Scotty Kilmer joins those predicting Nissan's Bankrupcy

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Scotty Kilmer joins those predicting Nissan's Bankrupcy


Nissan's impending bankrupcy seems to be getting more and more attention these days, partly from ex-CEO Carlos Ghosn himself, who recently escaped from the custody of Japanese authorities (Ghosn predicted bankrupcy in 2-3 years). Now, Scotty is adding his $.02 to it, although this video probably won't surprise anyone on LE.

 

mmcartalk

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Its his usual clickbait. He's just rehashing the industry headlines, since it supports his narrative of Nissan and Renault's effect on their quality since the two merged.


Most of us probably don't need his videos to tell us what happened to the nice Nissan products of the 1990s, after the merger with Renault.....we've seen for ourselves. Mike (mikeavelli) and I, years ago, used to discuss that Nissan cost-cutting at length. He's gone somewhat beyond that, though, in this video.....actually predicting their bankruptcy.
 
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Most of us probably don't need his videos to tell us what happened to the nice Nissan products of the 1990s, after the merger with Renault.....we've seen for ourselves. Mike (mikeavelli) and I, years ago, used to discuss that Nissan cost-cutting at length. He's gone somewhat beyond that, though, in this video.....actually predicting their bankruptcy.
Well, this isn't the first video Uncle Scotty said about it (I see a vid back from November), even Ghosn made a statement about BK back in January.

It would be a predicament for the Japanese government, because no one wants that because supply chains and existing infrastructures would affect a lot of other manufacturers. Who knows if they would do what our government did and stepped in to help Chrysler and GM.
 

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Well, this isn't the first video Uncle Scotty said about it (I see a vid back from November), even Ghosn made a statement about BK back in January.

It would be a predicament for the Japanese government, because no one wants that because supply chains and existing infrastructures would affect a lot of other manufacturers. Who knows if they would do what our government did and stepped in to help Chrysler and GM.


Why would the Japanese Government have to bail them out, if it came to that? After all, even as a Japanese company, they are owned by Renault...a French corporation. Wouldn't the bailout have to come from Paris?
 

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I value reliability and repairability concerns that Scotty gives, but everything else is like listening to a snake oil sales pitch


Not only that, but he often changes his mind back and forth about certain vehicles or companies. Nissan's current financial troubles, however, even with Renault-ownership, do seem to be more fact than fiction.
 

suxeL

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Not only that, but he often changes his mind back and forth about certain vehicles or companies. Nissan's current financial troubles, however, even with Renault-ownership, do seem to be more fact than fiction.

Heres my snake oil pitch...

Nissan is ready to gain independence from outside influence such as Renault and drill down on what they know has worked for them in the past... I woudnt be surprised if that alliance comes to an end thanks to a third party
 
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Heres my snake oil pitch...

Nissan is ready to gain independence from outside influence such as Renault and drill down on what they know has worked for them in the past... I woudnt be surprised if that alliance comes to an end thanks to a third party
Bankruptcy might be the way out, who knows. Late 90's Nissans were as good as the late 60/70s Datsuns Zs and vintage stuff that actually were fun to drive. The GT-R is also old now.
 

suxeL

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Bankruptcy might be the way out, who knows. Late 90's Nissans were as good as the late 60/70s Datsuns Zs and vintage stuff that actually were fun to drive. The GT-R is also old now.

I`m not a slick accountant/strategist so i dont know how they can use bankruptcy as a way out of that alliance (would love to hear some insight from others on the forums).
 
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Why would the Japanese Government have to bail them out, if it came to that? After all, even as a Japanese company, they are owned by Renault...a French corporation. Wouldn't the bailout have to come from Paris?
That's a complicated issue on the corporate end. If Chrysler were to fail now, would Italy or the US be goodwilling the cash?
 

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If Nissan has a saviour in bankruptcy, I highly doubt it will be Renault. Renault itself is not doing well. Renault also does not own Nissan outright -- the structure set up in 1999 that saved Nissan was an alliance, rather than an outright merger or acquisition. It is an unequal alliance, with Renault owning 43.4% of Nissan's voting shares (enough, under Japanese law for Renault to take control of the board of directors) but Nissan owning only 15% of Renault's non-voting shares. This unequal alliance is no doubt why Nissan is unhappy with it and wants it to be restructured.

If Nissan goes to Renault looking for more money, I believe that Renault will try to take (back) more control, like naming Nissan's CEO, which Nissan did since getting rid of Carlos Ghosn as CEO; but that is not what Nissan wants. Nissan, understandably, wants more control in the alliance or control of itself.
 

mmcartalk

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That's a complicated issue on the corporate end. If Chrysler were to fail now, would Italy or the US be goodwilling the cash?

Yes, that's a good question. It's up to you, since you brought it up, but that might (?) be worth a separate new Garage thread.
 

LexsCTJill

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I don’t think the world can support Toyota, Nissan and Honda in the current form. Not just from the pandemic, but from the way the industry is changing. Not just from EVs either. Toyota has added partnerships with Mazda and Subaru as those two brands probably won’t be able to survive in their current state as the industry changes. Nissan needs to downsize to come out of all this. Note: didn’t watch the video by Kilmer.
 
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I'm anxiously awaiting that May 28 press event to see what the heck Nissan comes up with to try to save itself.
They have to figure out their corporate infrastructure first, because that seems the biggest mess. The second part is product, where the management was so screwed up, they are still selling a GT-R and Z from over a decade ago, and the seemingly most successful product they sold was the cheapest car in America (and Canada). I know they decided to kill the Datsun brand again, they need those products of the 80s and 90s that brought buyers to the brand.
 

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Nissan is a trainwreck. Their products just have no profitability. They have no money to invest in mass BEV lines and developing autonomous driving tech.
 

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I`m not a slick accountant/strategist so i dont know how they can use bankruptcy as a way out of that alliance (would love to hear some insight from others on the forums).

Not US based but I'd imagine bankruptcy would simply provide legal cover while they restructure the company. It would probably include some haircut on the buyout of Renault, and use it to repatriate Nissan for cents on the dollar at the cost of goodwill.