Nissan is facing a financial crisis, with dealerships selling cars at a loss, reduced production, and a series of job cuts, totaling more than 9,000 positions eliminated.
Additionally, the company sold one-third of its stake in Mitsubishi and reported an 85% drop in operating profit in the third quarter, resulting in a loss of $60.1 million. Nissan also reduced its production by around 20% in an attempt to restructure, expecting to save $3 billion through these measures.
Nissan executives have indicated that the company has only 12 to 14 months to recover, depending on cash generation in Japan and the United States. To help reverse the situation, the automaker is seeking a new long-term investor, such as a bank or insurance group, to replace part of Renault’s shares. Nissan has also not ruled out the possibility of its rival Honda taking a majority stake, considering “all available options.”
Meanwhile, Renault is considering selling part of its shares to Honda, restructuring the 25-year-old alliance with Nissan. Sources suggest that a larger partnership between Honda and Nissan could benefit Renault by improving the financial situation of the involved companies, especially with their recent partnership in the long-term development of electric vehicles.
Source: Motor1.com | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team