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Japanese automaker Nissan Motor Co is urgently seeking a new anchor investor as the company navigates a state of grave financial crisis, dubbed “emergency mode.” A Nissan official warned that the company has only 12 to 14 months to implement these changes and ensure its survival, Finacial Times reported. Nissan’s financial crisis is compounded by Renault’s decision to reduce its stake in the company. Renault, a longtime partner in the Renault-Nissan-Mitsubishi alliance, is realigning its strategy and has been gradually selling parts of its Nissan holdings to focus on its own EV development.
Sources close to the negotiations have revealed that Nissan is seeking a stable, long-term investor, such as a bank or insurance company, to partially replace Renault’s equity stake. This development comes as Nissan finalises the details of its new electric vehicle partnership with Honda, a major competitor in the industry. “We have 12 or 14 months to survive. This is going to be tough. And in the end, we need Japan and the US to be generating cash,” a senior official told FT.
Responding to the report, Tesla’s CEO Elon Musk said, “Many car companies won’t make it.”
See the tweet here:
Many car companies won’t make it https://t.co/cCsxvbH8As
— Elon Musk (@elonmusk) November 27, 2024
Nissan also cut more than 9,000 jobs earlier this month, while simultaneously slashing production by nearly 20%.
A spokesperson from Nissan Motor India told NDTV, “As a policy, we do not comment on speculatory reports. Nissan remains committed to its India operations, dealers, partners, and customers. We remain on track for our plan announced earlier this year at the launches of the Nissan X-TRAIL and New Nissan Magnite.”
Notably, the Renault-Nissan partnership, formalized in 1999, was established to combine resources and expertise, creating one of the largest automotive alliances globally. Renault initially acquired a significant stake in Nissan to rescue it from financial distress, enabling shared technology, platforms, and cost efficiencies. Over the years, the alliance expanded to include Mitsubishi. However, recent years have seen tensions, especially after Renault reduced its stake in Nissan.
