A new Financial Times report reveals details regarding Nissan's challenging situation.
Recently, Japan's third-largest automaker laid off thousands of workers and reduced production by 20%. Nissan's operating profit fell by 85% in the third quarter, with the company reporting a net loss of over $60 million.
Nissan is currently seeking a primary and long-term partner, as its long-time associate Renault divests its stake in the business, in hopes of securing assistance to survive the upcoming year (a bank or insurance group).
“We have 12-14 months to survive,” said a senior official close to Nissan.
Nissan does not rule out the possibility of Honda purchasing a stake in the company, considering “all options.” The companies have intensified discussions on partnership for the development of electric vehicles and software amidst strong competition from Chinese rivals and uncertainty in the U.S. following Donald Trump's re-election as president.
Nissan declined to comment on its search for a key investor and the potential sale of a stake to Honda, but added:
“A partnership with Honda is strategically important, and we hope to accelerate the implementation of our results.”
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