Many people in the market for the best cars to buy consider Nissan vehicles. Unfortunately, it still seems like not enough buyers actually drive home in one, as sales are still down. Now, the automaker has announced that it’s slashing jobs and selling a portion of Mitsubishi as a cost-cutting measure. Still, the higher-ups are saying this doesn’t mean Nissan is getting smaller as it restructures.

Nissan vehicles aren’t as popular as they once were

Nissan has quite a few options for people looking for the best cars to buy. However, this has not been enough as sales are in a tailspin, prompting drastic measures. Now, according to Reuters, the company just announced more cost-cutting measures. Perhaps the most controversial part of this $2.6 billion cost-cutting plan is that the company will eliminate around 9,000 jobs, which will erase 6.7 percent of its staff. 

Additionally, Nissan plans to scale back production of its vehicles. In fact, the company intends to cut its production capacity by about 20 percent. This plan also includes reducing the production lead time for its cars to 30 months. It will also collaborate more with partners such as Renault and Mitsubishi. Speaking of Mitsubishi, Nissan owns 34 percent of the company and hopes to sell up to 10 percent of it during these troubling times. 

Once again, Nissan is also reducing its annual operating profit forecast because of the decline in the popularity of its vehicles. This time, the company is lowering expectations by 70%. Notably, this is Nissan’s second time taking this measure in 2024. 

So, why is Nissan struggling to sell its vehicles? First, the automotive giant is facing severe issues in China from competition. Secondly, sales are low in the United States, but Nissan has also lost money on marketing and on the many deals it offers customers as a way to entice them to buy. Also, the company doesn’t offer a hybrid in the States despite the demand, which means customers are going to the competition. Nissan’s global sales fell by 3.8 percent in the first half of the year. 

Still, there is hope for Nissan and its vehicles. After all, some of its models, like the Rogue, are pretty popular. For more reading on Nissan’s problems, check out this recent article about its mounting inventory.