lost local manufacturing sales, 2,818 associated manufacturing jobs that may have materialised, and 5,282 unmaterialised retail jobs from 2020 to 2024". According to the report, this disruption is largely driven by Shein and Temu's highly digitised and cost-efficient business models, which allow them to offer a wide variety of products at ultra-low prices that local retailers struggle to match. "Their business models also leverage significant cost advantages through de minimis trade allowances, offshore manufacturing, low shipping costs, and data-driven consumer targeting," the report continued.
