✌️ Nissan: "We Should See Other People"

The Gist

Nissan just dumped Honda after rejecting the idea of becoming a subsidiary. Now, it's swiping right on U.S. tech firms and maybe even rekindling things with Foxconn. Meanwhile, Nissan’s financials are in shambles, and it’s throwing cash incentives at dealers to boost U.S. sales—up to $1,000 per car if they hit volume targets. Some dealers love it, others see disaster brewing. With a 94% income drop and layoffs looming, Nissan needs a new partner fast. More details expected mid-February—stay tuned to see if Nissan finds love or just another bad rebound.

Action!

In a plot twist worthy of reality TV, Nissan has reportedly told Honda, "It’s not you, it’s me"—and by "me," we mean Nissan’s refusal to become a Honda subsidiary. Just yesterday, we were gearing up for a potential Nissan-Honda merger. Today? Nissan's out here swiping right on new partners, ideally in the U.S. tech sector.

What Happened?

• Nissan’s CEO Makoto Uchida officially informed Honda that merger talks are over. (Cue dramatic music.)

• The deal reportedly hit a wall when Honda suggested making Nissan a subsidiary—a move Nissan's execs weren’t too keen on.

• Instead of cozying up with Honda, Nissan is now exploring other options, including a potential rekindling with Foxconn, which had previously shown interest.

Why Does This Matter?

• Nissan’s sales are struggling, and North America is its lifeline.

• Walking away from Honda is a risky move, considering Nissan’s shaky finances—94% net income drop in the first half of 2024 and a looming 9,000 job cuts.

• If Nissan can’t find a new partner soon, it could be staring down the barrel of another financial rescue (Renault déjà vu, anyone?).

So Who’s Nissan Flirting With?

• Foxconn: The iPhone manufacturer-turned-EV hopeful had previously eyed a stake in Nissan but put those plans on ice when Honda entered the picture. Now? Foxconn might be back in the mix.

• U.S.-based tech firms: Nissan is reportedly hunting for a high-tech partner, possibly to help with electrification and automation.

Meanwhile, in the Showroom…

While Nissan plays the corporate dating game, it’s also trying to woo dealers with a stair-step incentive plan to boost U.S. sales. Here’s the deal:

• Dealers can earn up to $1,000 per vehicle sold, depending on how well they hit monthly targets.

• 90% to goal? Get $250 per vehicle.

• 100% to goal? Get $500 per vehicle.

• 110% to goal? Score the full $1,000 per car.

Nissan dealer Scott Smith summed it up: “It allows us to do what Nissan dealers do best — make deals happen in the showroom.”

But not everyone is thrilled. The National Automobile Dealers Association has long criticized these volume-based incentive programs, arguing they force dealers to sell cars at a loss just to hit their numbers. One anonymous Nissan retailer put it bluntly: “For $1,000 on every car, bad habits will return… The story does not end well.”

Ok, So…

Nissan is rolling the dice on multiple fronts: ditching Honda, searching for a new partner, and doubling down on sales incentives. The automaker is banking on these moves to keep it afloat, but whether they’ll lead to a comeback or another rescue mission remains to be seen.

Expect more updates by mid-February when Nissan formally announces its breakup with Honda. Until then, we’ll be watching to see if Nissan lands a new partner—or if it’s just rebounding with Foxconn for old times’ sake.

Sources:

• Autonews “Nissan launches expansive stair-step incentive plan to revive U.S. market share”

• Motor1 “Nissan Wants to Replace Honda With a Different Partner: Report”

• Reuters “Nissan open to new partners, sources say, including Foxconn”

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