Dec. 24, 2025 | Automaker Year-In-Review: Nissan's year of turbulence
About this episode
Nissan faced significant challenges in 2025, recording its worst annual loss in 25 years and struggling with a failed merger attempt with Honda. The episode features insights from automotive experts discussing Nissan's austerity measures, including job cuts and plant closures, as well as the controversial dealer incentive program. The conversation highlights the cultural and strategic misalignments that contributed to the merger's collapse and examines Nissan's efforts to revitalize its product lineup and market share in North America. The episode also touches on the perception issues surrounding the Nissan brand.
Daily Drive's year-end series continues with a deep dive into Nissan's challenging 2025. Automotive News Atlanta Bureau Chief Urvaksh Karkaria and Toyota reporter Larry P. Vellequette examine the long list of struggles that plagued the Japanese automaker this year, plus its recent decision to overhaul its controversial dealer stair-step incentive program.
Toyota
"Welcome to Daily Drive… tomorrow on the show, we’ll talk all about Toyota."
Toyota makes cars that many people use every day. They’re famous for being dependable and not breaking down often.
Toyota is a Japanese automotive manufacturer known for reliable, fuel‑efficient vehicles such as the Corolla and Camry.
Subaru
"Toyota and Subaru reporter, Larry Velliquette."
Subaru makes cars that can handle bad weather because they drive on all four wheels. They’re popular in places with snow.
Subaru is a Japanese automaker best known for its all‑wheel drive vehicles like the Outback and Forester.
Nissan
"Our automotive news… Nissan had its worst loss in 25 years. It launched a revival plan and then merger talks with Honda Collapse."
Nissan makes a variety of cars, from small sedans to SUVs and electric cars. They’re one of the big car makers in Japan.
Nissan is a Japanese automaker that produces models like the Altima, Rogue, and Leaf electric vehicle.
Honda
"late last year, they were in talks… merge or do some sort of long term deal with Honda. And that fell through."
Honda makes cars that many people drive. They’re known for good fuel economy and reliable engines.
Honda is a Japanese automaker known for cars like the Civic and Accord, as well as motorcycles.
hybrid boom
"They miss the hybrid boom that Toyota absolutely leveraged to success. But they're finally bringing their, their wave of hybrids."
A 'hybrid boom' means a lot of people started buying cars that can run on both gas and electricity, making them more popular.
The rapid increase in popularity and production of hybrid vehicles—cars that use both gasoline and electric power—during the 2010s.
acquisition
"Can they bring these products to market on time? And can they bring it competitively? And ultimately, that will decide whether, you know, these guys have a future or whether, you know, they get eventually acquired by some other company."
An acquisition is when one company buys another to grow bigger or get new products.
The purchase of one company by another, often used as a strategy to expand market reach or eliminate competition.
R&D
"I think they're fundamentally the two automakers, especially on their R&D and manufacturing departments or sides, they come to manufacturing in R&D from two different schools of thought almost diametrically opposite."
R&D is the part of a company that works on new ideas and better ways to make cars.
Research and Development—activities focused on creating new technologies, improving existing products, and innovating future designs.
manufacturing departments
"I think they're fundamentally the two automakers, especially on their R&D and manufacturing departments or sides..."
Manufacturing departments are where the cars are built and put together.
The part of a company responsible for the actual production and assembly of vehicles.
cultural friction
"So there was definitely a cultural component to it just because they were both Japanese companies doesn't mean that they would get along."
Cultural friction means the people from two companies have different ways of working, which can cause arguments and slow progress.
Differences in corporate culture and working styles that create tension between organizations, especially in mergers or joint ventures.
e-power hybrid technology
"Nissan had invested billions in its e‑power hybrid technology, which is a different kinds of series hybrid"
e‑Power is a type of hybrid where the car mainly runs on electric power, and a small gasoline engine charges the battery.
e‑Power is Nissan’s series hybrid system where a small gasoline engine charges an electric motor that drives the wheels, offering efficient performance.
series hybrid
"which is a different kinds of series hybrid"
In a series hybrid, the gasoline engine only charges the battery; the wheels are turned by an electric motor.
A series hybrid uses a gasoline engine solely to generate electricity for an electric motor that drives the wheels, with no mechanical link between them.
Daimler
"That's Stellantis, all or Stellantis, FCA before that, you know, Daimler, Chrysler and Chrysler."
Daimler is the company that makes Mercedes-Benz cars. It was once part of FCA.
Daimler is the parent company of Mercedes-Benz and was part of the original FCA group before restructuring. It has a long history in luxury vehicles.
Stellantis
"That's Stellantis, all or Stellantis, FCA before that, you know, Daimler, Chrysler and Chrysler."
Stellantis is a big company that makes many different cars. It was created when two large car groups joined together.
Stellantis is the global automotive conglomerate formed from the merger of Fiat Chrysler Automobiles (FCA) and PSA Group. It owns brands like Jeep, Ram, Peugeot, Citroën, and others.
FCA
"That's Stellantis, all or Stellantis, FCA before that, you know, Daimler, Chrysler and Chrysler."
FCA was a company that made cars like Jeep and Dodge before it became part of Stellantis.
FCA stands for Fiat Chrysler Automobiles, the former name of Stellantis before the merger. It included brands like Jeep, Dodge, and Ram.
Chrysler
"That's Stellantis, all or Stellantis, FCA before that, you know, Daimler, Chrysler and Chrysler."
Chrysler makes cars like the 300 and trucks. It was part of FCA before becoming Stellantis.
Chrysler is an American automaker known for models like the Chrysler 300 and Dodge Ram. It was a key brand in FCA before the Stellantis merger.
perception problem
"I think Nissan's biggest problem is a perception problem. The customer still thinks of Nissan as a discount brand."
It means people think the brand is bad or low-quality, which can make them less likely to buy it.
A perception problem is a negative image or belief that consumers hold about a brand, often affecting sales regardless of product quality.
CVT
"And a lot of the problem is the CVT issue that they had years ago, which apparently has been resolved."
A CVT is a special kind of automatic transmission that can change gears smoothly without the usual gear shifts you feel in regular cars.
A continuously variable transmission (CVT) is a type of automatic gearbox that uses a belt and pulleys to provide seamless gear ratios, aiming for smooth acceleration.
Infinity
"[691.2s] I agree. And then I've asked people, I've asked top executives, why is Infinity still around?"
Infinity is a brand of cars made by Nissan that are meant to be fancy and comfortable, like a luxury version of regular Nissan vehicles.
Infinity is the luxury vehicle division of Nissan, offering premium SUVs and sedans that compete with other high-end brands.
QX 80
"[721.2s] So like, for example, you know, they, like one QX 80, you know, would deliver enough profit."
The QX80 is a big, fancy SUV made by Infiniti that can seat many people and has a strong engine.
The Infiniti QX80 is a large, full‑size luxury SUV that was produced from 2007 to 2016, known for its spacious interior and powerful V8 engine.
consumer loyalty
"But is there a certain loyalty that consumers have?"
When people like a brand, they keep buying its cars instead of switching to another maker.
Consumer loyalty refers to the tendency of buyers to repeatedly purchase from a particular brand due to trust, satisfaction, or perceived value.
retail strategies
"You can get the latest news on retail strategies, manufacturing"
Retail strategies are the plans car makers use to sell cars, like setting prices and offering special deals.
Retail strategies refer to the approaches manufacturers and dealers use to sell vehicles, including pricing tactics, promotions, and channel management.
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