New report says Nissan is in “emergency mode” and may not last more than a year without new investors
Nissan has made some of the most iconic vehicles of all time. However, the company has struggled lately with sales and profits. Naturally, this has led Nissan to make some drastic choices, including slashing jobs, delaying new models, and more. Of course, it still has some of the best cars and SUVs to buy, but the company’s dire situation just got worse as Renault plans to reduce its stake, leaving Nissan seeking a new investor.
Nissan vehicles are still great, but the sales don’t say so
Sadly, Nissan vehicles have seen a decline in popularity in recent years. Sure, the Rogue is one of the best-selling SUVs. Additionally, the Sentra is one of the best cars to buy for those wanting an affordable sedan. Still, it’s not enough to keep the automaker afloat. According to CarScoops, things are worse for Nissan than most people realized. An “unnamed senior Nissan official” recently spoke to Financial Times and said, “We have 12 or 14 months to survive.”
The Senior Nissan official continued, “This is going to be tough. And in the end, we need Japan and the US to be generating cash.” Of course, these dire straights aren’t only due to the poor sales for Nissan vehicles. Instead, it’s also because Renault is planning to get rid of its 40 percent stake in the company, which means it needs a new investor.
Of course, Nissan has already said that it’s in “emergency mode,” which it plans to deal with by slashing jobs and delaying the production of new vehicles. However, hearing the rumor that the company could only have 12 to 14 months left without an investor is horrible news. If Nissan were to go away, it would have a devastating impact on the automotive industry as a whole. Of course, there would be other measures, such as bankruptcy, before we saw a complete end to Nissan. Still, this is horrifying news.
Of course, there is still hope for Nissan and its vehicles. There are reports that Honda could become an investor in the company. Of course, the companies already have a partnership, so this could make sense.
Check out this recent article for more reading on the state of Nissan.
