Nissan only has 12 to 14 months left to survive

The Japanese automaker should have only 12 to 14 months left to overcome the worst of the crisis. How could this happen?

Markus Abrahamczyk/t-online

Japan car crisis: Carmaker Nissan is desperately seeking a rescue after disastrous quarterly results and the exit of partner Renault. One senior manager put it succinctly: “We have 12 or 14 months to survive.”

Honda may join Nissan.Image: trapezoid

Auto giants looking for partners

One thing is clear: Without strong partners, Nissan has no chance. Chief Executive Makoto Uchida is urgently looking for a savior to stabilize the company. Funds, banks, insurance companies – even rival Honda are under discussion. But Honda's entry could ultimately jeopardize an already fragile alliance with Renault. Renault itself has so far remained silent.

The recent entry of notorious fund Effissimo Capital Management from Singapore has been a breath of fresh air. Effissimo is known for getting companies like Toshiba back on track through rigorous restructuring. Stocks reacted positively, but entry could also mean a steep rate cut.

Serious problems remain

Nissan is facing a number of construction problems: its model range is outdated, sales in China are down 14%, and it lacks competitive hybrid models in the important U.S. market. While rivals Toyota and Honda have been modernizing their key models in North America, Nissan's last major overhaul was in 2021. “This was clearly a misjudgment by management,” said James Hong, an analyst at Macquarie Securities Korea.

Makoto Uchida: Nissan CEO plans to launch 27 electric models by 2030 – a move that, for critics, comes too late.Image: trapezoid

In addition, Uchida's ambitious plan to launch 27 electric models by 2030 still lacks billions of dollars in investment. That raises questions: Japan expert Amir Anvarzadeh of Asymmetry Advisors thinks Nissan has little chance. His conclusion: “There is no way to save the company without a miracle.”

In early November, due to declining sales in China and the United States, Nissan announced that it would lay off 9,000 employees and reduce global production capacity by 20%. The group also cut its profit forecast for this year by 70%. But pressure is mounting: Possible U.S. tariffs pose an additional threat going forward.

Nissan's fate will be decided over the next twelve months. Without strong partners, there is a risk of failure. Whether Honda, investors or Miracle: time is of the essence.

Sources used:

Swisscom has received the order from Swissmedic. The telecommunications group will provide IT services to the Institute for Therapeutic Products until 2039. Orders totaled CHF 185 million, according to a statement on Monday.