Nissan Execs Warn of Crisis, Survival Window 12–14 Months

Nissan is confronting a financial and operational crisis, with top executives warning that the company has only "12 to 14 months to survive" unless urgent measures are taken, according to unnamed sources cited by The Financial Times. The Japanese automaker is actively seeking a long-term anchor investor to partially replace Renault's reduced stake and stabilize its operations.

The long-standing Nissan-Renault alliance is undergoing a significant restructuring, with Renault reducing its ownership stake from 43% to 36%. This shift has prompted Nissan to explore alternative partnerships, including strengthened collaborations with Honda and Mitsubishi to accelerate the development of electric vehicles (EVs) and software technologies.

While discussions with Honda center on joint EV projects, a potential capital link between the two companies remains contentious. An insider referred to a possible Honda investment as "a last resort," highlighting Nissan’s hesitance to cede more control. However, Honda’s involvement could provide critical financial relief as Nissan struggles to compete in a market increasingly dominated by Chinese and US automakers.

“We need to generate cash in Japan and the United States. This will be challenging,” a Nissan executive told The Financial Times.

Global production declines further illustrate the crisis. October 2024 marked the fifth consecutive month of reduced output, while global sales dropped 3% year-on-year. Key markets such as China and Europe have been particularly challenging.

In China, where domestic brands dominate, Nissan sold only 435,603 units between January and August 2024. Similarly, in Europe, reliance on models like the Qashqai and Juke has not offset falling demand for other products, including the underperforming Ariya EV.

In the United States, traditionally one of Nissan’s strongest markets, the company has struggled to capitalize on growing consumer interest in hybrids and plug-in hybrid electric vehicles (PHEVs). Combined sales of the Nissan and Infiniti brands totaled just over 700,000 vehicles from January to August 2024, lagging behind broader market growth.

Amid these challenges, Mexico has emerged as a bright spot. In October, Nissan’s production in Mexico increased by 12% to 70,382 units, accounting for nearly a quarter of the company’s global output. The automaker has also exported approximately 300,000 vehicles from Mexico to the United States.

"We will closely monitor US trade policy and adjust our strategies accordingly," said Nissan CEO Makoto Uchida. While acknowledging Mexico’s critical role, Uchida warned that potential trade tariffs under the next US administration could affect future operations.

To address its financial challenges, Nissan recently announced plans to cut 9,000 jobs and reduce global manufacturing capacity by 20%. The company has also postponed new model launches and sold its shares in Mitsubishi as part of broader cost-cutting measures.