If you've been following the latest news about Nissan's financial meltdown, you may wonder how they manage to make the best-selling crossover SUV in America and one of the world's most respected sports cars all while simultaneously being on the verge of financial death. If you want someone or some "thing" rather place blame on this whole debacle, let us direct you to a certain transmission company known for making the most hopelessly unreliable CVTs to ever leave the depths of the devil's bathroom.

These slushy automatics are the target of several class-action lawsuits, claiming that the Nissan was well aware of how defective these transmissions were, yet they still happily shipped them all over America and many places elsewhere.  The Rouge and Sentra may have sold like hot-cakes, but this boom period hid a grizzly truth underneath.

Today, let's look at how Jatco transmissions may be the death of Nissan, and what could be done to fix it.

Who The Heck Is Jatco

Via Alchetron

For those of you who aren't mechanics, allow us to give you a quick lesson in Japanese transmission companies. Like American manufacturers like Allison, Japan often contracts with independent companies to supply them with their automatic or standard transmissions. Only Honda and GM create their own, and they've been criticized for quality issues in the past.

The Japanese Automatic Transmission Company or Jatco for short, supplies transmissions for an incredibly long list of manufacturers all over the world. Ranging from Chrysler, Mazda, Mitsubishi, Subaru, MG, Land Rover, Renault, and even AutoVAZ. As they're most famous for putting dodgy CVTs in Nissan cars, it makes sense that Nissan owns 75 percent of the company, but their faith in Jatco may cost Nissan dearly.

Completely Useless Transmissions

Fans of old Mopar products rejoice, Chrysler transmissions from the 80s and 90s aren't the least reliable automatic transmissions in the world anymore. The scale of the devastation of Jatco CVTs will not be fully known for many years, but as of right now, it stands to bring Nissan to the brink of collapse.

Class action lawsuits alleging Nissan models equipped with Jatco CVTs spat their Guts up at as low as 30 thousand miles have led to landmark financial settlements.  This pathetically low figure meant that even as Nissan managed to sell hundreds of thousands of Sentras and Rogues, the company was losing all that money in recalls and extended warranty work. In fact, they were losing money on every car they sold.

Drivers would find that their Nissan vehicles would start to judder and shake violently as shifting between park, drive, and neutral in daily driving wore out delicate CVT components. To add to the problem, the car's two-port transmission oil cooler offered far less cooling than was necessary for long service life. Meaning not forking out $300 for a transmission flush in regular intervals meant fluid inside the transmission would deteriorate rapidly and make the car overheat. Nissan is paying the price for their lack of quality control, as customers across the world are demanding answers for pathetically short service lives out of their shiny new Nissans.

Related: These Ford Fusion Years Have The Most Transmission Problems

Maybe The Worst Idea In The World

thecarconnection.com

If tootling around in a 2800 pound Sentra is enough to make it fall to pieces, wouldn't you reckon it'd be a really awful idea to put it in a big 4x4? Well, we can only assume Nissan didn't agree. The CVT in the latest generation Pathfinders operate in much the same manner as the Sentra, Rogue, and even the Versa.

2016 Nissan Sentra
via The Car Connection

Only this time, there's a nearly two and a quarter ton hunk of Japanese steel and iron bearing down on the poor gearbox (or should we say rather a belt box). And so, just as the Sentra, Pathfinders are making their way in droves either in limp mode or on the back of a tow truck to Nissan dealers all over the country to have their transmissions fixed under the agreed extended warranty.

Related: Here's Why The Ariya Is Crucial For Nissan's Success

Will This Sink Nissan?

2020-nissan-370z
via flickr

Nissan is in as dire straights as they've ever been during their time in the U.S Domestic market. Even their struggles of the late 80s and early 90s pale in comparison to how bad things are now. Much buzz is abound on forums and news websites around the world of Nissan declaring bankruptcy sometime in the next five years if they can't recover from their downward spiral.

Whether such an event would lead to them pulling out of the US entirely is unlikely, but expect such an event to finally bring the end of the Renault-Nissan alliance formed by the now internationally wanted criminal Carlos Ghosn.

Nissan Z Proto 400Z
via Pinterest

We'd be heartbroken if Nissan had to leave. The company that brought us the 300Z and the R34 Skyline deserves a chance to redeem itself, and it's looking like Nissan may ditch Jatco CVT's in the near future. If this is true, there may be hope on the horizon for the company that so many of us used to adore.

Sources: https://www.classaction.org, www.autoblog.com

Next: Toyota Recalls 2019 Corolla Hatchback Thanks To CVT Issue