In an era where the automotive sector was once a beacon of economic prosperity, car manufacturers are now grappling with the stark reality of economic downturn. Nissan and Stellantis experienced a tumultuous week as their shares plummeted, following disappointing results that mirrored the gloom surrounding industry giants like Tesla. The challenging market conditions are eroding the once-healthy margins of European groups and stalling the turnaround efforts of their Japanese counterparts. But what does this signify for the future of the auto industry?
Nissan's latest troubles are making headlines, and it's not just a minor bump in the road. According to Reuters sources, the automaker has slashes its output by a third at its top Japanese plant this month. The reason? A struggle with demand that has forced a significant reduction in the production of its Rogue crossover. Instead of the planned 20,000 units, Nissan will now export around 10,000 cars. The company has remained silent on the issue, but the report casts a shadow over recent announcements.
The luxury automaker Porsche has hit a significant bump in its journey, with sales and profits taking a tumble in the first half of the year. The operating profit plummeted by over a fifth to approximately $3.3 billion, while sales experienced a nearly 5% decline. But what's causing this sudden jolt, and what does it mean for the future of this iconic brand?