You might have come across headlines or Reddit posts questioning: “Is Nissan going out of business in 2026?” The simple answer is no, Nissan is not shutting down, but the automaker is indeed navigating one of the toughest financial storms in its recent history.
The company is currently engaged in a large-scale restructuring effort to recover from steep losses and sluggish global sales.
Here’s what you need to know:
- Nissan has implemented emergency measures, including 9,000 job cuts.
- A 20% reduction in production capacity is underway.
- Despite challenges, experts believe a full collapse is unlikely.
- A major turnaround plan is in motion with new leadership at the helm.
Let’s separate the rumours from reality and take a closer look at Nissan’s current position and future prospects.
Why Are People Asking if Nissan Is Going Out of Business?
The concern around Nissan’s future has grown over the past year due to a perfect storm of financial challenges, strategic missteps, and market shifts.
From plummeting quarterly profits to swelling inventories and changing leadership, it’s easy to understand why some might believe the company is on the brink of collapse.
A particularly viral Reddit post contributed to the confusion, stating:
“According to Nissan’s CFO, they’re about to go out of business next year… But on paper, they are still profitable. It’s strange.” – Reddit user on r/cars
Such commentary, while not entirely baseless, often lacks critical context. Statements from executives indicating a 12–14 month window to “turn things around” have been misconstrued as signs of an imminent shutdown.
However, this doesn’t mean Nissan is thriving. The company is in what CEO Makoto Uchida calls “emergency mode,” as it faces the sharpest downturn since the Ghosn era. Still, restructuring, not bankruptcy, is the current trajectory.
What’s Really Going on with Nissan’s Financial Health?
Nissan’s financial woes became glaringly apparent by the end of 2024. From falling sales to operational inefficiencies, the company found itself under pressure to cut costs and recover fast.
Here’s a snapshot of the financials:
Re:Nissan’s Financial Comparison – 2024 vs 2025
| Financial Indicator | 2024 | 2025 (Projected) | Change |
| Operating Profit | $4.1 Billion | $1.05 Billion | ▼ 74% |
| Global Sales (Units) | 3.37 Million | 3.35 Million (target) | ▼ ~0.5% |
| Stake in Mitsubishi (Sold) | 34% | <25% | ▼ Stakeholding |
| Production Lines (Global) | 25 | Targeting 20% Reduction | ▼ Efficiency |
| Inventory (Global) | 250,000 (early 2024) | 640,000 (late 2025) | ▲ 156% |
The increased inventory and sales decline highlight a mismatch between production output and market demand. Coupled with the unsuccessful merger talks with Honda, Nissan dropped out of the top 10 global automakers by early 2025.
“We cannot deny the fact that our sales plan was overstretched,” admitted CEO Uchida during a press briefing.
This honest assessment led to the launch of urgent measures, aiming to save up to $3 billion.
What Emergency Measures Is Nissan Taking to Survive?
Nissan has been forced into urgent action as financial pressure and market challenges intensified across the global automotive industry.
Immediate Cost-Cutting and Damage Control
Since late 2024, Nissan has moved into full damage-control mode, rolling out aggressive measures to stabilise cash flow and reduce overheads.
These short-term actions have been disruptive but are designed to buy time and restore financial discipline.
Key emergency steps include:
- Over 9,000 global job cuts to streamline operations
- 20% reduction in production capacity, including plant closures in Mexico and Japan
- Sale of a significant stake in Mitsubishi Motors to generate immediate liquidity
- Suspension or cancellation of selected EV projects to refocus spending
- Temporary executive pay cuts, including a symbolic reduction by the CEO
Leadership Reset and Strategic Direction
A leadership shake-up has followed, with Ivan Espinosa stepping in as CEO. The aim is to restore confidence internally while pushing a sharper, performance-led strategy focused on profitability rather than volume alone.
The 7-Point Turnaround Strategy
Nissan’s recovery plan centres on:
- Cutting variable and fixed costs
- Restructuring manufacturing and reducing workforce size
- Refocusing product development on hybrids and SUVs
- Redefining market priorities and strengthening partnerships, including talks with Honda and Foxconn
Together, these measures aim to secure long-term sustainability after short-term pain.
Is Nissan Still Selling Cars? What’s the Sales Performance?
Yes, despite speculation, Nissan is very much active in the global market. While certain product lines are seeing production cuts, others are experiencing renewed demand, especially in the affordable and hybrid categories.
Nissan’s U.S. and UK operations have seen mixed results, with certain models performing far better than expected in 2025.
“The Kicks is arguably the best subcompact SUV in its class. Full stop,” wrote Jeff Perez from Motor1. This sentiment reflects the resurgence of interest in budget-friendly models.
Below are some of Nissan’s top-performing vehicles in 2025:
| Model | 2025 YTD Sales | 2024 YTD Sales | % Increase |
| Nissan Kicks | 76,638 | 52,144 | +47% |
| Pathfinder | 72,285 | 58,896 | +22.7% |
| Versa | 41,463 | 29,302 | +41.5% |
| Murano | 32,400 | 14,437 | +124.4% |
| Nissan Z | 4,822 | 2,175 | +121.7% |
In the UK, the Qashqai and Juke remain popular, continuing to hold top positions in the compact SUV market.
What Is the Re:Nissan Plan and Can It Work?
Appointed in April 2025, Ivan Espinosa wasted no time in rolling out the Re: Nissan plan, a bold and targeted approach to turnaround. It focuses on sustainable growth, efficient production, and modernizing the vehicle line-up.
Notable moves include:
- Cancelling two electric sedan projects deemed unviable in a volatile EV market.
- Prioritizing flexible platform designs to accommodate petrol, hybrid, and electric variants.
- Introducing the Nissan One sales programme, rewarding dealerships for volume sales, which has improved U.S. sales by 2.2%.
“There’s cash in the bank and we’re investing in new products. It’s full-speed ahead,” said Vinay Shahani, Nissan’s U.S. sales boss, in a recent interview.
The plan is already seeing momentum, especially in the SUV and compact segments. More significantly, it’s helping Nissan align its production capacity with actual demand.
Is Nissan’s EV and Hybrid Strategy Too Late or Just in Time?
Nissan’s slow start in electrification was long viewed as a strategic mistake, especially given its early leadership with electric vehicles. However, as global demand for EVs cools and governments rethink incentives, that delay may now work in Nissan’s favour.
With fewer large-scale EV projects locked in, Nissan has greater flexibility to adjust its roadmap. The brand is increasingly leaning on hybrids, particularly its e-Power system, which has performed strongly in Japan and is now being prepared for Western markets through models like the Rogue hybrid and future plug-in variants.
Nissan’s current approach prioritizes balance over speed. The Nissan Leaf continues to anchor its affordable EV offering, while hybrid expansion is supported through its partnership with Mitsubishi Motors. At the same time, Nissan is deliberately pausing advanced EV development beyond 2026 to limit losses and protect cash flow.
Can Nissan Still Compete in the UK and Global Market?
Absolutely. While Nissan has exited the top 10 automakers globally, the brand still has strongholds, especially in the UK, U.S., and Japan. Vehicles like the Qashqai continue to enjoy strong brand loyalty.
Additionally, Nissan benefits from:
- A global manufacturing footprint.
- Over 1,300 dealerships in the U.S. alone.
- A well-established service infrastructure.
- Brand recognition built on decades of iconic models like the Z and GT-R.
“An $11 billion company with a global footprint doesn’t just disappear,” said Brian Gordon from the Dave Cantin Group.
Nissan is even exploring new investor options and potential re-engagement with Honda.
According to S&P Global, it is “expected to survive in one form or another.”
So, Is Nissan Really Going Out of Business in 2026?
Let’s be clear: Nissan is not going out of business in 2026. Despite ongoing speculation and a difficult financial backdrop, the company is not facing imminent collapse. Instead, Nissan is navigating a high-stakes restructuring aimed at stabilising operations and restoring long-term profitability.
Industry analysts suggest the road ahead will be challenging, but far from terminal. Nissan’s global manufacturing footprint, established dealer network, and long history of resilience provide a strong foundation for recovery.
As Brian Gordon put it:
“This is not anywhere near the end of the line for Nissan, but perhaps the beginning of a new chapter.”
In short, Nissan is actively executing a recovery strategy, retains consumer demand in key models, and is widely viewed as financially viable. While conditions remain fluid, 2026 looks set to be a year of transition, not termination.
What Should You Know as a Nissan Owner or Buyer in 2026?
If you currently drive a Nissan or are considering purchasing one this year, there’s no reason to panic. Despite corporate-level changes, customer experience and product reliability remain stable and supported.
Whether you’re buying new or maintaining an existing vehicle, here’s what you need to know:
- Dealerships and service centres are fully operational across the UK and globally, ensuring parts and support are readily available.
- Manufacturer warranties and after-sales support remain unaffected by the restructuring efforts.
- Attractive incentives and competitive pricing make 2026 an excellent time to purchase or lease a Nissan, especially in the compact SUV and hybrid segments.
- New models and hybrid variants are on the horizon, including updates to popular vehicles like the Qashqai, Rogue, and Leaf.
With a product roadmap that includes more efficient models, hybrid technology, and possible returns of beloved performance vehicles, Nissan remains a viable and trustworthy choice for today’s automotive consumer.
Conclusion
Nissan is not going out of business in 2026, but it is at a defining moment. Through aggressive restructuring, cost control, and a renewed focus on profitable models and hybrids, the company is fighting to stabilise its future.
While challenges remain, Nissan’s scale, leadership changes, and recovery strategy suggest survival, and potential recovery, rather than collapse.
Frequently Asked Questions
Will Nissan still honour warranties and services in the UK?
Yes. Nissan’s dealer and service networks remain fully operational, and existing warranties are being honoured as usual.
Is it safe to buy a Nissan vehicle in 2026?
Absolutely. With the new strategy in place and strong after-sales infrastructure, buying a Nissan remains a reliable choice.
Are Nissan dealerships closing down?
No mass closures have been announced. Production may scale back, but the dealership network is intact.
What happened to the Nissan-Honda merger?
The proposed merger failed but may be revisited in the future. Talks remain ongoing with other partners, including Foxconn.
Why did Nissan suffer such big lease losses?
Nissan made significant losses from buying back leased vehicles at high cost due to a mismatch in residual values and actual market prices.
How does the Re:Nissan plan affect customers?
You may notice model changes and updated hybrid options, but the core customer services remain unaffected.
What’s the future of Nissan’s electric and hybrid vehicles?
Nissan is focusing on expanding hybrids in the short term and will revisit advanced EVs beyond FY2026.
