{"id":4388,"date":"2026-07-28T08:11:31","date_gmt":"2026-07-28T08:11:31","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=4388"},"modified":"2026-07-28T08:11:31","modified_gmt":"2026-07-28T08:11:31","slug":"can-a-global-car-company-survive-todays-complicated-world-nissan-hopes-to-find-out","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=4388","title":{"rendered":"Can a global car company survive today\u2019s complicated world? Nissan hopes to find out"},"content":{"rendered":"
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Its choice: Ivan Espinosa, just 46, and not Japanese\u2014unusual in a country where corporate leadership has long been considered a job for a Japanese national. Espinosa remembers being shocked by the request.<\/p>\n

Read more Sun Life launches global private wealth platform targeting Asia\u2019s booming HNWI market<\/a><\/p>\n

The CEO jokes that he was \u201cborn in Nissan.\u201d He was, in fact, born in Mexico, where he started with the company as a product engineer in 2003. After roles in Southeast Asia, Europe, and Latin America, he moved to Japan in 2016 and became Nissan\u2019s chief planning officer in 2024, exposing him to all the ways the company failed to right the ship. \u201cI knew what had to be done,\u201d Espinosa told Fortune<\/em> earlier this year. \u201cIt was obvious you had to resize the company.\u201d<\/p>\n

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Nissan\u2019s turnaround is about more than just whether the 93-year-old carmaker has a future.<\/p>\n

For decades, global carmakers like Toyota, Nissan, General Motors, and Volkswagen manufactured and sold their products all over the world. But that model no longer fits today\u2019s more protectionist, more competitive world. Nissan\u2019s current strategy underscores this transition, as the company orients itself around two markets: China and the U.S.<\/p>\n

\u201cYou have a China ecosystem, and you have the U.S. ecosystem,\u201d Espinosa said. \u201cIf you want to be a global company, you need to live in both.\u201d<\/p>\n

Nissan Motor, founded in 1933, is the oldest of Japan\u2019s Big Three automakers. After the Second World War, Nissan quickly embraced the global car market: It started exporting Datsun cars to the U.S. in 1958. <\/p>\n

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When Fortune<\/em> debuted the current form of the Fortune Global 500 in 1995, Nissan was No. 23, with $58.7 billion in revenue. Today, Nissan is No. 168, with $79.7 billion in revenue in its last fiscal year, a 4% drop from the year before. It also reported a $3.54 billion loss, one of the largest on the list.<\/p>\n

For years, Nissan had suffered from overproduction, high costs, and slow product development, says Takaki Nakanishi, an automotive analyst at Astris Advisory, a Tokyo-based financial research firm. Back-to-back annual losses piled on the pressure and prompted shareholders to demand a fix. In December 2024, Nissan engaged in a frantic maneuver to save the company: It aimed to merge with Honda and create a car giant large enough to compete with both Toyota and Chinese EV giant BYD. Yet a few months later, talks were off, as both sides disagreed over control. Nissan\u2019s then-CEO, Makoto Uchida, was out, and the Mexican-born Espinosa took his place.<\/p>\n

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Within six weeks, he\u2019d developed a plan to both cut costs and keep up with the competition. The result was the Re:Nissan plan, announced in May 2025. The plan promises 500 billion yen ($3.1 billion) in savings; seven plant closures; 20,000 layoffs; and a reduction of development cycles to a little over two years. <\/p>\n

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Nissan now expects to return to profitability in the current fiscal year. But \u201cit\u2019s easy to cut costs,\u201d Nakanishi says. \u201cIt\u2019s more difficult to restore the value of the brand.\u201d<\/p>\n

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Repairing Nissan\u2019s business in North America, its most important market, is crucial to the brand\u2019s comeback. The company sells just over 40% of its cars in the region\u2014primarily, the U.S.\u2014making it the \u201cpowerhouse\u201d within Nissan, says Christian Meunier, the carmaker\u2019s Americas chair.<\/p>\n

Like the wider company, the North America division needed streamlining. When Meunier, a Nissan veteran, came back to the Japanese carmaker in 2025, he says he found a company he \u201cdidn\u2019t recognize.\u201d He went \u201csuper aggressive,\u201d stripping out $2 billion in fixed and variable costs in just 12 months.<\/p>\n

But the biggest threat to Nissan\u2019s U.S. business didn\u2019t come from corporate bloat; it came from Washington. In March 2025, just a few months after Meunier returned to Nissan, and a few days before Espinosa became CEO, U.S. President Donald Trump announced 25% tariffs on all imported passenger vehicles. (Tariffs on imported Japanese cars now sit at 15%, following trade negotiations between the U.S. and Japan.)<\/p>\n

Trump\u2019s tariffs snarl Nissan\u2019s supply chains in two ways: First, they make cars and components from Japan more expensive; second, they threaten Nissan\u2019s supply chains over the U.S.-Mexico border, which had flourished under the North American Free Trade Agreement and then the U.S.-Mexico-Canada Agreement.<\/p>\n

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According to Meunier, Nissan has cut its tariff exposure from $4 billion to just $1.5 billion in 12 months. \u201cWe worked with our suppliers down to the bare bones\u201d to identify U.S.-made components, subcomponents, and engineering work that can offset tariff exposure, Meunier says.<\/p>\n

Mexico will remain a key part of Nissan\u2019s North America operations. Nissan will keep producing entry-level cars, like the Sentra and Kicks, in Mexico, as these low-margin models can\u2019t be made profitably in the U.S. Meunier pitches Mexican production as a solution to the U.S.\u2019s affordability crisis. \u201cPeople can\u2019t afford a new car,\u201d he says. \u201cHaving entry-level cars made in Mexico makes sense for the U.S.\u201d<\/p>\n

Nissan sold 361,563 cars to U.S. drivers in the first six months of 2026, an 8.3% jump compared with the same period a year earlier. But Meunier isn\u2019t declaring victory. \u201cPeople ask me: \u2018Are you satisfied?\u2019 No, I\u2019m not,\u201d he says. \u201cI think 60% of the job has been done. We\u2019ve got 40% to go.\u201d<\/p>\n

Read more China\u2019s exports are so huge they\u2019re now lowering inflation in other countries<\/a><\/p>\n

If you\u2019re ranking Nissan\u2019s most important markets, China is close behind the U.S. <\/p>\n

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Foreign carmakers that operate in the country have struggled to stay afloat as Chinese companies undercut the global competition with cheaper and, frankly, better electric vehicles. Nissan sold 653,000 vehicles in China in its previous fiscal year, down 6.3% from the prior year.<\/p>\n

Rather than wash its hands of the China market, Nissan wants to target 1 million in vehicle sales there by the end of the decade. But China may be more useful to Nissan as a classroom than as a consumer market.<\/p>\n

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\u201cThis will sound like a crazy answer, but our collapse in China helped us. We had a massive come-to-Jesus moment,\u201d says Alfonso Albaisa, Nissan\u2019s senior vice president for global design.<\/p>\n

Chinese designers worked at a pace that was \u201csimply stunning,\u201d he explains, and companies that couldn\u2019t operate at that speed fell behind. \u201cThere\u2019s no reason to do a bunch of PowerPoints and come back to the CEO three months later with a plan. It\u2019s already too late,\u201d he adds.<\/p>\n

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He\u2019s taking the lessons learned from \u201cChina speed\u201d to other markets. Nissan has reduced the number of executives involved in some design decisions from 12 to three, and is using AI and digital tools over traditional full-size clay models. Albaisa also transformed Nissan\u2019s Los Angeles studio into a prototype design operation with just seven designers and \u201cmonster computers.\u201d<\/p>\n

Paradoxically, Nissan may be fortunate in that it\u2019s going through its own painful restructuring ahead of its competitors. Honda posted the first annual loss in its history last fiscal year, and has gutted its EV plans. In April, Toyota abruptly replaced its CEO, Koji Sato, with CFO Kenta Kon after reporting a $9 billion hit to profits as a result of Trump\u2019s tariffs.<\/p>\n

On this year\u2019s Fortune Global 500, six of the year\u2019s 20 largest losses came from car companies: Stellantis, Renault, Ford, Nissan, Honda, and Geely.<\/p>\n

Carmakers used to be the ideal global manufacturer, running vast cross-border supply chains and dominating large markets like China and India. Much of that swagger has faded as legacy carmakers are buffeted by the EV transition, new Chinese competition, and supply-chain pressures including Trump\u2019s tariffs, rare earth export controls, and an AI-driven memory-chip shortage.<\/p>\n

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\u201cHow do we manufacture cars in a way that they reach a global market as well as hyper-regional markets?\u201d asks Robert Duffer, a longtime auto journalist. \u201cWhat sells well in California isn\u2019t going to do a thing in Texas.\u201d<\/p>\n

Nissan might be turning into something akin to a \u201cregional multinational,\u201d sharing technology and platforms across different markets, but moving away from a single global model. In North America, it must localize production and rebuild trust among dealers; in China, it needs to move at \u201cChina speed\u201d and export domestic innovation to the rest of the world.<\/p>\n

But Espinosa knows he can\u2019t go so far as to run entirely separate operations in each of the world\u2019s key markets. \u201cIt\u2019s easy to make one solution for China and a completely different solution for North America, but it\u2019s crazily inefficient,\u201d he said. \u201cIt\u2019s just not economically viable.\u201d<\/p>\n

The role of Nissan\u2019s headquarters will be to provide \u201cguardrails,\u201d he said, so his team can \u201ckeep innovating, keep pushing the boundaries, and make the coolest cars that drive by themselves.\u201d<\/p>\n

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\u201cWe\u2019re an engineering company,\u201d he added. \u201cUs engineering people? We like to invent things.\u201d<\/p>\n

This article appears in the August\/September 2026 issue of<\/em> Fortune with the headline \u201cNissan\u2019s high-stakes reboot and its race to stay global.\u201d<\/em><\/p>\n

Read more Elon Musk\u2019s vision of a post-money future got mocked. Vinod Khosla warns it could become a dystopia instead<\/a><\/p>\n

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“You have a China ecosystem, and you have the U.S. ecosystem,” CEO Ivan Espinosa said. “If you want to be a global company, you need to live in both.”<\/p>\n","protected":false},"author":1,"featured_media":4387,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[494],"tags":[],"class_list":["post-4388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nissan"],"yoast_head":"\nCan a global car company survive today\u2019s complicated world? 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