The situation the Japanese manufacturer finds itself in at the moment does not seem to be optimal, and the latest reports say that Nissan has about a year left to turn things around.
Currently, a large part of the automotive industry is facing problems. Manufacturers react differently to obstacles generated by stricter emissions rules, declining interest in electric cars or the global post-pandemic economic situation. right Engine1recent reports say Nissan has about a year left to save itself.
Nissan’s current situation is not what the Japanese manufacturer would have wanted. Dealers are selling cars at a loss, production has slowed and the company recently cut thousands of jobs and sold a third of its Mitsubishi shares. But all these measures seem to have come too late and represent too little for a manufacturer facing such problems.
Nissan needs to act fast
Two unnamed Nissan executives said the company had “12 to 14 months to survive.” “This is going to be hard. And finally, we need Japan and the US to generate cash,” they said.
Nissan is reportedly looking for a new long-term investor, such as a bank or large insurance group, to replace some of the Renault shares it is no longer holding. The company also did not rule out the possibility of its rival Honda taking a majority stake in the company, saying “all options” are being considered. Nissan has already signed a partnership with Honda and Mitsubishi through which the three manufacturers engage in the development of new electric models.
Weak sales in the U.S. and Japan prompted Nissan to cut more than 9,000 jobs earlier this month while cutting production by nearly 20 percent. Nissan’s operating profit fell 85% in the third quarter. The company estimates losses of around 58 billion euros.
Source: www.promotor.ro
