As the COVID pandemic eased up, Nissan CEO Makoto Uchida went full-speed ahead on an all-electric future and stepped away from hybrids. That decision could end Uchida's tenure as the head of Nissan, as it's a major factor in the automaker's current financial woes.
At least that's the conclusion in a recent report from Reuters, which revealed some internal concerns over Uchida's vision to leave hybrids behind. Citing unnamed sources familiar with Nissan's plan, questions arose months ago from managers about the lack of hybrid models for the US market. The report alleges that Nissan leadership didn't think the rising demand for hybrids would last.
“It’s an excuse, but up until [November] last year, we were not able to foresee the rapid rise in demand for hybrids," said Uchida, according to Reuters.
The irony here is that Nissan is selling vehicles. Sales in North America are actually up 1.7 percent versus 2023, which was significantly higher compared to 2022, when supply chain problems were rampant. That said, Nissan's luxury brand Infiniti is down 12.8 percent. As a result, Nissan Group's overall sales are down 2.2 percent in this neck of the woods. That's still not terrible, but as Reuters explains, sales are largely driven by incentives that take a swipe out of profits. China is also a major factor, where overall sales are down 13.1 percent.
That means Nissan is struggling on a global scale. Last month, the Japanese company announced its operating profit was down an astonishing 90 percent through the first half of the fiscal year. Net income was down 94 percent. That prompted CEO Makoto Uchida to announce a bevy of reforms and cost-cutting measures. But cuts can only go so far.
Nissan is planning an electrified blitz with 16 new hybrid powertrains coming by 2027. Of course, that depends on the company surviving long enough to make that happen.
Source: Reuters
