For some reason, American drivers aren’t flocking to the most popular Nissan SUVs and trucks like they used to. Models like the Nissan Rogue and Nissan Frontier are modern, plush, and athletic, so what’s the problem? Whatever it is, it’s causing a 93% drop in profit. 

Low sales cause a severe situation for Nissan SUVs and trucks 

Nissan SUVs and trucks are facing a massive sales decline, especially in the North American market. As a result, Nissan reported a 9% decline in profit for the first half of 2024. 

Makoto Uchida, Chief Executive Officer of Nissan Motor, shared that Nissan is taking urgent matters to tackle this severe situation. 

Roughly 9,000 jobs are being slashed from the global workforce. Plus, Uchida is voluntarily forfeiting 50% of his monthly compensation starting in November 2024. Other executives are also taking pay cuts. 

Nissan is also reducing its stake in Mitsubishi Motors by selling shares back to the firm. Its stake will be cut from 34 to 24%, but Nissan will continue to workly closely with Mitsubishi. 

The sales forecast is hovering around $12.7 trillion yen or $80 billion instead of the previously expected $14 trillion. 

Most of the blame is attributed to a lack of sales for core Nissan SUVs and trucks in America. Core vehicles include the Nissan Rogue, Nissan Frontier, Nissan Pathfinder, and Nissan Armada. 

Uchida explained that from the cost and brand strength perspective, Nissan will rebuild the brand in America. However, sales have been declining during the past five years. 

Part of turning Nissan SUVs and trucks around include developing hybrid engines to better compete against Kia, Hyundai, Toyota, and Honda. 

The Nissan Rogue Hybrid is expected to arrive by 2027, which feels a little late. Also, the Nissan Frontier could go fully electric. 

Upcoming challenges such as potential Trump tariffs will be carefully navigated to maintain long-term plans.