Things aren't looking good at Nissan. Dealers are selling cars at a loss, production has slowed, and more recently, the company cut thousands of jobs and sold a third of its stake in Mitsubishi. But it all may have been too little too late.
A new report suggests that the automaker's days are numbered. In an interview with the Financial Times, two unnamed Nissan executives said the company has "12 to 14 months to survive." "This is going to be tough. And in the end, we need Japan and the US to be generating cash," they said.
The company is reportedly looking for a new long-term investor, such as a bank or large insurance group, to replace some of Renault's equity holdings. The company also hasn't ruled out the possibility of longtime rival Honda taking a majority stake in the company, saying "all options" are on the table. Nissan recently signed a partnership with Honda (and Mitsubishi) for long-term EV development.
Renault is even considering selling a portion of its shares to Honda. The French automaker is reportedly looking to restructure its 25-year alliance with Nissan. An unnamed source within the company says that a larger Honda-Nissan partnership would "only be positive" for the French automaker.
Slow sales in the US and Japan prompted Nissan to cut more than 9,000 jobs earlier this month, while simultaneously slashing production by nearly 20 percent. Nissan's operating profit dropped 85 percent in the third quarter, with the company earning a net loss of ¥9.3 billion ($60.1 million at today's exchange rate). The company estimates it will save $3 billion by cutting jobs and production as it attempts to restructure.
