Things are looking bleak for Nissan as financial pressures mount. In an exclusive report by the Financial Times, two unnamed Nissan executives have painted a stark picture of the company’s survival prospects, stating that Nissan has “12 to 14 months to survive.” With shrinking profits, slow sales, and strategic realignments, the Japanese automaker is scrambling to find solutions to stay afloat.
Nissan’s struggles are no secret. Dealers in key markets like the United States and Japan are selling cars at a loss, and production has slowed dramatically. Earlier this year, the company cut over 9,000 jobs and slashed production by 20%. Despite these efforts, Nissan’s financial outlook remains dire. In the third quarter of this year, the automaker reported an operating profit decline of 85%, culminating in a net loss of ¥9.3 billion (approximately $60.1 million). The company hopes to save $3 billion through aggressive cost-cutting measures, but whether this will be enough remains uncertain.
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As part of its survival strategy, Nissan is reevaluating its long-standing alliance with Renault, which currently holds a significant equity stake in the company. According to Financial Times (subscription required), Renault is considering selling part of its stake in Nissan to Honda, potentially paving the way for a more robust Honda-Nissan collaboration. Renault insiders suggest that such a partnership could benefit all parties involved, with one source describing a Honda-Nissan alliance as “only positive” for the French automaker.
Honda’s potential involvement comes amid Nissan’s recent decision to join forces with Honda and Mitsubishi on long-term electric vehicle (EV) development. This cooperation underscores the automaker’s commitment to future technologies, even as it battles short-term challenges.
The uncertainty surrounding Nissan’s future has led the company to explore a variety of solutions. Beyond a deeper partnership with Honda, the automaker is also reportedly seeking a long-term investor, potentially a bank or large insurance group, to replace some of Renault’s equity holdings. While the details remain speculative, Nissan executives emphasize that “all options” are being considered to secure the company’s survival.
Nissan’s woes underscore the broader challenges facing traditional automakers in an industry undergoing rapid transformation. From the shift to electrification to supply chain disruptions, legacy brands are being forced to adapt—or risk obsolescence. For Nissan, the next 12 to 14 months will be pivotal. A Honda takeover, while unprecedented, could inject much-needed capital and strategic direction. However, whether such a move would come in time to stabilize the company is another question entirely.
As Nissan navigates this precarious period, the auto industry will be watching closely. Could this be the start of a new chapter for the automaker, or the beginning of the end for one of Japan’s most iconic brands? One thing is clear: the clock is ticking.
