An expert who shares daily car-related content to his TikTok page is going viral after explaining why Nissan is in hot water.
Brian Mello (@realbrianmello) noted that Nissan dealerships across the country are dealing with a steep decline in profitability. He said this was a big problem for both dealerships—and the manufacturer.
“These new numbers are ugly and the problem is worldwide,” Mello said. As of Thursday, his video explaining Nissan’s plummeting sales had amassed more than 380,200 views.
What’s going on with Nissan?
Nissan recently reported its sales numbers and, according to Bloomberg, showed a 5.5% decrease in worldwide sales in August. This marked Nissan’s fifth consecutive monthly decline, the article stated. The manufacturer’s biggest problem areas are the U.S. and China, “two markets that Nissan relies on for roughly half of its global volume,” Bloomberg said.
As a result, Mello said, “Nissan inventory is just piling up on dealership lots, with an average day supply just over 80.” This compared to other companies, including General Motors (GM) and Honda, which sit below 60 and 40, respectively, according to Bloomberg.
In addition, some car lots are packed with 2023 Nissan models. Mello said this is finding, in particular, was “wild.”
In an attempt to turn things around, Nissan is reportedly allowing dealers to sell inventory for 10-15% lower than invoice pricing, according to Car Buzz. While this might save buyers a few bucks, dealerships are quite unhappy with this proposal. One dealer, who spoke to Automotive News on the condition of anonymity, put it plainly. “Nissan is saying, ‘We can’t afford to be in the market, so you need to be.’ The responsibility has been moved from the factory to us.” Other strategies to bring in new buyers include ramping up advertising, Bloomberg reported.
Mello, however, said that these gambits weren’t doing much for Nissan.
“Neither one seems to really be moving the needle for them,” he said. “It’s like the demand for the cars is just completely gone.”
Mello suggested that Nissan’s lack of a hybrid car option likely contributes to its problems. But other reports show that issues such as selling outdated models are imperiling the manufacturer, too. “Nissan’s going to need to make some serious moves and they’re going to need to make them yesterday,” Mello said. He ended his video by asking viewers what they made of the manufacturer’s dwindling sales numbers.
@realbrianmello Things Are Bad At Nissan! | #nissan #nismo #cartok #cars ♬ original sound – Brian Mello
Workers are feeling the effects
According to CBT News, Nissan reduced its number of salaried workers in the U.S. amid its sales decline. The employees who felt the effects of this most were white-collar ones; however, they were offered buyout packages. As of August, the cuts did not affect hourly production workers.
This isn’t the first time Nissan has had to cut its workforce. CBT News noted that this year’s move follows similar buyout packages offered in both 2019 and 2020. Those were then followed by factory layoffs, travel budget cuts, and unpaid furloughs.
Viewers offer suggestions for why Nissan is struggling
In the comments section, a number of viewers suggested that the manufacturer’s reliance on the CVT transmission would continue to be an issue for the manufacturer. Mechanics, too, have said to avoid CVTs because they are less reliable.
“They are junk, they are literally junk,” one mechanic said in a recent story covered by the Daily Dot. “They fall apart.” In addition, the mechanic said that CVTs aren’t easily fixable.
In the comments under Mello’s video, viewers agreed that these engines pose a problem.
“Every time I think about buying [a Nissan] I remember they have a CVT,” one man wrote.
“The CVT transmission failures have blemished and tarnished their image and reliability,” another person said of Nissan. “I’ve always bought Nissans in the past and currently have an Infinity. I wouldn’t buy a CVT.”
“It’s the CVT transmission that has to go,” a third viewer echoed.
Others, however, said that Nissan has been struggling for quite some time. Because of this, many refused to ever purchase one.
“Nissan has been terrible for years and people are finally realizing that,” one viewer said.
“I got a Nissan once,” another wrote. “That was my last.”
“Personally, I will never buy one ever again,” a third person commented. “And never recommend anyone to buy one.”
The Daily Dot has reached out to Mello via TikTok comment and to Nissan by email.
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