Nissan’s New CEO Faces Steep Road Ahead Amid Sales Slump and Tariffs

Nissan's new CEO, Ivan Espinosa, is facing mounting pressure to revive the struggling Japanese automaker amid falling global sales, rising tariffs, and growing competition. Since 2017, Nissan’s global sales have dropped 42%, and the company forecasts a further 3% decline this fiscal year to 3.25 million units.

In response, Espinosa has unveiled a major restructuring plan, including 11,000 job cuts and the closure of seven plants. Despite efforts to focus on cost-cutting, analysts stress that real recovery hinges on launching competitive models—a challenge given Nissan’s weak EV and hybrid lineup and aging vehicles. The company plans to launch plug-in hybrid and e-Power versions of its top-selling Rogue SUV in North America, developed with partner Mitsubishi, but analysts remain skeptical of strong demand.

Nissan is also battling profit margin erosion, especially in its key U.S. market. Although sales there reached 938,000 units last year, much of that growth came from low-margin models like the Sentra and Versa. Tariffs imposed by the U.S. are expected to increase input costs and could cost Nissan up to 450 billion yen ($3.1 billion) this year. Meanwhile, aggressive incentives to clear old inventory are further straining margins, which fell to -0.5% in North America.

Competitive pressure is intensifying, with Suzuki overtaking Nissan in Q1 2025, positioning itself as Japan’s third-largest automaker. Nissan’s stock is down 29% year-to-date, the worst among Japan’s major automakers, and analyst sentiment has turned overwhelmingly negative.

Espinosa, who replaced Makoto Uchida after failed merger talks with Honda, must now navigate brand damage stemming from years of discount-driven volume sales under Carlos Ghosn. Whether Nissan can execute a timely turnaround remains uncertain amid mounting external and internal headwinds.