Nissan Motor Co., Ltd.

Nissan has canceled its plan to establish Nissan Bank U.S. in Salt Lake City, citing cost reductions and long-term financial health, according to Automotive News. The automaker's finance arm, Nissan Motor Acceptance Co., had filed with the FDIC and Utah regulators in June 2025 for an industrial loan company charter that would have allowed it to fund dealer loans with federally insured deposits. The decision leaves Ford, General Motors, and Stellantis as the major automakers moving forward with industrial bank charters, with Ford Credit Bank and GM Financial Bank receiving conditional FDIC approval in January 2026 and Stellantis Bank USA clearing regulators in May 2026. Nissan, whose credit rating was cut to BB- by S&P Global Ratings in November, is mid-way through its Re:Nissan restructuring targeting 20,000 job cuts and a reduction from 17 assembly plants to 10, and posted a net loss of 533.1 billion yen in the fiscal year ended March. The company reported a first-quarter operating profit of 77.9 billion yen and net income of 3.8 billion yen, but CEO Ivan Espinosa said the environment remains challenging, particularly in China and the Middle East.

Automakers including Stellantis and Volkswagen are turning to new lubricant blends as motor oil shortages worsen due to the Iran war, the Financial Times reported. Supply chains for high-quality Group III base oils were severely disrupted after Iran struck Shell's gas-to-liquids plant in Qatar in March, and prices have nearly tripled from prewar levels to about $4,000 per ton in Europe and the U.S. Stellantis said it evaluated reformulated lubricants and secured alternative products that meet industry standards, while Volkswagen said it has secured supplies for now and is evaluating additional sourcing options. Toyota and Suzuki have also secured alternative supplies, and Nissan informed dealers of reduced production capacity for most lubricant products and said it would constrain supplies of its high-quality motor oil. Holly Alfano, CEO of the Independent Lubricant Manufacturers Association, warned that alternative suppliers have limited volumes and any renewed shipping disruption, refinery outage or other supply shock could rapidly worsen the situation.

Toyota, Honda and Nissan are facing risks from the impact of the Iran conflict and a stronger yen, after having benefited from the currency's weakness in the latest quarter. Toyota and Honda raised their full-year earnings forecasts, while Nissan posted its first profit in about two years. But the intervention by the US and Japanese finance ministries through yen buying in early August, a historic move after the yen tumbled to a 40-year low beyond 163 per dollar, has sent a warning signal. Analysts at Morningstar said a stronger yen will force automakers to choose between raising prices in overseas markets, which could lead to lost market share, or allowing operating profit to be squeezed by the reduced value of overseas earnings when converted back into yen. A 1% move in the yen affects Japanese automakers' operating profit by about 2%, and could reach about 4% for some companies. Meanwhile, the ongoing conflict in the Middle East could cause supply chain disruptions and higher costs, because the Strait of Hormuz and the Red Sea are key shipping routes for imports of aluminium and petrochemicals such as naphtha. The most significant negative pressure is a surge in raw material costs that intensifies amid the conflict.

California's new MyFirstEV instant rebate program exempts automakers headquartered in the state that build only zero-emission vehicles from its $50,000 MSRP cap, effectively allowing Tesla and Lucid to qualify for the $3,500 incentive on vehicles priced well above that limit while competitors must comply. The program, announced by Governor Gavin Newsom on August 7, offers $3,500 off a new zero-emission vehicle and $1,750 off a used one at the point of sale, funded by $135.5 million from California Climate Investments' cap-and-trade revenue matched by participating automakers for a total $271 million pot. CARB's own FAQ states the program was created because the expiration of the $7,500 federal EV tax credit in September 2025 caused new ZEV registrations in California to drop 40.2% year over year in the first quarter of 2026. The price-cap exemption applies to any manufacturer headquartered in California that builds only zero-emission vehicles, which currently includes Tesla and Lucid and will include Rivian once it joins, while Hyundai, Kia, and others must stay under the $50,000 threshold. The rollout is staggered because CARB signs individual grant agreements with each automaker, who must front the discount and build point-of-sale systems, with Tesla, Hyundai, and Lucid going live first and Nissan and Volvo yet to commit to a date.

Japanese, Western, and Chinese automakers are facing sales headwinds in China's auto market. In the first half of 2026, Honda's China sales fell 34.6 percent year on year, Toyota Motor dropped 17.1 percent, and Nissan Motor declined 15 percent, with Japanese brands posting double-digit decreases. European players Volkswagen, Mercedes, and BMW saw drops of 20 to 30 percent, while US automaker General Motors slipped 6 percent. Chinese manufacturers also saw domestic sales fall below the previous year for the first time in two years, with EV leader BYD down 16 percent and Li Auto down 5 percent. A rapid expansion of production capacity for new energy vehicles, including EVs, has led to oversupply, pushing factory utilization rates well below the 80 percent breakeven level. The strain of overproduction is spilling over into exports, with so-called zero-kilometer used cars, where new vehicles are shipped overseas as used cars, now accounting for over 90 percent of used car exports, prompting authorities to question BYD and others. NIO CEO William Li expressed a sense of crisis, saying China's auto industry has entered its most brutal phase, as the state-led push to nurture the EV industry reaches a crossroads.

A 7.1-magnitude earthquake in Japan's Kyushu region has disrupted vehicle and component production at the country's leading automakers. Toyota temporarily halted production at three plants in Kyushu and one in Aichi Prefecture, while Nissan suspended operations at its two Kyushu vehicle plants and Mitsubishi Motors halted a plant in Okayama. Major supplier Aisin Corporation also idled facilities in the region. The production suspensions could result in the loss of up to 20,000 vehicles, and electronic component manufacturing including semiconductors has also been affected.

Nissan Motor Corp. reported a net profit of 3.8 billion yen for the January-March quarter, reversing a 115.8 billion yen loss a year earlier, but warned that challenges in the Middle East and China are weighing on its outlook. Quarterly sales rose 9.5% to 2.96 trillion yen, helped by cost cuts and improved performance in the U.S. and Japan. Chief Executive Ivan Espinosa said production lines were partially stalled due to the magnitude 7.1 earthquake that struck Kumamoto, southwestern Japan, last week, with the disruption expected to last until Wednesday and affect 5,000 vehicles. The company lowered its annual sales forecast to 3.15 million vehicles, down from an earlier projection of 3.3 million units, largely because of fierce competition from Chinese electric-vehicle makers. Nissan maintained its full-year profit forecast of 20 billion yen on sales of 13 trillion yen.

Chinese auto giant BYD's Japanese subsidiary has launched the mini electric vehicle "RACCO," intensifying competition in the mini EV segment. Going forward, EMT, a joint venture funded by five Japanese and Chinese companies including Chery Automobile, as well as Suzuki, plan to enter the market, bringing the total number of mini EV models to four including the Racco. In fiscal 2025, even the top-selling Nissan Sakura recorded only around 10,000 units, far below the roughly 200,000 units of Honda's N-BOX, the leader among gasoline-powered mini vehicles. BYD aims to sell 10,000 units annually, but all mini EV models are priced above 2 million yen, higher than gasoline vehicles. The national government provides subsidies of up to 580,000 yen, and when combined with local government subsidies, in some cases such as in Tokyo, the vehicles can be purchased for under 1 million yen. Hikaru Todoroki, principal at KPMG Consulting, predicts that because mini vehicle users prioritize price, fierce price competition will ensue after the subsidies end. A source at a domestic manufacturer also points out the need to compete on performance and price against the entire mini vehicle segment.

The shutdown of auto plants is dragging on following the Kumamoto earthquake. Toyota Motor, Nissan Motor, and Daihatsu Motor have extended the suspension of plant operations and production of some models from the 5th to the 7th of this month due to parts supply disruptions. The impact has spread to plants on Honshu, with no timeline given for resumption. Meanwhile, semiconductor plants concentrated in Kyushu are making progress in recovery. Renesas Electronics' Kawajiri plant will sequentially restart production from the 5th and is expected to return to pre-quake levels within the month, while Sony Group's image sensor plant is also set to resume operations in stages from the 4th.

Toyota Motor announced on the 31st that it will suspend operations at its Tahara plant in Tahara City, Aichi Prefecture, which produces luxury Lexus vehicles, from August 3 to 7 due to parts supply disruptions caused by the Kumamoto earthquake. It also extended the shutdown at three plants in Fukuoka Prefecture until the 5th, while Daihatsu Motor and Nissan Motor are also prolonging production halts at their Kyushu plants, spreading the impact further. Aisin Kyushu, a Toyota-affiliated parts supplier, has halted operations at its Kumamoto plant after it was damaged, and because it produces critical components for car doors, the disruption could affect customers beyond Toyota. The multi-tiered structure of the auto industry means it is taking time to assess the situation at smaller parts makers with no direct transactions, and Denso is also investigating the damage status of its own suppliers.

Combined global sales of eight major automakers in the first half of 2026 fell 2.3 percent year on year to 11.92 million units, with six companies posting declines. Toyota Motor saw a 2.9 percent drop, marking its first year-on-year decline for a first half in two years. In China, Honda fell 34.6 percent, Toyota dropped 17.1 percent, and Nissan Motor declined 15.0 percent, as the slump continued. Meanwhile, Suzuki achieved a record high for a first half, driven by growth in India, and Daihatsu Motor also turned positive thanks to strong sales of the new Move mini car. Overseas sales fell 3.2 percent, with seven of the eight companies recording declines.

Parts supply disruptions from the Kumamoto earthquake have forced Mitsubishi Motors to announce on the 30th that it will suspend production of some models at its Mizushima plant in Kurashiki, Okayama Prefecture, from the evening of the same day. The halt comes because Aisin Kyushu's damaged factory in Kumamoto City remains inoperable, cutting off the supply of core door components and other parts. The impact is also spreading to Daihatsu and Nissan. Toyota will keep its three plants in Fukuoka Prefecture idled through the 31st, while Nissan will partially suspend production at two plants of its manufacturing subsidiary in Fukuoka Prefecture through the 31st. Moves to halt auto production outside Kyushu are beginning to emerge.

Chinese electric vehicle giant BYD announced on the 28th that it will launch the most affordable grade of its mini EV 'Raccoon' at a price of 2,145,000 yen. After deducting the national subsidy of 150,000 yen, the effective cost comes to 1,995,000 yen. The competing mini EV 'Sakura' from Nissan Motor starts at a retail price of 2,448,600 yen, and after a subsidy of 580,000 yen, the effective cost begins at 1,868,600 yen. While the Raccoon's retail price is lower than the Sakura's, its effective cost after subsidies is higher.

Chinese automakers BYD, Chery, and Leapmotor posted triple-digit registration gains in the European Union during the first half of 2026, as battery-electric vehicle registrations across the bloc jumped 40.5% year-on-year to 1.22 million units and claimed a 20.7% market share. BYD registrations surged 168.2% to 130,743 units, Chery jumped 268.7% to 84,987 units, and Leapmotor posted a more than fivefold increase of 526.7% to 48,261 units, while SAIC Motor rose 19.1% to 127,585 units. Tesla also strengthened its position with a 75.4% rise to 124,242 units. In contrast, legacy automakers lost ground, with Ford registrations falling 20.2% to 132,780 units, Nissan down 5.3% to 106,833 units, and Renault Group declining 4.2% to 620,250 units. Overall EU new car registrations rose 5.7% year-on-year, while the combined share of petrol and diesel vehicles fell to 29.7% from 37.8% a year earlier.

Carmakers have broadly won the first round in UK diesel emissions litigation, as the High Court rejected most of the dieselgate claims against Mercedes-Benz, Ford, Nissan, Renault and Stellantis's Peugeot-Citroën-DS division. The ruling, issued by Lady Justice Cockerill after 55 hearing days, relates to claims brought by about 1.6 million owners of Euro 5 and Euro 6 diesel vehicles. The judge adopted a narrow interpretation of a defeat device, concluding that most of the around 40 devices alleged across the five manufacturers were either not shown to be defeat devices or that claimants did not prove a reduction in effectiveness. Outcomes varied: for Mercedes and Ford, none of the alleged devices were upheld; for Peugeot-Citroën-DS, a split mode device was found to be a prohibited defeat device; and for Renault and Nissan, several devices including torque cut-off systems and correction factors were found to breach regulations. The proceedings form part of a wider group litigation structure, and this judgment will influence about 800,000 related claims against other carmakers.

Vietnam's new vehicle market declined by 6% to 24,356 units in June 2026 from 25,793 units a year earlier, according to wholesale data from the Vietnam Automotive Manufacturers Association. The figures exclude VinFast, Hyundai, Mercedes-Benz, Nissan and other overseas brands. In the first six months of 2026, the market expanded by 15% to 149,761 units, driven by strong economic growth that saw GDP accelerate to 8.4% year-on-year in the second quarter. Light passenger vehicle sales rose 12% to 100,321 units year-to-date, while commercial vehicle sales increased 20% to 49,440 units. VinFast separately reported a 72% surge in domestic sales to 115,916 vehicles in the first half, and GlobalData expects total light vehicle sales in Vietnam to rise 10% to 617,000 units this year.

The first-half China new-vehicle sales figures for Japan's three major automakers are now in, and Toyota, Nissan, and Honda all fell short of the previous year's levels. Combined sales for the three companies came to 1,137,536 units, a 20 percent decline from the same period a year earlier. Toyota sold 694,700 units, down 17.1 percent; Nissan sold 237,018 units, down 15.0 percent; and Honda sold 205,818 units, down 34.7 percent. The market has cooled due to reduced tax incentives for new-energy vehicles and surging gasoline prices, and the Japanese automakers, with their heavy reliance on gasoline-powered cars, are facing a particularly tough battle.

Chinese automaker Chery has taken control of Nissan's former assembly plant in Rosslyn, South Africa, and is preparing to begin vehicle production from mid-2027 after upgrades. The acquisition includes the land, buildings, manufacturing equipment, and a nearby stamping plant, with Chery planning to invest millions of dollars in refurbishment and additional machinery. The company will retain all 692 current workers and expects the project to generate close to 3,000 direct and indirect jobs. Chery aims to make South Africa its African base for manufacturing, exports, research and development, and regional activities, with an initial production target of 15,000 vehicles in the second half of 2027 and a long-term goal of exceeding 100,000 annual sales in the country. Initial models will include the Jetour T1, Jaecoo J5, and Chery Tiggo 4 SUVs, with the Jaecoo J5 offered in both internal combustion and new energy versions.

Nissan is working to reduce costs on its Mexico-built models as 25% tariffs make parts of its US lineup harder to sell. CEO Ivan Espinosa said the company is paying close attention to vehicles hit by the duties, especially as affordability pressure in the US market could push more buyers toward lower-priced cars. The pressure is centered on Mexico-made vehicles such as the Nissan Sentra compact and Kicks crossover, which Nissan has kept in Mexico to benefit from lower labor costs. The company has said tariffs on the Kicks and Sentra cost around $2,500 to $3,000 per vehicle. Mexico-made models accounted for more than one-third of Nissan's US sales last year, including the Sentra, Kicks, Versa sedan, and Infiniti's QX50 and QX55 crossovers, though the latter three have since been discontinued. Espinosa also signaled that Nissan still sees value in building more vehicles in the US, even as the yen weakens against the dollar, and pointed to continued collaboration opportunities with Honda and potential expansion of Nissan's long-running partnership with China's Dongfeng Motor Group.