Iconic car brand ‘on brink of collapse’ as bosses warn company has ‘just 12 months to survive’
ONE of the world’s largest car manufacturers could go under within 12 months if it doesn’t receive support, according to company insiders.
The firm is looking to sure up its future by growing a partnership with its former rival after the reported collapse of a three-way alliance.
Nissan was one-third of a strategic deal with Mitsubishi and Renault to share financial backing and expand all their markets in Europe, Japan and the US.
The agreement dates back to 1999 but now could be on the brink of collapse.
A report from the Financial Times cites two anonymous “senior officials” at the firm suggesting that Renault is looking to reduce its financial stake in the Japanese carmaker.
The withdrawal of funding means, according to the same sources, that Nissan could require support from the Japanese or US governments within the next year just in order to stay afloat.
One of the officials said: “One of the officials said: “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.”
Nissan has already cut 9,000 jobs across its global operation, while its CEO Makoto Uchida took a 50% pay cut in an economy drive.
The business is working through an emergency recovery plan, which will see it cut output by 20% and slash around £2bn in costs.
Its struggles have partly been blamed on the lack of a strong hybrid lineup, which has helped rivals like Toyota and Honda through the global collapse in EV sales.
In a press conference earlier this month, Mr Uchida said: “This has been a lesson learned and we have not been able to keep up with the times.
“We weren’t able to foresee that hybrid electric vehicles and plug-in hybrids would be so popular.”
Speaking of Honda, Japan’s second-largest carmaker could be a key part in the Nissan rescue plan.
The two companies are reportedly looking to establish much closer links going forward.
However, another source within Nissan said that the larger company buying a stake in its smaller partner remains a “last resort”.
It comes after Stellantis announced the closure of its Vauxhall factory in Luton, which will risk over 1,000 jobs, with bosses blaming Net Zero targets.
SunMotors has contacted Nissan for comment.