Things are not looking good at Nissan. Dealers are selling cars at a loss, production has slowed, and the company recently cut thousands of jobs and sold a third of its stake in Mitsubishi. Perhaps it was all too little too late after all.
A new report shows that the automaker's days are numbered. In an interview with the Financial Times, two unnamed Nissan executives said the company has just 12 to 14 months before it goes out of business for good.
The company is said to be looking for a new long-term investor, e.g. a fund, bank or large insurance group that would replace part of Renault's ownership stake. The company has also not ruled out the possibility of long-time rival Honda taking a majority stake in the company, saying that all options are on the table. Nissan recently signed a partnership with Honda (and Mitsubishi) for long-term electric vehicle development.
Renault is even considering selling part of its shares to Honda. The French automaker is reportedly looking to restructure its 25-year alliance with Nissan. An unnamed source at the company says that a more extensive partnership between Honda and Nissan would be more than welcome for the French automaker.
Due to poor sales in the US and Japan, Nissan cut more than 9.000 jobs earlier this month while cutting production by nearly 20 percent. Nissan's operating profit fell 85 percent in the third quarter, and the company posted a net loss of ¥9,3 billion (€58,3 million at today's exchange rate). The company estimates that by reducing the number of jobs and reducing production, it will save 3 billion euros during the restructuring.
