So, is this the end? Things are not looking good for Nissan, as the company laid off approximately 9,000 employees, representing 6.7% of its global workforce. The carmaker also announced cutting production capacity by 20% due to a decline in sales, mainly in the US and China.
Meanwhile, it has sold its shares in Mitsubishi, but it could be too little too late. According to a report by Finance Times, two unnamed executives have said that “the company has 12 to 14 months to survive,” calling the situation tough and seeking assistance from Japan and the US to generate cash.
The operating profit of Nissan dropped 85% in the third quarter, with the company earning a net loss of $60.1 million. The job cuts will save Nissan approximately $3 billion.
New Investors
As per the media reports, Nissan is looking for a new long-term investor, i.e., a bank or a large insurance group, to replace some of Renault’s equity. Most importantly, the company has not ruled out the rival automaker, Honda, with which Nissan is already working on the joint development of vehicle electrification and software technologies as part of a partnership announced earlier this year.
Nissan already considers Renault a major shareholder, as the latter saved the former from near bankruptcy in 1999. However, Renault has started downsizing its stake in Nissan over the past several months, taking it to only 36% from 43%.
According to some sources, Renault would be open to selling some of its shares in Nissan to Honda, as this would ultimately benefit Renault as well. “The Nissan-Honda partnership would only be positive for the French automaker,” the source told media.
Nissan’s lineup has suffered over the years mainly due to limited model redesigns, although it has been slowly changing with planned introductions like the redesigned 2025 Murano and 2025 Armanda/Patrol. Its partnership with Honda will help the company expand its EV lineup.
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