Nissan, a stalwart of the Japanese automotive industry, finds itself at a critical juncture as it grapples with financial pressures, market challenges, and a rapidly evolving industry landscape. Recent reports have cast doubt on the company's long-term viability, prompting a closer examination of Nissan's current situation and future prospects.
Financial Concerns:
- Senior officials warn of only "12 or 14 months to survive"
- Operating profit plunged 85% year-on-year
- Net loss of ¥9.3 billion ($92.5 million) reported in a recent quarter
Strategic Measures:
- Plans to cut 9,000 jobs globally
- Reducing global production capacity by 20%
- Seeking new long-term investors to replace Renault's reduced stake
Market Challenges:
- Declining sales in crucial markets like China and the US
- Struggling to compete in the EV and hybrid markets
- Dealer profits in the US down 70% over the past year
Alliance Restructuring:
- Renault reducing its stake in Nissan from 43.4% to under 36%
- Nissan reducing its stake in Mitsubishi from 34% to 24%
Future Plans:
- Accelerating introduction of new energy vehicles in China and US
- Exploring partnership with Honda for EV development
While Nissan faces significant headwinds, the company is implementing aggressive strategies to address its challenges. The coming year will be pivotal in determining whether these measures can revitalize Nissan's position in the global automotive market and secure its future in an increasingly competitive and technologically driven industry.
