(engine accelerating) - Look, I love Nissan, but right now, it feels like they're on the path to going out of business. How did we go from the S13, to the Versa; from the R34 to the Murano convertible? (upbeat music playing) In this video, we're gonna
take a look at what Nissan did right in their past, and what they're doing wrong, now, and then, I'm gonna
take a look at some ways that could turn things around. So come with me, if you wanna survive! Problem #1: all we care
about are old Nissans. Nissan had some of the sickest, most iconic cars ever made. But over the last 20 years,
they've really dropped the ball. The quality of their
cars has gone downhill, and they've lost their core audience. And it shows in their numbers; in the beginning of 2019, they lost 99% of their operating profit, and had to lay off
nearly 13,000 employees. Which makes me wonder: how does a company, that
made so many of the cars that we all wanted and loved, fail so hard? We're gonna get into that, but first, let's look at why
we love their cars so much. (upbeat music playing) Nissan, or as they used
to be called, Datsun, has been around for over 100 years. Bur most of the coolest
cars they made were from the 1970's, 80's, and 90's. The z line really put Nissan
on the map in the U.S., starting off with the 240z, in 1969. This family of affordable
sportscars made it possible for every Joe Shmoe to
drive a fun, stylish car that could rip. Then, there was, of course, the Skyline, which is arguably one of
the most influential cars of the last 50 years. As American cars got worse
in the 70's and 80's, both the Skyline and the z
cars continued to get better, building a core fan base with
cars that really stood out. By the 1990's Nissan was
at the top of their game, with new models like the twin turbo 300zx, even the 240sx, they gained
a whole new generation of enthusiasts. Even their entry-level models
had high performance versions, like the Sentra SER. They made great cars that
drove well, they were reliable, and felt planted on the road. Nissan spent a lot of money
making their cars great. The yen was so strong,
that they could afford to. But, before long, Nissan was
struggling to make a profit. Actually, for most of the 90's, they didn't even make a profit, at all. When you're not making a
profit, it's hard to innovate. That's Business 101. (chime sounding) So, while their competitors
were releasing new models every couple of years, Nissan almost went a decade
without a major update to their models, which,
uhhhh, sounds familiar. From a car enthusiast
standpoint, we look back at the Nissans from the
90's as some of the most fun drivers' cars out there. But, little did we know, that they were on the verge of bankruptcy. They were actually losing
$1000 for every car they sold in the U.S. I never took any business
courses, but that's, that's not good. By 1999, things were looking
even bleaker for Nissan. They entered into an alliance with French car manufacturer, Renault, who offered to take on $5.4
billion of Nissan's debt, in exchange for 36% stake in the company. On the other hand, Nissan
would import, and sell, Renaults in Japan. It was a solution that
benefited both companies. To spearhead the new initiative
that would bring Nissan out of the red, Renault
brought in the notorious Carlos Ghosn as CEO, who
is in jail, right now. More on that, later. So, what are the seven ways
that Nissan is failing? Well, let's get into it. (apprehensive music playing) Cutting too many corners. The first major change
Carlos Ghosn enacted, as CEO, was to cut production cost. Nissan was spending 15
to 25% more on parts than their competitors. So, they started to install cheaper parts. Which makes sense, from
a business perspective, but then we get things
like timing belt guides made out of plastic. Guides and tensioners that
kept the timing belt in place, on six different Nissan
models, made from 2004 to 2010, were made out of plastic
that degraded really quickly. Which meant timing belts on those cars had to be replaced early
on in that car's life. Nissan actually lost a class
action lawsuit over it, and they were forced
to address the problem. One of the more well-known
foibles that afflicted Nissan cars was their CVT. Nissan's continuously
variable transmissions were some of the worst-made
transmissions in recent history. They commonly failed around 60,000 miles, which is, conveniently, right
when their warranty ran out. Luckily for owners, Nissan
was sued, yet again, and was forced to recall
the cars that had the CVT. They also extended the warranty from 60,000 miles to 100,000. So, good for them. (jazzy music playing) Even with a new round of updates in 2012, they weren't quite able
to improve quality, or driver satisfaction. In a consumer report study, done in 2014, 14 of the 22 Nissans and
Infinities ranked last or second-to last in their
respected categories. Some testers said the cars
felt cheaper, less refined, and even less enjoyable than before. That's, that's not progress. If there's one good thing to
be said about Carlos Ghosn, it's that he did get
Nissan out of the hole. Without his contributions, we might not have the brand around, today. If he didn't cut cost in
jobs and lower the overhead, they wouldn't have been
able to design new cars. This is when Nissan started
developing more entry level volume cars, like the Versa. You know, everyone's
most hated rental car. I sat in one, and it somehow felt older than an, like, old Sentra. It was weird. To their credit, though, these volume cars are the biggest reason Nissan was able to turn things around. But, in the process, they kind of lost the company's soul. Cars, like the crossover Murano and the new generations of the Altima and Maxima, were decent, but the market
quickly became saturated. It seemed like every other car on the road was a freakin' Altima. This early 2000's gen was
the most powerful yet, but mechanical issues plagued the cars- usually, right after the warranty ran out. Floorboards rusted
through, they ate up oil, and catalytic converters
were known to fail. These cars wouldn't have
been volume cars, though, if people didn't buy them. To ensure that that happened, Nissan sold to anyone, despite if they could afford it, or not. This was possible because
of a little thing called subprime loans. (quirky music playing) (party horn sounding) if you're not familiar
with these kinds of loans, they're, basically, what led
to the recession of 2008. - What in the world is
happening on Wall Street? - They're aimed at people with bad credit, and have insanely high interest rates, like 25%! One guy in Indiana financed
a $21,000 used truck with a subprime loan. But, by the time he would have owned it, it would have cost him over $44,000! Good thing he couldn't make
that $750 monthly payment, and ended up having to go bankrupt. There are 1000's of stories like this, and Nissan's not the only
one causing this issue. (engine accelerating) (upbeat music playing) Maybe the biggest reason
Nissan is blowing it, is because they're in the same situation that
they were in the late 90's. Their most fun, most
enthusiast-based models haven't been updated frequently enough. The 350z was in production
for seven years. The 370z has gone 10 years
with almost no updates! I mean, the 370 was basically
just an upgraded 350, to start off with. Even Nissans's flagship model, the GTR, has been around for 12
years, with only a handful of performance upgrades. Most changes they make are
based on comfort and style. You can't do that and expect
fans to stick by your side. We get bored! We're just cats, man! I'll play with that toy
for like, five minutes, and then never touch it again. Then, there's the whole
Carlos Ghosn fiasco. The man who turned the company around turned out to be siphoning
money from said company. He got busted last year. We actually made a whole video on it, if you wanna learn more. The whole Carlos Ghosn
thing kind of soured the public's perception of Nissan, and they have yet to bounce back. In the spring of 2019 Nissan
lost 95% of net income, and 99% of their operating profit. Their revenue dropped 13%,
and the company was forced to lay off 12,500 employees. Nissan is basically in the same
exact position they were in before Carlos Ghosn took over. So. How should they turn
things around, this time? (resolute music playing) I think the most pressing issue is that Nissan needs to make
their cars more reliable, starting with the quality of their parts. There's a reason that
30-year-old s13's are still the preferred car for drifting. They're solid as hell,
especially the chassis. You can strip them down,
and they still maintain structural rigidity. Can you imagine, people in 30 years, drifting clapped out Murano Cabriolets? Not gonna happen. But let's take a look at what
happened with the KDM cars. Kia and Hyundai had some
of the worst reputations in the late 90's and early 2000's. But, they turned things
around, and nowadays, they're affordable, reliable, and some of the best-selling
cars in America. The quality is great,
and some of them look cool as hell. The Veloster N is a certified ripper, and Hyundai even has a luxury
brand, now, the Genesis. The Kia Stinger is amazing. I love that car. Good work, KDM. Nissan, you should copy their homework. I know the type of
person who drives a GTR, but I don't know who drives Nissans. I don't think Nissan
knows who drives Nissans . They need to find their
audience, and then cater to them. Maybe they should take a
page out of Dodge's book. They debuted the Hellcat,
maybe the most ridiculous production car, ever made. And instantly, that
cemented their identity. This is a consistent message
across all their cars and marketing, and we
like them better, for it. They paid James to get a Dodge tattoo. - Ow! Owowowow! Ow! - Third, and, most
importantly, in my mind, take a page out of your
own book, and bring back some fan favorites, Nissan. How sick would it be if
Nissan made a new Sylvia? It would be great
competition for the GT86. Overall, I think they need
to be more competitive with their cars. You hop into a new
Corolla, it's pretty nice! You hop into a new Sentra and you're like, how does this interior feel
older than the old Sentra? It doesn't make sense. This just might be the car nerd in me, but I think it's vital that
Nissan focus their efforts on updating the z and the GTR. Both those cars are sick, and still relevant in the bigger picture. But, it's been more than a decade, Nissan. That's unacceptable. Think about how sick
a new z model would be to usher in this new decade. And maybe a new GTR? The R36, perhaps? I think most of all, we
just wanna see Nissan make some fun cars, again. When the GTR came out, it was awesome. It is still an awesome car. But Nissan needs to follow it up with something else, soon, before our excitement- and our bank account- runs out. Hey, so this is the first
new episode of 2020. Let's resolve to be
more kind to each other. Nissan, I love you. I wanna see you guys succeed, man. Be kind! See ya next time. New catchphrase 2020, baby! Being nice is not the same as being kind. Being nice, people be nice to your face. Don't be nice! Be kind! See ya next time.
Lol I own a Skyline and a Versa. The best and worst of this world
Bring back the s chassis.
Here is my 4 step plan to make Nissan alive again:
•Bring back the s chassis (duh, obviously)
•Slap the gtr vq38dett into a four door, probably a maxima, maybe into an infiniti chassis or something, but make a competitor for the Dodge avenger hellcat. (plus create some out of the box hype for the brand)
•Refresh the Z chassis, make a version with the vk45 (infiniti v8) in it. Call it the muscle car killer or whatever.
• Each car should only have these knobs and a touch screen: volume knob, bluetooth/radio/ aux button, pass air temp, pass air speed, driver air temp driver air speed.
Performance EVs! Imagine a rwd silvia with 500hp/500tq!