Nissan has been through one of the most difficult periods in its recent history. Falling profitability, intense competition in China and the United States, changing demand for electric and hybrid cars and an ageing product line all contributed to mounting pressure on the Japanese manufacturer.
Since the original version of this article was published, Nissan has made major changes. Makoto Uchida stepped down as CEO in 2025 and was replaced by Ivan Espinosa, while the company introduced a wide-ranging recovery programme known as Re:Nissan.
The plan includes reducing costs, restructuring manufacturing operations and accelerating the development of new vehicles. Nissan’s financial position remains challenging, but its latest results show why describing the company as having “collapsed” would now be misleading.
So what went wrong at Nissan, what is the company doing about it, and where does the manufacturer stand in 2026?
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The Impact of Chinese EV Competition
China has been one of Nissan’s biggest challenges. The rapid growth of domestic manufacturers has transformed the market, with Chinese brands introducing competitively priced electric and plug-in hybrid vehicles at considerable speed.
Nissan has acknowledged that changes in customer demand developed faster than it anticipated, particularly the popularity of plug-in hybrids and range-extender technologies in China.
Competition has not been the only cause of Nissan’s difficulties, however. Its problems have also included high operating costs, an ageing product line in some markets and the need to make its manufacturing operations more efficient.
Nissan is now responding with new models, updated electric vehicle technology and a broader range of electrified powertrains as part of its recovery strategy.
If you’d like to understand the different types of electrified cars available, our guide to hybrid cars explains the differences between mild hybrids, full hybrids and plug-in hybrids.
Re:Nissan, Nissan’s Recovery Plan
Nissan responded to its financial difficulties with a major restructuring programme called Re:Nissan, designed to reduce costs, simplify the business and restore profitability.
The plan involves restructuring Nissan’s manufacturing footprint, reducing its workforce, cutting fixed and variable costs and concentrating investment on markets and vehicles where the company believes it can compete more effectively.
Product development is also central to the recovery. Nissan is working to shorten vehicle development times and introduce new and updated models across electric, hybrid and combustion-engine markets.
By 2026, the story is therefore no longer simply one of falling sales and emergency cost-cutting. Nissan remains in a difficult restructuring period, but the focus has shifted towards whether Re:Nissan can create a smaller, more efficient and sustainable car manufacturer.
What Went Wrong?
Nissan’s difficulties cannot be traced to one single decision. Instead, several problems developed at the same time.
The company faced increasingly strong competition in China, pressure on profitability in the United States and a product range that needed refreshing in several important markets. Nissan has also acknowledged that its costs and manufacturing structure needed significant reform.
At the same time, the global car industry was changing rapidly. Electric vehicles, hybrids and new Chinese manufacturers altered the competitive landscape, while customers increasingly expected greater choice in electrified powertrains.
Nissan therefore entered its restructuring period needing to tackle costs while also investing in the new vehicles and technologies
required to remain competitive. That difficult balancing act is at the heart of the Re:Nissan recovery plan.
What’s Next for Nissan?
Nissan’s immediate priority is to make its Re:Nissan recovery plan work while rebuilding its product range in key markets.
The company is introducing new and updated models across electric, hybrid and combustion-engine segments, while also trying to reduce the cost and complexity of developing future vehicles. Partnerships and shared technology are expected to play an important role as Nissan looks for ways to compete without carrying every development cost alone.
There are some early signs of progress. Nissan returned to an operating profit in the first quarter of its 2026 financial year, although the company continues to face significant restructuring costs and wider financial challenges.
The next stage will depend on whether Nissan can maintain that progress, successfully launch its new vehicles and turn its restructuring measures into sustainable profitability.
For a broader look at how established manufacturers are adapting their model ranges, read our guide to how government EV sales targets are changing the car market.
A Turning Point for Nissan
Nissan is still going through a major transformation, and it is too early to know how successful the Re:Nissan recovery plan will ultimately be.
What is clear is that the situation has moved on considerably from the crisis described when this article was first published. Nissan has changed its leadership, begun restructuring its operations and is refreshing its vehicle range as it attempts to restore sustainable profitability.
For car owners, Nissan’s difficulties do not mean existing Nissan vehicles suddenly lose their usefulness or value. Used-car values continue to depend on factors such as the individual model, age, mileage, condition, specification, service history and wider market demand.
If you’re considering selling your Nissan — or any other car — use jamjar’s free online car valuation tool to find out what your car could be worth today.