Nissan is facing a dire financial situation, with a senior executive predicting the company has just 12-14 months left unless there is a significant turnaround.
According to Carscoops, Nissan’s financial woes are deepening as the company’s business operations are not yielding positive results. The brand’s profit plummeted by 85% in the third quarter, resulting in a net loss of approximately $60.1 million.
The Japanese automaker has been forced to lay off over 9,000 employees and sell more than 30% of its shares to Mitsubishi in a bid to save around $3.1 million. Nissan has also repeatedly delayed new product launches in an attempt to improve its financial situation.
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In an interview with Financial Times, two anonymous Nissan leaders revealed that the company can only sustain itself for 12-14 months in the current situation. “Things are very difficult right now,” they said, “For us to continue, we need the Japanese and US markets to be profitable.”
The Japanese car manufacturer is reportedly seeking a new long-term investor, with Honda being the top contender. The two Japanese companies have previously collaborated on developing new electric vehicle models.
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Renault is also planning to sell its Nissan shares to Honda. The French company previously held 46% but has now reduced its stake to 40%. If the Japanese company were to buy back the remaining shares from Renault, it is likely that Nissan would become a subsidiary of Honda.
In August 2023, former Nissan CEO Carlos Ghosn predicted that Honda could acquire Nissan in the near future. This prediction came shortly after the two companies announced their joint venture to develop electric vehicles.
Currently, Nissan offers three models in Vietnam: the Almera (a B-segment sedan), Navara (a pickup truck), and Kicks (a B-segment hybrid CUV). However, these models have failed to capture the attention of consumers and often rank among the slowest-selling vehicles in their respective segments.
Thai Son (Tuoitrethudo)
The End of the Road for Nissan? Japanese Automaker in Dire Financial Straits, Needs Investor Bailout to Survive Beyond 12-14 Months
The automotive industry was shaken by the news of Nissan’s crisis, which came just weeks after the company reported a staggering 9 billion yen ($60.3 million) loss. This has prompted a difficult decision to reduce their global workforce by 9,000 jobs and decrease production by 20% worldwide.
