Seven years ago, Carlos Ghosn (the man who saved Nissan from bankruptcy) became its most infamous fugitive, fleeing Japan in a literal box. Well, today Nissan is still paying the price… not in court but in profits. The Japanese automaker just reported an awfully impressive 90% profit drop compared to last year.

Let’s turn back time to 2018. Nissan thriving under Ghosn’s leadership. He orchestrated a global alliance with Renault and Mitsubishi, turned Nissan’s financials around, and made the Nissan Leaf one of the first mainstream EVs. But then came the accusations… Ghosn allegedly understated his salary by tens of millions and misused company funds. He denied it all, but before Japan could convict him, he went full Houdini and fled to Lebanon in a freaking music box. Since then, Nissan has been a joke. Executives have been playing musical chairs, mass layoffs hit 9,000 workers, and alliances fractured. Nissan even broke off its rocky relationship with Renault last year. And no… flying solo hasn’t worked out.

This year’s financial results read like a horror script. Operating profits are down 90%. And net income is down 94%. Nissan’s been cutting costs and production like they just got back from a Dave Ramsey conference, but it’s not enough. Dealers report customers see Nissan as the bargain-basement brand of automakers, thanks to outdated models and huge discounts. Fun fact: Nissan hasn’t released a hybrid in the U.S. (while companies like Toyota are going all in on the market). Makoto Uchida, Nissan’s CEO, has even cut his own salary by 50%. Desperation doesn’t stop there… Nissan is putting all their hope in a merger with Honda, its better-organized but similarly EV-lagging rival, to stay in the game.

Honda might seem like the knight in shining armor here, but the reality is far less romantic. This merger is expected to create the world’s third-largest automaker by sales… on paper, a logical move. In practice? Not so much. The two companies are oil and water. Honda’s engineering-first, “build it better” philosophy stands in stark contrast to Nissan’s boardroom squabbles and patchwork strategies. To make things even more awkward, both brands are tangled up with Dongfeng Motor in China, creating overlapping partnerships that resemble a love triangle reminiscent Ross, Rachel, and Joey from Friends… except no one’s remotely likable, and instead of breakups, you get redundant EV projects and awkward shareholder meetings.

Still, Nissan isn’t out of the race yet. Its global brand remains a household name, and it’s produced some undeniably iconic cars… the Z sports line, Murano SUVs, and now, the Frontier midsize pickup, which has been giving the new Tacoma a serious run for its money. If Nissan can embrace its strength as a “value” brand, it might just carve out a survival strategy in an increasingly competitive market.

P.S. Our "Insider Trade Tracker" recently flagged John F. Barry, CEO of Prospect Capital Corp, splurging $8.58 MILLION to scoop up 2 million shares of his own company’s stock at $4.29 per share. With PSEC trading near its 52-week low, Barry’s wallet says he’s betting big on the company’s 12.6% dividend yield and 21-year track record of payouts. Moves like this are why our tool is your ticket to tracking where the smart money flows… in real time. Oh, and FYI, we’re currently ranked #23 for free News Apps, ahead of Bloomberg and The Washington Post. 🎉 Curious to see what other power plays we’re tracking? Become a Stocks.News premium member today… or just keep enjoying our free content. No pressure. 😉

Stock.News does not have positions in companies mentioned.