Nissan, the Japanese car manufacturing giant, is reportedly facing a severe financial crisis, with insiders warning that the company may only have 12 months to survive.
The automaker, which employs 7,000 people in the UK and 17,000 in the US, has launched an aggressive cost-cutting program following substantial losses.
Last month, Nissan announced plans to eliminate 9,000 jobs and reduce its global manufacturing capacity by 20 percent. These measures aim to slash costs by $2.6 billion (£2 billion) in the current fiscal year, amid declining sales in China and the US, its largest markets.
In an effort to stabilize the firm, Chief Executive Makoto Uchida has taken a 50 percent pay cut, while Chief Financial Officer Stephen Ma is stepping down.
However, industry insiders have expressed doubts about the effectiveness of these steps, citing Nissan’s struggle to compete with rivals that have successfully capitalized on the growing demand for hybrid vehicles. The challenges facing Nissan are compounded by uncertainty surrounding its strategic alliance with Mitsubishi and Renault.
Established in 1999 to cover European, Japanese, and US markets, the partnership appears to be faltering. Reports suggest Renault is considering reducing its financial stake in Nissan, a move that could leave the firm in need of government intervention to stay afloat.
According to two senior Nissan officials who spoke anonymously to the Financial Times, the company might require financial support from Japanese or US authorities in the coming year to avoid collapse.
Get instant and latest news updates via our WhatsApp Community, X/Twitter, or Google News online channel.