EV Loser Nissan Fires 20,000
If the future of the car business is EVs, Nissan has given up. With only two EV models in the US, it fired 20,000 people. The move is not totally due to EV problems, but it does indicate that Nissan may have no future at all.
Nissan sells the LEAF and ARIYA in America, but it can’t grab any meaningful market share. It has almost no sales in China, the EV capital of the world. Nissan Motor Co. CEO Ivan Espinosa says that the cuts are necessary to make the company financially viable. “In the face of challenging full-year 2024 performance and rising variable costs compounded by an uncertain environment. Nissan must prioritize self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.” A size cut implies that Nissan will focus on its sales winners.
Compete With Tesla
Nissan is up against Tesla, Chinese EV operators, and legacy car companies like GM and Ford, which are willing to lose billions on what they believe will be an EV-driven business. Nissan admits it does not have the balance sheet to pursue a similar path.
Nissan is not the first company, nor will it be the last, to consolidate, which will leave the EV market with fewer players.
As the EV business falters, the industry will keep contracting.
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