Quick Read
- Over 400,000 Nissan vehicles recalled due to potential engine failure issues.
- A U.S. class action lawsuit alleges CVT transmission failures in Nissan Murano and Maxima models.
- Nissan is in talks with Foxconn to produce EVs at its Oppama plant, potentially saving jobs and costs.
Nissan Motor Co. finds itself at a crossroads in 2025, navigating significant challenges and opportunities that could shape its future trajectory. From large-scale vehicle recalls to a class action lawsuit in the United States, and transformative negotiations with Foxconn for electric vehicle (EV) production, the Japanese automaker is facing a critical year.
Massive Recalls Impact Over 400,000 Nissan Vehicles
The National Highway Traffic Safety Administration (NHTSA) issued a recall affecting over 400,000 Nissan and Infiniti vehicles on July 7, 2025. According to a report from USA Today, the recall stems from potential engine bearing defects that could lead to catastrophic engine failure. The affected models include 2021-2024 Nissan Rogue, 2019-2020 Nissan Altima, 2019-2022 Infiniti QX50, and 2022 Infiniti QX55 vehicles equipped with 3-cylinder 1.5-liter or 4-cylinder 2.0-liter variable compression turbo engines.
Owners of these vehicles are urged to check for metal debris in the engine oil pan, with repairs or replacements being conducted as necessary. Notification letters are expected to be mailed by August 25, 2025. The recall underscores the importance of stringent quality control measures in an increasingly competitive automotive market.
Class Action Lawsuit Over CVT Failures
In addition to recalls, Nissan is facing a class action lawsuit in the United States concerning issues with continuously variable transmissions (CVT) in specific models of the Nissan Murano (2015-2018) and Maxima (2016-2018). According to Union Rayo, the lawsuit alleges that the CVT system led to poor vehicle performance, mechanical failures, and costly repairs, often after warranties had expired.
To address these claims, Nissan has proposed three compensation options for affected owners: an extended warranty, cash reimbursement of up to $5,000 for documented repair costs, or a $1,500 voucher toward the purchase of a new Nissan or Infiniti vehicle. Eligible owners must submit claims by July 3, 2025, to receive compensation. The lawsuit highlights ongoing customer dissatisfaction with CVT technology, an issue Nissan has faced for years.
Talks with Foxconn Signal a Strategic Pivot
Amid these challenges, Nissan is also exploring new opportunities to remain competitive in the rapidly evolving EV market. On July 7, 2025, News.az reported that Nissan is in discussions with Taiwanese electronics giant Foxconn to manufacture EVs at its Oppama plant in Yokosuka, Japan. This partnership could save the facility from closure, a risk stemming from Nissan’s global restructuring plan announced earlier this year by CEO Ivan Espinosa.
The Oppama plant, which employs nearly 3,900 workers, was among seven factories slated for closure under a cost-cutting initiative aimed at reducing Nissan’s global footprint by 15%. Collaborating with Foxconn, known for its expertise in electronics manufacturing, could not only preserve jobs but also position Nissan as a leader in agile EV production. If successful, the partnership could reshape Japan’s EV manufacturing landscape and set a precedent for cross-industry collaborations.
The Bigger Picture
The recall of over 400,000 vehicles, the class action lawsuit, and the potential Foxconn collaboration reflect a pivotal moment for Nissan. The company’s ability to address quality issues, rebuild customer trust, and innovate in the EV sector will determine its long-term success. With global competition intensifying, particularly from Chinese automakers, Nissan must navigate these challenges strategically.
As 2025 unfolds, Nissan’s actions in the face of these crises and opportunities will be closely watched by industry analysts, consumers, and competitors alike.