Nissan’s countdown begins with 14 months left to reverse deficit-laden balance sheets

Japanese automaker Nissan is racing against time, with only 12 to 14 months to secure its survival amid mounting losses, production slowdowns and mass layoffs, according to a Nissan executive.

According to a report in the economy-based Financial Times, a senior Nissan executive stated, “We have 12 to 14 months to survive. It will be tough. In the end, we need to generate profits in the Japanese and U.S. markets.”

Senior company officials have painted a grim picture, stressing the urgent need to generate profits in core markets like Japan and the U.S.

A new anchor to replace Renault

As part of its survival strategy, Nissan is actively seeking an anchor investor to replace Renault, its previous long-time partner.

The company has emphasized that “all options are on the table,” including a potential deal with rival Honda.

The possibility of a Honda partnership comes as no surprise; Nissan recently entered a long-term collaboration with Honda and Mitsubishi to develop electric vehicles, strengthening ties between the automakers.

Analysts speculate that such a move could provide Nissan with the financial and technological boost it desperately needs.

Mounting challenges, losses

Sales in key markets like the U.S. and Japan have plummeted, forcing Nissan to lay off over 9,000 employees and reduce production by 20% earlier this month.

In the third quarter, the company’s operating profit plunged by a staggering 85%, while it recorded a net loss of 9.3 billion yen ($61.3 million).

As part of its restructuring plan, Nissan aims to save $3 billion through workforce and production cuts, but whether these measures will be enough remains uncertain.

Nissan’s survival now hinges on attracting a significant investor and restoring profitability in its key markets.

With time running out, the automaker faces the dual challenge of navigating its immediate financial crisis while laying the groundwork for long-term stability.