Automobile manufacturer Nissan reportedly is on the verge of collapse within the next 12 months.
This from 100percentfedup.com.
According to the Daily Mail:
[T]he Japanese automaker has suffered heavy losses and will attempt to cut costs.
Mario Nawfal, founder and CEO of (International Bank of Commerce) IBC Group, wrote:
Nissan’s crashing US and Japan sales forced 9,000 job cuts, a 20% production slash, and an 85% profit nosedive. The automaker lost $60M last quarter, sold part of its Mitsubishi stake, and now seeks new investors or a Honda partnership.
Further:
Renault may cut ties, reshaping their 25-year alliance. Nissan eyes $3B in cuts and EV development to escape disaster.
🚨 NISSAN: WE HAVE 12 MONTHS TO TRY TO SURVIVE
Nissan's crashing US and Japan sales forced 9,000 job cuts, a 20% production slash, and an 85% profit nosedive.
The automaker lost $60M last quarter, sold part of its Mitsubishi stake, and now seeks new investors or a Honda… https://t.co/fZ5ycXaZZj pic.twitter.com/b6enJQWiF2
— Mario Nawfal (@MarioNawfal) November 27, 2024
Daily Mail reported:
Chief executive Makoto Uchida is taking a 50 per cent pay cut and it has now been reported that chief financial officer Stephen Ma is stepping down.
But insiders fear the moves may not be enough as Nissan struggles to stay competitive with rivals who have pushed ahead more successfully with popular hybrid cars.
The warnings come as a strategic deal signed with competitors Mitsubishi and Renault back in 1999, covering European, Japanese and US markets, could be ending.
Two anonymous ‘senior officials’ at Nissan have been quoted by the Financial Times as saying that Renault is now looking at reducing its financial stake in Nissan.
That could leave Nissan requiring cash backing from the Japanese or US governments over the next year to remain in business, according to the report.
NISSAN FACES IMMINENT COLLAPSE
Nissan is in serious trouble, with dealers selling cars at a loss and production slowed. The company has cut over 9,000 jobs and reduced production by nearly 20%. Executives warn that Nissan has only 12 to 14 months to survive.
They are seeking… pic.twitter.com/c6FFn7YfnY
— Business Explainer (@BuzinessX) November 28, 2024
BREAKING: Multiple @Nissan Executives Say The Automaker Only Has "12 To 14 Months To Survive" & May Sell To @Honda
Nissan Cut More Than 9,000 Jobs This Month & Slashed Production By Nearly 20%. pic.twitter.com/A3EJltfhYP— John Basham (@JohnBasham) November 27, 2024
From The Sun:
Its struggles have partly been blamed on the lack of a strong hybrid lineup, which has helped rivals like Toyota and Honda through the global collapse in EV sales.
In a press conference earlier this month, Mr Uchida said: ‘This has been a lesson learned and we have not been able to keep up with the times.
‘We weren’t able to foresee that hybrid electric vehicles and plug-in hybrids would be so popular.’
Speaking of Honda, Japan’s second-largest carmaker could be a key part in the Nissan rescue plan.
The two companies are reportedly looking to establish much closer links going forward.
However, another source within Nissan said that the larger company buying a stake in its smaller partner remains a ‘last resort.’
Final thoughts: I owned a Nissan 260-Z nearly fifty years ago and a Nissan king-cab pickup nearly thirty years ago, but for decades now I have supported the traditional American automakers.
