It’s been more than four years since the car market changed forever, and you know what? It’s still weird. While some manufacturers have seen roaring success, others aren’t doing as well, and Nissan in particular has found itself in a tight spot. Not only are profits down severely, a report claims around 38 percent of American Nissan dealers are losing money. So what’s going on here?
In addition, Volkswagen might be shuffling its EV plans so that the next ID.4 rides on the same platform as the current one; the real bottleneck in the EV mandate race might simply be friendly supply of critical minerals; and if you’re driving around with a Takata airbag, for goodness sake, take it in and get the recall work done. I’m not your mother, but even with our “safety-third” approach, safety is still on the list.
I’m taking over from Matt for The Morning Dump this week as the team heads to Pebble Beach in pursuit of classics, debuts, and perhaps debauchery. We’ll see how wild this week’s Tales From The Slack shakes out. Until then, pull yourself a shot of espresso and dive into our morning grab bag of automotive stories.
It Apparently Sucks To Sell Nissans Right Now
It’s been a terrible, very bad, no good year for Nissan. Not only did profits plummet by 99 percent in the first quarter of 2024, the brand’s continued to bleed market share in America, and that’s having some serious effects on dealerships. An Automotive News report claims that roughly 38 percent of all U.S. Nissan dealerships are losing money, and that trend’s showing no signs of reversing soon.
About 38 percent of Nissan’s 1,071 dealerships across the country are losing money, a retailer with knowledge of the matter told Automotive News.
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So, what’s actually going on here? My first guess is that Nissan might simply have too many dealers. With a 2023 market share of 5.4 percent, Nissan doesn’t need 1,079 franchises — more than even Honda. Secondly, dumping a new Rogue on dealers before clearing out excess 2023 inventory has led to significant discounts just to move metal. Nissan’s currently offering zero percent financing for 36 months and $1,250 on the hood of every 2024 Rogue. Finally, Nissan just hasn’t kept pace with where the market’s going. While Toyota and Honda are surfing the hybrid wave, Nissan doesn’t have any hybrid vehicles on sale in America at all.
While new product like a redesigned Kicks may help boost sales slightly, don’t be surprised if your local smaller Nissan dealer closes up shop if the bleed continues. This is the sort of problem that can’t simply be fixed with lower interest rates. Even with better product, attrition isn’t off the table, and you can only feel so bad when dealers had years of markups to stockpile cash through.
Born Too Slow?
It seems like the saga of Volkswagen’s software-addled SSP platform rollout will never end. After serious delays, it turns out there’s a chance it’s been kicked another generation down the road. According to Reuters, Volkswagen might be seriously shuffling its future mainstream EV plans, as the next ID.4 might not ride on the anticipated SSP platform at all. This feels like a big deal, given that the SSP platform will support an 800-volt architecture for faster charging, is designed to handle 1,700 horsepower, and is meant to rationalize Volkswagen Group EVs from top-to-bottom, unlike the current patchwork of EV platforms.
Originally set to launch a vehicle in 2026, the project was delayed by Diess’ successor Oliver Blume due to software problems at the group’s struggling Cariad subsidiary.
To plug the gap, the carmaker has created a new version of its existing MEB platform on which it plans to release another ID.4 in 2026.
In an internal document presented to the automaker’s board, executives reasoned there was no longer a need to release another larger car on the SSP platform immediately, and so pushed back the release of another ID.4 and SUV to the early 2030s, according to the person, who declined to be named.
If this report stands firm, this could mean that the first Volkswagen-branded product we see on the SSP platform is the next electric Golf, which actually doesn’t sound like a bad plan. Affordability is a key issue in the EV race, and launching a new platform underneath a less expensive model is a good way to get butts in seats. However, it’s also something to be met with trepidation because SSP was supposed to launch in 2026, so will it still be competitive under a Volkswagen product on the cusp of the 2030s? We’ll have to see, but there’s also a chance we’ll have bigger problems in the 2030s than just the competitiveness of a Volkswagen platform.
Can We Mine Fast Enough?
It’s hard to lay down a full-court press of EVs when friendly mineral supply might not be able to handle it. While eight U.S. states, Canada, the European Union, and the United Kingdom all have EV mandates, there’s a chance the market won’t meet them, even if it wanted to. As Automotive News reports, we really need to crank up mining in order to build all these dang battery electric vehicles, because if we don’t, we’ll miss targets by a vast margin. From the news site:
So, build and expand on mining, right? Great idea, but you have to keep in mind, this is a slow industry. Although California’s Salton Sea is a rich deposit of lithium, construction of a seven-phase lithium extraction project there only started this year. What’s more, with just 25,000 tons expected to be extracted by 2025, and the fact that direct lithium extraction is still a relatively new technology, there are a few big potential hurdles for this project, and that’s just one example. If a supply crunch occurs, perhaps in the short-term, massive BEVs with 95 kWh battery packs aren’t the answer.
Ford, Mazda Issue Do-N0t-Drive Warnings For Takata Airbag-Equipped Vehicles
If you’ve owned a car in the past decade, you’re hopefully at least somewhat aware of the massive and deadly Takata airbag scandal. Well, cars with these defective airbag components are still out there, and Ford has placed more of its vehicles under a do-not-drive advisory, pretty much the most severe stage in a voluntary recall. Here are the details for affected Ford models:
The do-not-drive advisory applies to all customers who have not completed recalls 15S21, 17S42 and 19S01, including driver and passenger airbag inflators in:
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2004-2006 Ford Ranger trucks
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2005-2014 Ford Mustang vehicles
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2005-2006 Ford GT vehicles
And passenger airbag inflators in:
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2006-2012 Ford Fusion, Mercury Milan, Lincoln MKZ / Zephyr vehicles
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2007-2010 Ford Edge and Lincoln MKX vehicles
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2007-2011 Ford Ranger trucks
As for the Mazdas, the list covers far fewer vehicles, some 82,893 compared to Ford’s 374,290. As published by NHTSA, here’s the full list:
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2004-2006 B-Series
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2007-2009 B-Series
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2003-2008 Mazda6
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2006-2007 MazdaSpeed6
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2004-2011 RX-8
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2004-2006 MPV
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2009-2013 Mazda6
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2007-2012 CX-7
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2007-2015 CX-9
So, if you own any of those affected vehicles and haven’t completed the recall, please take it in ASAP. While many affected vehicles are likely no longer on the roads but still in Ford’s system, some of them are still out there. You don’t want shrapnel coming towards you at Mach Chicken.
What I’m Listening To While Writing TMD
Interplanetary Criminal is something of a phenomenon amid the new school of UK Garage producers, and his track “Races” with Blanco has been an absolute earworm that’s earned a spot on just about every playlist I’ve made since March. From bouncy, rolling production punctuated by glitchy synths to some playful bars (“Halloween party, I’m comin’ as Jason /
Not that one I’m talkin’ ’bout Bateman”), this track’s practically made for top-down blasts.
The Big Question
Are you putting off getting recall work done, or have you recently taken your vehicle in for a recall? Either way, let’s chat about it, because service experiences for recall work can vary wildly.
The reason mining doesn’t happen quickly in the US is twofold: one, it’s obviously very expensive (especially when a single haul truck can cost upwards of a million dollars *before* you buy wheels and tires for it) but the second is more interesting: Regulation. Largely, the regulations are in place with good intentions (and in many cases good results) but the fact that a person wanting to open a new mine anywhere in the US has to go to at least three departments in the federal government, an indeterminate number of state, county, and city departments means that the permitting is so onerous, many companies will just get the “important ones” (federal and state) and just pay the fines/get the proper permits when local enforcement shows up. There needs to be some sort of streamlined process to get these permits done (and done correctly, the first time) otherwise we will always be reliant on bingham canyon for copper and other countries for “critical minerals” like lithium and cobalt.
It worth noting that even when Nissan/Datsun was making some of the best cars in their respective classes, they could not make money in the US.
They traded their reputation for sales and still ended up in the same place. Which, considering the substantial improvements made in recent years, is a shame.
Hard to be believe Nissan is not doing so well, every other car i see on the road is a Rogue, or “Rouge” as their owners spell it.
And maybe instead of trying to figure out how to extract all this material for EV batteries, maybe we can also try to figure out how to recycle them responsibly and efficiently.
By the time the lithium mines are in full production, other, better batteries will be going to market.
Needs MOAR 510.
The U.S. Is lucky, as a big and geological diverse country we have all the minerals present if we have the will to mine them. It just takes time. The Thacker pass lithium mine was delayed by 2.5 years due to unnecessary lawsuits.
Given the EV goals of 2035 we could have the mining and refining capacity ready to go by that year easy, if we support and allow domestic mining.
As a bonus domestic mining and refining will reduce shipping emissions and costs.
Good thing my Alfa 2000GT doesn’t have an airbag, else it’d be terribly unsafe to drive!
Our Nissan dealer in Bend Oregon abruptly closed a couple of months ago, the nearest dealer is now in Eugene on the other side of the Cascades. I also drove past what appeared to be the dealer in Salem and saw dumpsters full of rubble.
Aka a bunch of Versas.
I don’t recall the last time I was in for a recall.
My most recent recall was for the backup camera on my 2017 Ridgeline. I did put off the work for about 6 month’s because it is an hour drive to the dealer so I had to line up a trip and doing some remote work.
The process went smoothly they didn’t try to add any other services on and even gave it a quick wash.
The Wi-Fi was also fast enough to get some work done while waiting with power and usb ports that were plentiful and the area had a high table with stools or just the right height for a stand and work option also.
The did ask if I wanted a trade-in estimate and I politely declined.
Once again, I humbly ask for links to the embedded youtube video.
Luckily for safety the RX-8’s engines have issued a “will not drive” action, thus saving their drivers.
My Grand Cherokee 4XE has the ball joint may fall apart recall.
I took it in for this back in April. At the time the dealer told me they were only able to order 2 of them per week, and I’m #40 on the list. So I should hear back around October.
I hope there isn’t anything wrong with my ball joint
How do you like the GC 4xe otherwise? I’ve got it on my “maybe” list to replace my X5 PHEV (CPO ’16 that I’ve had 5 years now). My local dealer has a few, but when I went to drive one every single one had their battery at 0%…
When everything works properly, its great. Tons of gremlins though, spent its first month in the shop. Infotainment screen flickers a lot (even after doing that recall) and supposedly there’s an update pending that will brick it but mine hasn’t done it yet. Transmission can be a bit jerky, especially at 0% battery. Random buttons decide not to fire, like the one for the hatch up on the center roof console.
Its a comfy cruiser but the MPG is poor on the highway so unless you’re in a position to use this thing on 100% battery on your daily commute then charge overnight don’t expect miracles in terms of gas usage.
I honestly wouldn’t lease it again. Payment is good, but insurance is high. And even with the close to $20k cash on the hood a year in the lease is so upside down that if I traded it in I’d have to pay all my remaining lease payments anyway.
Excellent info. Thanks!
The thought of spending $70k on a Jeep GC seems insane to me, but they do seem to have far more rational pricing once incentives are factored in. (Like you, I would *NEVER* buy one given the infamous unreliability, but I would consider leasing.) I’m cross-shopping against the Sorento PHEV and possibly a CPO XC90 or another X5. Maybe the Mazda CX90? Honestly the main reason I’m considering the Jeep is that I have a dealer within 5 miles and all of the other brands are an hour away. Plus the GC does seem pretty nice inside – certainly with the right options almost as nice as my 8 year old X5. But the EV range and MPG are def not at the top of the class.
I had a Wrangler 4XE as a rental for a week. I didn’t intend to rent one, but that’s what they gave me for my small sedan reservation. I wasn’t impressed and wished I just had a normal Wrangler. It was at 0% the whole time because of course it was when I picked it up. I found that transmission particularly irritating to work with. Looked pretty cool though!
My SO’s parents have outstanding recalls on their ‘18 CR-V but I’ve been waiting about a year for the parts to become available to knock it out at once.
Yes, and it seems they didn’t report my recall work to the manufacturer, so I’m still getting notices. Annoying as hell, and the phone tag to try to get it sorted is a pain.
Takata Strikes Again 🙁
I thought repos were profitable for the dealers LOL
I keep getting notices for the hood latch to get fixed or replaced on my Spark. I may take it in one of these days, but I think I already fixed it awhile back when the hood wouldn’t open. After getting it to finally pop open again, I ended up prying-bending-hammering-greasing the latch parts into a slightly different configuration and it works quite well now.
No real sympathy for Nissan. Build interesting vehicles if you want people to buy. Also, if you get a semi-interesting vehicle, make sure your dealers aren’t such jerks about marking it up that buyers will leave the showroom with a permanent Never Nissan attitude.
For Takata, I have one of their recalled airbags on the passenger side of my Outback. It hasn’t been replaced. I got notices for the better part of a year that it was recalled, but they didn’t have parts. Then it was the pandemic, and a recall on an airbag for an unoccupied seat wasn’t enough to get me to hang out at a public place.
Now I just enjoy the letters. I think they may think I don’t speak English, as they have resorted to sending me Spanish versions of the letters and postcards. If I get it fixed, I lose a pen pal.
Ding ding ding! Their dealers ruined the rollout of the Z – for any that actually had an allocation. Toyota is going the same way though with their dealers playing ADR games. That’s ok though – Toyota customers will just take their business to a different dealer that will give them the deal they won’t. Unfortunately all Nissan dealers are garbage except that one guy in Phoenix.
Right? It’s an interesting car at MSRP. Slapping on a five figure adjustment opens up a lot of options it doesn’t compete well against. We should be seeing those things everywhere like we did when the 350Z came out. I literally have not seen a single Z out and about.
Also, I almost never see a 350 or 370 either. Don’t know if that is due to quality or lifestyle.
I think the last Z was one of the most impressive own-goals in my lifetime.
“Hey we at the two-steps-up-from-BHPH dealer got a new sports car! let’s make it cost more than a used AMG!”
Followed by:
“Nobody wants to pay anymore :(“
If I had to guess, it’s because Nissan and their dealers are trash.
I’ve had both of the front airbags replaced on my ’12 MKZ and did them pretty soon after parts were available. It was a non-event. Just show up, wait a bit, and drive off. I will say the Lincoln dealer had a much nicer waiting area than the Ford dealer. They had little mini-offices I setup to work in while waiting – pretty nice compared to the uncomfortable chairs the Ford dealer had.
I’ve been stalling for a few years on one for my Vette. Some wire at the underhood fuse block is a bit too short and they want to replace it. I’m a bit leery of having someone pull that thing apart and wind up chasing electrical gremlins forever. I probably should schedule that one of these days, though.
Not sure why Nissan USA hasn’t introduced the E-Power drive trains here yet, the rest of the world gets them. It’s a serial hybrid system, a bit like David’s i3 Rex but not a PHEV.
Is that the powertrain in the Mitsubishi Outlander PHEV?
No, the powertrain in the Mitsubishi Outlander PHEV is the powertrain from the old Mitsubishi Outlander PHEV with a bit of a battery and electric motor boost, including the carryover all-Mitsubishi 2.4L 4B12 I4. I’d bet that at this point it’s probably pretty reliable given how long it’s been in production.