Nissan Has “12-14 Months to Survive,” Two Unnammed Execs Say
Nissan is in full crisis mode. Maybe not in Canada, where sales (including luxury brand Infiniti’s) were up 14.75 percent after nine months in 2024, but certainly on a global level.
Following a disastrous third quarter in which operating profits dropped 85 percent and resulted in a net loss of ¥9.3 billion (around $80 million CAD), the Japanese automaker announced earlier this month that it would lay off 9,000 employees worldwide in the short term, adding to the numerous job cuts from the past few years. Production, meanwhile, will be slashed by approximately 20 percent.
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Nissan desperately needs money. The actions above are expected to save close to $4 billion CAD. Also in recent weeks, Mitsubishi has agreed to buy back about a third of Nissan’s 34-percent stake in the company. However, that won’t be nearly enough. In fact, Nissan’s days might be numbered.
Two unnamed executives have told the Financial Times that Nissan has 12-14 months to survive, adding: "This is going to be tough. And in the end, we need Japan and the U.S. to be generating cash."
All options are reportedly on the table, including seeking a new investor such as a bank or large insurance group to replace some of Renault's equity holdings. Another possibility is calling on Honda to take a majority stake in its rival, which isn’t as far-fetched as it sounds. The two (along with Mitsubishi) recently entered a partnership for long-term EV development.
Inevitably, the 25-year alliance with Renault is bound to change significantly. And what about that strategic plan called “The Arc” that will see Nissan launch 30 new models globally by 2027 including seven in North America? We’ll have to wait to find out. Bas du formulaire
As a reminder, 2025 is a huge year for Nissan with all-new Kicks, Murano and Armada joining the lineup, plus an updated Frontier. Oh, and a Rogue PHEV is coming sometime in 2025, too.