Part 8/11:
The Fate of Struggling Manufacturers
The automotive industry is often characterized by its reliance on consumer credit, supplier relationships, and global trade. However, failing companies like Nissan are now facing grave challenges. Sales are down due to aging lineups and plummeting brand perception. Their aggressive financing strategies that initially boosted sales have backfired, creating financial liabilities that could lead to insolvency.
The Japanese government attempted to broker a merger between Honda and Nissan in a bid to salvage jobs and stabilize the economy, though such efforts fell short. As more car makers struggle, similar government interventions are likely to emerge as a means of protecting jobs and maintaining economic stability.