Nissan is reportedly facing a precarious financial situation, with urgent calls for a stable shareholder as its partner Renault aims to reduce its stake. A senior official close to the company warned, “We have 12 or 14 months to survive.” In a bid to stabilize its finances, Nissan is exploring partnerships, including a potential share purchase by Honda, which it recently teamed up with.
Renault has already decreased its stake in Nissan from 43.4% to below 36%, retaining a 15% voting stake, and indicated plans to continue this gradual reduction. Meanwhile, Nissan is also cutting its stake in Mitsubishi from 34% to 24%.
Sales have dropped significantly in the US and China, prompting Nissan to accelerate the launch of new energy vehicles, including hybrids and electric models in both markets. The company plans to cut global production capacity by 20% and lay off 9,000 workers as part of its restructuring efforts, following a staggering decline in operating profit for the first half of the fiscal year.
CEO Makoto Uchida stated that these measures are not indicative of a shrinking company but rather a restructuring for resilience and efficiency. Notably, he announced a 50% pay cut for himself and other executives.
Despite the challenges, Nissan remains committed to its alliance with Renault and has signed an agreement with Honda to explore further cooperation in electrification and product development. This collaboration aims to enhance synergies and create new business opportunities.
While there is speculation about a possible merger between Nissan and Honda, the companies are currently focused on complementary vehicle models and a shared software-defined vehicle platform.
The automotive landscape continues to shift, with Nissan striving to adapt and thrive amid significant challenges, looking towards Japan and the US for recovery.
