Is Nissan Going Out Of Business? CEO Enters ‘Emergency Mode’, Lays Off 9,000 Workers

by Justin Fischer | Last updated Feb 24, 2025 | New Cars, News

In a dramatic turn for the automaker, Nissan Motor Company CEO Makoto Uchida, recently announced sweeping cost-cutting measures in response to a steep drop in profits and sales in 2024. Describing the situation as “emergency mode,” Nissan is implementing an aggressive series of cutbacks to stave off further losses. The CEO is going as far as taking a massive pay cut to show his commitment. Here’s a closer look at the company’s dire situation, and what Nissan’s future could look like in the American car market. 

Major Cutbacks and Restructuring to Save $3 Billion

On November 7, 2024, Nissan announced that it would be cutting 9,000 jobs and reducing its global production capacity by 20%, aiming to streamline operations and save $3 billion. These actions follow a lowered annual profit outlook, a forecasted 74% decline in operating profit, and a sales projection that’s down 1.2% from 2023. 

Nissan is also selling nearly a third of its stake in alliance partner Mitsubishi Motors, estimated to bring in $482.7 million in cash. Even after the sale, Nissan is expected to remain Mitsubishi’s largest shareholder.

CEO Makoto Uchida has taken personal responsibility for Nissan’s recent struggles. Uchida is announcing that he will forfeit 50% of his own compensation as the company grapples with shrinking global sales. Reflecting on the need to adapt Nissan’s strategy to “rapid changes in markets,” Uchida emphasized that restructuring is the only path forward. 

Production Cuts and Lineup Adjustments to Meet Demand

Nissan also announced that it is lowering output across several of its high-volume U.S. models, with production cuts in place for the Rogue crossover and Frontier pickup. The Rogue is made in Tennessee, while the Frontier is made in Mississippi. Together, these models account for about 40% of Nissan’s U.S. sales.

Data from CarEdge Pro shows that current inventory for the two remains sky-high. In November, there’s a 142-day supply of the Nissan Rogue, and 153 days of supply for the Frontier. That’s 60% above the overall market average today.

Nissan has also announced plans to introduce new hybrid models to the U.S. market. The Rogue will soon offer two hybrid variants: a plug-in hybrid developed with Mitsubishi and an e-Power series hybrid. This move to expand Nissan’s hybrid lineup is intended to help the company compete in a growing market. Right now, rivals like Toyota and Honda currently lead the hybrid sector.

Is Nissan Going Out of Business?

Although it’s too soon to say whether Nissan is on a path toward bankruptcy, the company’s performance has trended sharply downward for several quarters. The good news is that Nissan’s leadership is clearly committed to reversing this trend. Uchida’s personal pay cut shows that leadership grasps the severity of the situation. Without a doubt, that’s encouraging news.

These actions indicate that Nissan is not going out of business anytime soon, but the year ahead will be absolutely crucial to its long-term survival. Stay tuned to CarEdge News for the latest automotive updates and insider car market data. 

We’ll report back if any new signs of worry arise. For now, Nissan owners should rest easy.

The Fed Lowered Interest Rates 25 Basis Points – Auto Loan Rates Will Finally Fall

by Justin Fischer | Last updated Nov 7, 2024 | New Cars, News

On November 7, 2024, the Federal Reserve announced a 25 basis point (0.25%) rate cut, marking the second rate reduction since September. For the first time in years, we’re seeing a shift towards lower interest rates, as the Fed responds to economic pressures and consumer demand. While this rate cut alone might not bring immediate relief to most auto loan borrowers, it signals the start of more favorable borrowing conditions ahead. For car shoppers and owners alike, it’s time to consider how these rate changes could impact their auto loans. Here’s what you drivers should know before refinancing.

Who Should Refinance Their Auto Loan Right Now?

If you’ve seen a significant improvement in your credit score since taking out your auto loan, refinancing may make sense even after this modest 0.25% rate cut. With both the September rate cut and November’s rate announcement, the basis rate has now fallen three-quarters of one percent. That’s not a huge drop, but the trend is likely to continue on a downward path as this ‘easing cycle’ continues. 

Who should consider refinancing right now? Borrowers with better credit scores can lock in more favorable loan terms now, but it may be wise to hold off for another month as lenders gradually adjust their offerings in response to the Fed’s rate cuts.

To illustrate, let’s take a borrower with a $25,000 loan at 10% APR over a 60-month term. With the Fed’s recent cuts, lenders are now beginning to lower rates, though perhaps only to 9.25% for a similar borrower profile. Refinancing from 10% to 9.25% APR on a $25,000 loan would save approximately $672 in total interest over five years. While that’s a meaningful savings, it’s not transformative—but every bit helps. However, if your credit score has improved, you likely qualify for a much lower interest rate, and could stand to save much more with a lower rate.

For those who can show significant financial improvement since their original loan, including a higher credit score, lower debt-to-income ratio, or even a small down payment, the time to refinance could be as soon as the end of November. Locking in a lower rate will reduce monthly payments and the overall interest paid across the loan term.

Who Should Wait to Refinance?

If your credit score has only improved slightly (or not at all), it’s worth waiting for additional rate cuts and using the time to strengthen your financial standing. Economists suggest that the Fed may continue to reduce interest rates by up to 2% in total through late 2024 and 2025. These potential future cuts could bring about even better refinancing terms for borrowers with strong credit.

In the meantime, continue focusing on boosting your credit score by paying bills on time, reducing outstanding debt, and maintaining a low credit utilization ratio. When the Fed enacts further cuts, you’ll be in a better position to qualify for more competitive refinancing offers, maximizing your savings.

Additional Rate Cuts Are Likely in December and 2025

It’s anticipated that the Federal Reserve will make another rate cut in December, with additional cuts projected throughout 2025. The next Fed meeting will begin on December 17, 2024. This trend suggests auto loan rates will gradually drop over the coming months. Deciding to refinance depends primarily on your current credit health. If your credit score has improved, refinancing now could yield immediate savings at today’s lower rates.

For those whose credit scores haven’t shifted much, waiting for more cuts, while continuing to improve your credit, could lead to even more significant savings. 

In either case, staying informed on rate trends and preparing your finances will ensure you’re ready to act when the best opportunity arises. To explore potential savings, you can calculate how much a lower rate would save using CarEdge’s free auto loan calculators. Whether you’re prepared to refinance today or prefer to wait for the next Fed move, understanding your options will help you make the best financial decision for your car loan.

Learn more about saving on auto loan interest (free guide)