The company might sell a majority stake to Honda
Nissan is facing serious challenges. Dealers are selling vehicles at a loss, production has slowed, and the company recently cut thousands of jobs and sold a third of its Mitsubishi stake. However, these efforts may have come too late.
A new report indicates the automaker’s future is uncertain. In an interview with the Financial Times, two anonymous Nissan executives revealed the company has just “12 to 14 months to survive.” They added, “This is going to be tough. Ultimately, we need Japan and the US to generate cash.”
Nissan is reportedly seeking a new long-term investor, such as a bank or major insurance group, to replace part of Renault’s equity holdings. The company has also left the door open to the possibility of longtime rival Honda acquiring a majority stake, stating that “all options” are under consideration. Recently, Nissan partnered with Honda and Mitsubishi for long-term EV development.
Renault is even exploring the option of selling some of its shares to Honda as part of a potential restructuring of its 25-year alliance with Nissan. According to an unnamed source, a stronger Honda-Nissan partnership would be “only positive” for the French automaker.
Sluggish sales in the US and Japan led Nissan to lay off over 9,000 employees earlier this month while reducing production by nearly 20%. In the third quarter, Nissan’s operating profit plunged by 85%, resulting in a net loss of ¥9.3 billion ($60.1 million at the current exchange rate). The company anticipates saving $3 billion through these job and production cuts as part of its restructuring efforts.
