Nissan faces significant financial challenges and an uncertain future, according to reports, as it has just over a year to find its next key investor.
If Nissan does not do so, its future is at risk. Nissan could, however, recover and return to profitability by securing strategic partnerships and restructuring its operations.
Sales are declining, financial losses are mounting, and Nissan is undergoing restructuring efforts. Renault-Nissan-Mitsubishi is undergoing changes, and Nissan's stock and market cap have suffered.
Since Chinese and American sales have declined sharply, the company has declared "Emergency Mode".
This has led to a 9.3 billion yen (A$94.38 million) loss in 2024.
Nissan has announced plans to cut 9,000 jobs, reduce production capacity, and delay upcoming model launches.
The Renault-Nissan-Mitsubishi Alliance, which has been a cornerstone of Nissan's strategy since 1999, is restructuring.
Renault has reduced its Nissan stake from 43% to 36% in 2023. Nissan has bought back 5% of Renault's shares, aiming for a 15% cross-holding between the two companies.
Nissan has also reduced its Mitsubishi stake from 34% to 24% to raise funds.
The company structure is also changing as Nissan explores new investment options. There are reports that Honda might step in as an additional investor to stabilise Nissan.
This potential partnership is seen as a last resort, but it could provide the necessary financial support to keep Nissan afloat.
As at 12 pm (AEDT), Nissan Motor Co., Ltd. (NSANY) stock price was US$4.90. It's intraday market capitalisation was $8.96 billion.