ONE of the world’s biggest carmakers could collapse within 12 months if it doesn’t get a boost, according to company insiders.
The company is looking to secure its future by developing a partnership with its former rival following the reported collapse of the three-way alliance.
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Nissan may have just a few months to secure financing or risk going out of business Credit: Getty
Nissan was one third of a strategic agreement with Mitsubishi and Renault to share financial support and expand all their markets in Europe, Japan and the US.
The agreement dates back to 1999, but may now be on the verge of collapse.
A Financial Times report cites two unnamed “senior officials” at the company who suggest that Renault is looking to reduce its financial stake in the Japanese automaker.
The withdrawal of funding means, according to the same sources, that Nissan could require support from the Japanese or US government within the next year just to stay afloat.
One of the officials said: “One of the officials said: “We have 12 or 14 months to survive.
“This will be difficult.
“And finally, we need Japan and the US to generate money.”
Nissan has already cut 9,000 jobs across its global operations, while its chief executive Makoto Uchida has taken a 50% pay cut in an economic crackdown.
The company is working on an emergency recovery plan, which will see production cut by 20% and around £2 billion in costs.
Its struggles are partly attributed to the lack of a strong hybrid lineup, which has helped rivals such as Toyota and Honda face a global decline in electric vehicle sales.
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At a press conference earlier this month, Mr. Uchida said: “This is a lesson learned and we have not been able to keep up with the times.
“We could not have predicted that hybrid electric vehicles and plug-in hybrids would be so popular.”
Speaking of Honda, Japan’s second largest automaker could be a key part of Nissan’s rescue plan.
The two companies reportedly want to forge much closer ties in the future.
However, another source inside Nissan said a larger company buying a stake in its smaller partner remains a “last resort”.
It comes after Stellantis announced the closure of its Vauxhall plant in Luton, which will put more than 1,000 jobs at risk, with bosses blaming Net Zero targets.
SunMotors has contacted Nissan for comment.
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Source: HIS Education