Nissan, Don't Fail Us Now =-( - EP.105

In this episode we discuss the current state of affairs within Nissan, & how they got to this obvious low point the manufacturer is experiencing. We debate on whats next, and how we would get out of this mess if we were the CEO. 


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Transcript

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Hey, and welcome back to the next episode of the right-hand drive guys podcast the podcast for guys who like right-hand drives I'm Bobby. This is Aaron. Yeah, we go and here we are. We're back again episode 105 Cool, so I don't know man. We we were like What the hell is wrong with Nissan That's pretty to put it as you know Yeah, they've been in the headlines this past week. Yeah, they really have and so Nissan struggling like Nissan struggling like your buddy that could never keep He's living paycheck to paycheck He's you know what I'm saying like Nissan is like Bumped six from you right exactly living on your couch Yeah, so that's kind of where we're at we're like Nissan don't fail us now like after all these years Yeah, after everything after all the ups and downs after all the the championships and the losses everything like don't let us down in 2024 dude right right you've been here too long. Yeah, yeah, you've earned your place and so Yeah, I mean how does this happen, you know, so Nissan is cutting 9,000 jobs Yeah, they're reducing their production capacity by 20% That's that's a boom that's quite a lot especially when you're talking you know millions of dollars worth of Worth of ours. Yeah, yeah 20% yeah, and so Even the Nissan CEO Eucita is taking a pay cut a pay cut by 50% Yeah, he must be going down to only you know, that dude's gonna be bumping six from you. Yeah 50% still probably more than we could imagine Yeah, I'm sure You know, but apparently they're calling it a severe situation and you were saying How much are there was it was it down 70% yes So 70% is what they're expecting their sales to be down yeah from Was it three billion? Yeah, it was in the billions for sure. Yeah, so down to hundreds of millions Yeah, so just think about that think about their global workforce think about Just everything that they're spending money on that they're gonna have to reduce yeah, they They're in trouble dude it like You know only in running a business and thinking about losing 70% of my income Dude that would be crippling Yeah, I mean to most people it would be yeah and so It's kind of it's kind of tough because they're like a legacy car car maker, right? So they really like it's kind of Almost similar to the GM thing right right like when they shut down a Pontiac Oh Think they had to do restructuring and they had to refigure out their brand and and Bre meet their customer. Yeah, I mean Think about it. We lost multiple We lost at least three car brands car makes when GM shit the bet So what are we going to lose? We how does Nissan make it out of making 70% less but still give us a small small ratio of their Overall income and customer base where the small we're bleep on the map. Yeah as far as Global customers and like revenue, you know, so Nismo and these programs the heritage collection these different things The global HQ all the all of these kind of torsty things and These skyline people things right those how could those not some of it be on the chopping blog? Right is that is that why you can't get Z-Tune stuff anymore? Is it I mean is that why you can't buy the display at the Murray factory? Yeah, cuz that's literally the last one. Yeah, I mean Yeah, I heard that it was a supplier issue, but who knows right? I mean you would think they'd be able to sell that stuff You think they'd still be able to do the stuff that's making money, but I guess I don't know how their funding works Internally, you know how does Nismo or Nismo get its money? Right, you know because I mean sure it's easy to say like yeah, why aren't you guys producing the RB26 blocks, you know Why aren't you guys producing this or that but like? Dude, yeah the enthusiast the skyline enthusiast I feel like is a very Like we were talking about very small piece of this global company so it's hard to give that attention when it's You know making you a few million where this other thing is making you closer to a billion right or yeah more than that right like even if Yeah, I mean so there's got to be cuts somewhere. Mm-hmm. I'm not sure Exactly what they're gonna do with it and then now enter Chinese auto makers who are Becoming more and more respected and so their market Nissan's market share is gonna shrink with that because they're gonna take some of it Right, I mean it's it's kind of I don't know if that's a tough business to be in right and I don't know how they didn't see this coming Yeah, and you know nowadays I can't think of a single Nissan other than obviously the Z and the The GTR that's also on its way out yeah other than those two I can't even Honestly tell you a Nissan car that I would go to the lot and buy brand new yeah, I mean is that part of the problem? That their cars are just like I don't know I mean just not exciting enough Yeah, I mean I think that's a lot of brands issues period right now, you know like Back in the day Right like it wasn't all about and this has gotten worse since Tesla and EVs have come out with their screens and it's all electronics right but back in the day You know 90s like Even early 2000s sure you maybe had your radio on but that was your only That was your only sensory input that wasn't the car itself Right, you know what I'm saying like whether it was shifting the gears the clutch the gap, you know everything rolling up the window Right, it just all of that, you know, it was there was just more feedback to the soul so to speak right now like They make cars so simple it takes away the excitement They only want you parking it yourself and fucking it up like it's like crazy, dude, you know the new cars are just So the in its sensory overload in there. There's LEDs here. There's a 27 inch screen here. There's a screen in your rear view. There's a screen for you know odometer there's a screen like it's just like damn dude like It's just put you into this box Yeah, so do I think just them not having you know the Sports versions and now they'll have one single sports car Yeah, really now that they've eliminated the GTR which Mixed feelings like yeah, we needed to get rid of the R35 But not until we had an R36 which we had in insane amount of time to do Like insane amount of time. I've seen so many fake renderings for R36 Oh, yeah, yeah, yeah, so many fake renderings and I'm like dude just give us any Yeah, right they have their pick dude. They've already designed it for them like yeah, just look at look at the analytics who got the moment Okay, there's your car right like that's what you would think but they just Dude for 10 plus years 15 years or whatever they literally just rode that horse Frontwards backwards all around you they just fucking You know and so Yeah, I'm a I'm a proponent for like an S16 Sylvia right which they've had concept cars for that too Yeah, I know and so I know the S16 Sylvia Rendering I saw recently was like sick dude. I was like dude. I would take that like But that's the thing and you know we're having that that sidebar conversation about pretty much You know the GR86 is in this price price range and if you go around drift days circuit days Whatever you'll see those at the track because they're you know any Tree level right? Yeah, yeah, and they're anywhere from like brand new we're talking right 30 to 40 grand Right, you know 30 to 40 grand that's not cheap, but 30 to 40 grand is Affordable so to speak then 25 to 30 grand was in the 90s right to get 25 and 30 grand in the 90s felt like hardest out, you know like it was much harder come by where I feel like you know You can get approved for loans, right? You know the inflation rate that includes you know, so it's it's kind of one of those things But when you go over to Nissan The only sports cars to Z right and it's what motors in that like It's a twin turbo V6 twin turt so That's 45 to 60 K, right? You know in 65 if you want Nismo right, so that's a little that's like out of that That's not like quote unquote easy to come by so to speak right right? I mean, I don't think it's in the same class as like a GR86 right now. It's more middle Right middle of the room and I think you know that's like a Market that people are missing I feel like is that entry level, you know, rear-wheel drive in a 4 cylinder. Yeah, like Yeah, I could I definitely definitely agree and Production costs aren't like insane on this low low-tier car, right? You know, you just got to put the right motor and it make a rear-wheel drive like don't make it super ugly right and The enthusiast will buy is it gonna bail your company out of a 70% loss hell no, there's screwed Right, right, but it'll make it hurt a little bit less out of magic Yeah, I mean that's something that obviously people have been asking for for years and like yeah It's a part of the market that's being fulfilled by Toyota and Feel like Mazda maybe with the with the meada. Yeah, like which they're still sitting on like they got a They need their whole different mess, you know like Obviously, they're they're doing their book work and they're not the ones saying That they're losing 70% right, but still they got to do something too, you know but yeah, I mean They're trying to get out of it, you know an activist investor Came along pretty much bought two and a half percent and You know nobody any of us if it has ever heard of you know some capital fund and the Nissan shares on the star star star crew Stock market jumped more than they had in the past 15 years When when this investor bought two and a half percent. Yeah So that's some good news Yeah, and so I I guess this is it's like a fee F e simo capital so They're from Singapore. I guess they buy distressed companies. I'm like, dude Wow. Okay, they go around by people there on their last leg Yeah, got it but whatever I guess it works for Nissan and you know It's it's like what you were saying all these new cars are boring, you know What's the difference between a Nissan and a Kia and a you know whatever in this Chinese? Well, what's what's the difference between besides price right like like we said there's no input anymore the driving excitement is gone like It's just to your car just to go somewhere now. It's not to drive it right yeah, and it's just nothing nothing special I guess you could say like I mean even as a commuter car as a daily driver I couldn't think of a Nissan that I would really want but you know, I could think of a couple haunders You know because you know whatever cool little unique things they got this cool Right, yeah, yeah, stand out right right like a cup holder on the left dude in the armpits. Yeah, that's it Yeah, I mean For sure, I get what you're saying they they do need to be unique. They need to Find out it's almost like they've lost their identity. Yeah, like that's almost how it feels is they've like lost their identity And they need to get creative to to regain that identity, you know that brand identity So it's big and especially shedding the R35 now their identity doesn't it can't include motorsports really Yeah, I mean the 400 right. I mean yeah, I mean that's right. It's not the I mean it doesn't have the prestige there's no flagships like sports car right besides the Z I mean, no, yeah, they got to come out with something. I mean you would think but not when you're losing 70. I know Yeah, so I mean that is That's what's tough. They're in a pickle. They Thought they were gonna have more than what they did. They're not gonna so We were reading that Mitsubishi and I think we're understanding this right purchased back because Nissan had invested in Mitsubishi. Yeah, Mitsubishi purchase back 10% of that right and so that's capital to go in the bank, but then They own now own only 24% of Mitsubishi correct They're also in alliance with Renault. I guess as well. Oh, yeah, that's weird. That's such a weird thing That's where they went wrong. I feel like yeah, they should have found some other automakers that were like I mean everything that they were kind of doing in the 2010s. I feel like Was all the wrong move? Yeah, you know, there was no I don't know and I think that's where it all started to go wrong is Probably yeah, and that crazy CEO they had that ended up, you know being wanted and Yeah, in the country and that just that's a whole other story of the car those go or Yeah, that's who it is. Yeah, I mean, and so Yucita comes in and is trying to pick up the pieces, but I mean, yeah, sometimes that's not as easy as it might have already been seeking Right and all you're trying to do is just plug the whole but eventually the whole, you know breaks three and now It's the ugly truth Your company is struggling. Yeah, so if you're Yucita What is your plan like you know in the basic sense what are you doing to turn this Chisholor around? I mean, I would look at what the people want and what can be sold and I don't know what can bring people back to the brand that have maybe left in You know they're buying something else now because Nissan just makes boring cars So yeah, I would just look at what people want which I feel like is you know affordable sports cars or just like just not Not the same boring cars they have now pretty much and trying to capitalize on that and Seeing where that goes. I mean It's hard saying because that's obviously I mean you got to think about you know globally I guess but I feel like that's that's an obvious one though It's just making a car that people actually want to buy that's affordable Do they can move units of? Yeah, I mean that that does make sense. I mean you need to move units and so if it if it was me and Yucita shoes Yeah, what would you do? I would simplify on all sides of the company I would lean out and I would figure out exactly where We're not making money like what is not making us money and I cut it out it would hurt It's gonna hurt some people is gonna hurt Japan it's gonna hurt but I would lean right out. I would simplify my offering I would reel back in all these things that I have going and I would simplify that into a I would almost restart with my model lineup and everything to simplify and like Yeah, that's probably where I would start is simplifying all of that and leaning out heavily and then figuring out how to grow back into your shoes right instead of trying to fill these shoes when Your feet are killing you know, whatever the case may be right so and that's not that crazy I mean if you think back a few years ago Ford cut all of their cars out of their product lineup except for the Mustang Pretty wild. Yeah, first man. I mean to say that you're a car company that's not gonna make any cars anymore except for your flagship sports car Yeah kind of a big reason right, but Ford's been one of those companies that have kind of been able to sustain themselves and Get through the hardship per se yeah Yeah, yeah, for sure they they might have did just that you know They saw what people wanted and leaned out operations and their lineup to focus on what actually the people Want and what they'll sell I guess you know in him sand. Yeah, and I mean Hey to use fordness example. Yeah, yeah, that's tough, but it does I mean It's hard producing so many models right like because of just all of the different resources it takes yeah to produce the models and a lot of R&D And just all that I mean a lot goes into behind replacing just one car or you know, yeah, I mean So I don't know that's what I would do. I would just simplify it You know, I guess if I had to simplify it. I mean I don't know the EVs are like cool, but It's just becoming too much. You're spreading yourself out too much right But however Nissan sure they do have some trucks, but they're not like this crazy truck company, right? They're not selling truck units like Ford and GM right so you can't just say cut out all the cars But you have to figure something out and of course yes, I would say You need an R36 even if it's dude make it super limited. Yeah, if you need to make it like 500 a year whatever it is right something To keep that about your identity and then of course the entry-level sports car right the four cylinder rear will drive like the S16 Right, you need an S16 and you need an R36 100% to keep Us interested like our type of people right like We're gonna fall off from you as a brand in 2025. Let's say and we're only gonna be cool with you as a brand in in 1999 or 95 right like like yeah, no, I love Nissan. No, no, no like the old Nissan like no, no, no that new shit sucks I like that, you know, and I don't want to be saying that right, but yeah again. Yeah besides the GTR There was nothing worth buying over the past 10 years like Yeah, that's why I'm not driving a Nissan truck although like I don't I don't mind their diesel ones. I mean, but it's not even their own motor right there. Yeah, they're like makes a match on some things But globally though they do have their own diesel brand Yeah, I mean, I mean Nissan diesel like is pretty big like in Japan. You see him. Yeah. Oh for sure like the little Cab over trucks or whatever right right even pretty big ones. Yeah, for sure I mean and maybe that's what they should focus a little more on instead of like all these SUVs and EVs and like right. I don't know, but We're not running it. No, it doesn't really matter what we think, but I mean I hope they figured out. Yeah, so Worst case right worst case scenario here Nissan goes belly up What happens to What happens to the heritage program the parts program and You know the nismo line of things what happens to all that you think I don't even know If it takes that long until they go belly up so to speak right like I don't I think that stuff's on the chopping block Maybe not today, but I mean if things don't turn around that's on the chopping chopping block that's No matter what it's a whole Thing right, you know, and it's something they have to manage they have to staff they need Accounting all of that stuff for it if you can cut those things out. Yeah Reduce all of that maybe that's part of your leaning out. I don't know, but We are a small small we are spec a dirt on their Playing field dude, right do you think Someone would step up to start producing things for these cars given that the OEM manufacturer is Gone maybe but I feel like they got they have a challenge ahead That be a lot right because Like for instance garage is she to write they have the The ability to press out these panels and things Yeah, like things along those lines like what happens like Is someone in a bind all that machinery or does it disappear and these cars come Irreplaceable like and that and the value more than they are the value would go up for sure Especially yeah, I mean that would be wild and I would hate for that to happen me too I yeah, I don't I don't need any more value on a car. I want like my OE people still involved. You know what I mean? So Yeah, I mean, I hope that doesn't happen either, but they got to get creative They got to put the heart and the soul back into it. They need to do it for the driver like sure I guess have your one vehicle that's for The rider yeah, but make do make some stuff for the driver right because that's what everyone's losing And the first company that really comes back on that I mean in summer trying, you know But the first company that really puts the driver first I feel like he's gonna win yeah, you know And whether people like it or know it not like it whether they know it or not They do enjoy driving it. Yeah, you know, it's just maybe that's not the first thing on their mind But as everything is faded off they've just gotten complacent in this Tech bubble thing, you know, like that will drive for you pretty much You only so yeah, they've lost the love of driving because They don't drive anymore, right? They ride, you know for the most part so We got to get the love back the love of driving when we get in these. It's because we love driving them. Yeah Yeah, yeah, 100% my heat hasn't been working, but like It doesn't stop me from driving on the freezing day. You know what I'm saying? Dude and tell that first snowflake and first salt truck goes by. Yeah, it's all games I think exactly that's what I'm saying because because I love driving it and They they need to produce cars that you know give people that feeling Yeah, like 100% that's what it's missing from them. Yeah, that's the basis of it give people that good feeling make them enjoy Driving your cars and they'll buy your cars. Nissan dude if you're listening to this Make something I want to drive. I'll buy it. I'll trade in my GMC. I'll do it like Let's get something going for the people that want to support you. Yeah, make some six speed cars Do not put the CVT and everything right? That's true the CBT trash. I thought we learned this like a while ago Yeah, yeah, stop doing that I mean the CBT away right get that clutch pedal back in there. Yeah dig them out of the archives Dude put the clutch pedal back in there and see yourself sell some cars dude. What'd be really cool? If Nissan had the foresight to like On some of these new cars like for instance like some of these cars they produce new they could uh They could use parts that you could also use on your skyline like oh wow so like they're using Old part right right you get like a two for one right. Yeah, that's pretty cool. That'd be pretty cool. Nissan Nissan what's up? Hey, hey, hey out when the time comes. They already got the design for it right yeah They just like retrofit it into a new car and then they can have the New stock for to replace and make it Yeah, that's a being saying You're right because a lot of the parts have changed and gotten cheaper you know, right? It's a whole it's a whole thing when you're talking 25 years span Right, you know, but that'd be crazy We got nothing but love and respect for Nissan and we're definitely We're over here crossing our fingers that you guys are in some Some boardroom right now just Rip eating each other new assholes just pissed off because yeah, you're you're I don't know performance is super subpar yeah, and you guys should be embarrassed. Yeah, but With every low it can come a high right if they just actually do Rip each other new assholes in that boardroom and figure it out Then come back to us as a consumer base and give us what we need yeah if you keep feeding us the junk We're gonna keep not supporting you right and this is where you end up 100% and I'm still trying to go to or I'm a mori factory and all that shit so don't be close in that doubt Don't be doing it that bathrooms way too dope. Hey, maybe you should use one or two less camp shafts on the wall or maybe page your bills and he's on Chill, so My frustration that they let themselves get to this point is coming out You know like you guys let yourselves do this Dude right oh well, so positive vibes in Nissan we love you Uh, might talk a little shit on you right now. Yeah, but hey, you need it for motivation. Yeah, you need it It's like that dad that would talk shit to you but really love you, you know, yeah All right guys, we appreciate you listening as always, you know, this was episode 105 You can find us on the internet at rhd g us and for episode 105 Nissan don't fail us now. Please don't I'm bobby. This is Aaron. See ya peace[Music]