Part 7/13:
The plan showed promising results; in 2021, Nissan returned to profitability with a ¥247 billion ($2.2 billion) operating profit, ending years of red ink. However, margins remained tight at only 2%, and the target of a 5% operating margin and 6% global market share loomed distant.
The Downward Spiral: inventory gluts, market shifts, and strategic errors
By 2023, Nissan appeared to be on a comeback, with margins inching towards 5.2%. Yet, beneath the surface, issues brewed. Production bottlenecks during model transitions led to massive inventory build-ups: over 640,000 unsold cars in early 2024, about half sitting in dealerships. Price cuts and incentives were deployed but failed to address deeper problems.