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Japan’s pride, Nissan, is on a path of decline. In the first half of this year alone, it posted losses exceeding 2 trillion KRW and launched sweeping restructuring measures, including cutting 15 percent of its total workforce. Nissan’s rise and fall is not merely a matter of weak sales. Although it introduced the world’s first mass-produced electric vehicle, it hesitated to develop follow-up models due to concerns over technological capability and profitability. It later attempted a full-scale shift toward electric vehicles and boldly halted investment in hybrid vehicles, but as the electric vehicle market entered a chasm phase, demand for hybrids instead expanded, causing the company to miss the market opportunity. A strategy to cut costs by sourcing from global parts suppliers backfired by eroding trust with domestic Japanese suppliers, leaving Nissan unable to secure high-quality components. It also attempted to explore alliances with Japanese automakers such as Toyota and Nissan, but reluctance to make upfront investments and a stance focused on protecting internal organizations led it to miss the critical timing for decision-making.

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As 2025 draws to a close, the global automotive industry’s report card has clearly split. While the electric vehicle and software defined vehicle camp, represented by Tesla and BYD, has seized control of market standards, the fortunes of traditional automakers have diverged sharply. Among them, the most painful collapse has undoubtedly been that of Japan’s pride, Nissan.

Nissan once stood at the pinnacle of engineering under the slogan “Technology Nissan,” but large-scale restructuring that began in the second half of 2024 and a performance shock in 2025 have brought it to a point where independent survival is effectively uncertain. However, Nissan’s crisis cannot be seen simply as a case of poor performance. It has become a textbook example of how flawed managerial decision-making, the absence of leadership, and an organizational culture trapped in past success formulas can bring down a giant corporation. By diagnosing the grim reality Nissan faces in 2025 and tracing the roots of the crisis from a management decision-making perspective, this analysis seeks to offer implications for Korean automotive and manufacturing companies that stand at a turning point from fast followers to first movers.


Nissan’s Past and Present a Giant at the Edge of a Cliff

As of November 2025, the situation facing Nissan, burdened by accumulated risks. Its market share in key regions has declined, profitability has deteriorated, and assessments suggest that even its future competitiveness is weakening. After recording a net loss of about 6.3 trillion KRW in fiscal year 2024, Nissan launched sweeping restructuring measures. Its global production footprint was consolidated from 17 plants to 10, and plans are under way to cut about 20,000 jobs, roughly 15 percent of its total workforce.

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