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Today on the show, we’re covering Nissan’s desperate plans to execute a turnaround, announcing plant closures and more. Plus, OEMs in Europe are matching affordability by removing infotainment systems, and Rick Hendrick sets a record auto auction bid for a great cause.

Announcement

• New Episode of Auto Collabs Live from Public Policy Day: John O’Donnell of WANADA on the contribution of car shows to car culture.
• New Episode of NADA Show sessions with Suzanne Reimer of Lotlinx
• Upcoming ASOTU Edge Webinar with Matt Murray of Widewail: Reputation Management Class: Benchmarks, Strategies and how Dealers are Leveraging AI in 2025. Next Wednesday January 19 at 2PM EST
• ASOTUCON.com is live!
  • Dealer Tix are $499, IP tix are $1499

Show Notes with links:

• Nissan CEO Makoto Uchida is taking drastic steps to pull the automaker out of financial trouble, announcing factory closures, job cuts, and executive downsizing in a renewed turnaround plan. The move comes as Nissan reports its second straight quarterly net loss, forcing a reevaluation of its strategy.
  • The company’s latest financials show an operating profit drop of 78% and a net loss of ¥14.1 billion ($89.5 million) in the last quarter.
  • Nissan plans to close three factories by 2027, starting with its Thailand plant in April.
  • U.S. production shifts will be cut at the Smyrna, Tenn., and Canton, Miss., plants.
  • The company is slashing 9,000 jobs worldwide, including 6,500 in manufacturing and has also returned to stair-step dealer incentives, a practice it previously vowed to eliminate.
  • Nissan recently pulled out of merger talks with Honda, citing concerns over autonomy.
  • CEO Makoto Uchida said, “Can we continue to survive as a standalone company? We’ve been discussing that for some time now. This is a big subject matter,”

• With rising vehicle costs, automakers are looking for ways to make cars more affordable. While European brands like Stellantis are reducing costs by eliminating infotainment screens, U.S. consumers currently have no such option.
  • Some automakers are exploring "de-contenting" existing models to lower production costs as eliminating in-car screens can reduce costs associated with wiring, sensors, and software development.
  • European models like the Fiat Grande Panda Pop and Citroën Ami replace traditional infotainment systems with simple phone mounts and USB ports.
  • Many older luxury vehicles, such as the Porsche Cayenne and Audi A3, lack modern phone integration despite expensive infotainment systems.
  • From the Jalopnik article: “Give me a car with manual windows, optional air conditioning, and steel wheels, while we’re at it. Let’s get those average transaction prices back down below $30,000. The American auto buyer has been living fat on the hog for too long, and rolling negative equity into another new thing nobody can afford isn’t the answer to our collective deb

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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