Nissan scrapped a bank it couldn't afford to build

Carmakers shut down factories and cancelled models to cut costs, a strategy most investors supported. However, the business that has consistently made the auto industry profitable has remained unchanged - lending money to customers purchasing vehicles. These companies' finance arms borrow in the bond market, lend to buyers at a markup, and pocket the difference.

To avoid rising credit costs compressing this spread, automakers began creating industrial banks, a unique type of state-chartered, federally-insured bank that allows non-financial companies to own them. Nissan Motor Acceptance Co. applied to the FDIC for a Salt Lake City bank to serve its 1,200 dealership network, offering lower funding costs than deposits.

The FDIC approved Ford Credit Bank and GM Financial Bank in January 2026, but Nissan's application was denied, citing financial challenges in 2026.