Nissan Needs Money, Fast
Nissan is teetering on the brink, with executives signaling that the company has 12 to 14 months to secure a stable path forward without new investment.
As part of its "emergency mode," the Japanese automaker is implementing cost-cutting measures, including reducing its global workforce by 9,000 positions, trimming 20% of its manufacturing capacity, selling its stake in Mitsubishi, and delaying the rollout of some planned models. The situation is compounded by Renault’s decision to reduce its shareholding in Nissan, dropping below 40% as the French automaker continues to divest.
Meanwhile, Honda has emerged as a key collaborator, with the two automakers working together on electric vehicle development. Speculation remains about whether Honda might increase its involvement, potentially acquiring a significant stake in Nissan. Former Nissan CEO Carlos Ghosn previously suggested such a scenario could manifest as a "disguised takeover" of Nissan and Mitsubishi by Honda. According to the Financial Times, Nissan has not ruled out having Honda buy some of its shares.
A senior executive stated that the company must urgently generate cash flow from its key markets in Japan and the United States to stay afloat. New models like the Murano and Armada have recently come online, but dealers are still struggling to move products as Nissan lags behind rivals in terms of electrification and, particularly, hybridization. Nissan officials confirmed the Rogue PHEV would arrive sometime next year, but by then, it might be too late.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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Nissan shot themselves in the foot with the CVT in the '10s. I owned a 2014 Pathfinder that was essentially a piece of junk because of the transmission. I remember waayyy back in the '80s and '90s when Nissan was at the top of the quality and reliability standings with Toyota and Honda. Too bad they couldn't keep up today. I wouldn't buy one now if it was 50% off the MSRP.