Part 2/3:
Nissan's debt is currently rated as "junk" by credit rating agencies, making it the only major automaker in the world with such a low credit rating. The company has a massive debt burden, with around $1.6 billion due next year and a staggering $5.6 billion due in 2026. This comes at a time when Nissan's sales are rapidly declining, with the company reducing its global production by 20%.
The Looming Electric Vehicle Transition
The automotive industry is undergoing a significant transformation, with the shift towards electric vehicles (EVs) accelerating. In China, the world's largest auto market, EVs are expected to account for over 90% of sales by 2026. Nissan, which has traditionally relied on its profits from the Chinese market for around 40% of its overall profits, is ill-equipped to navigate this transition, as it has struggled to develop and sell competitive EV models.
Dwindling Access to Credit
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