2 unnamed Nissan execs. say the company has “12-14 months to survive”

Last updated: Nov. 27, 11:12 a.m. ET

If Nissan can’t secure a key investor, the automaker’s days may be numbered.

Driving the news: The automaker has been struggling to make ends meet after profits fell 85% in the first half of 2024 — largely tied to weaker performance in North America. And new reports suggest the company’s financial challenges may be insurmountable.

• According to reporting by the Financial Times, anonymous executives claim the company has “12 to 14 months to survive.”

• “This is going to be tough. And in the end, we need Japan and the U.S. to be generating cash,” one of the source said.

Zooming in: While the company says it is looking at “all options” to overcome its difficulties, it may find a savior in Honda, which is reportedly considering a majority stake in Nissan.

• Honda has already entered into an alliance with Nissan alongside Mitsubishi to build electric vehicles.

• Renault, who owns a stake in the troubled Japanese automaker, has made it clear that it supports Honda taking more ownership in the company.

Looking ahead: Nissan is also expected to cut production in the U.S. by 17% this year and has issued a profit warning for shareholders. It has also cut 9,000 jobs this month in an effort to balance its budget.

Worth noting: Nissan has elected not to comment publicly on the matter — calling the report “speculation.”

This is a developing story. Please check back for updates.

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