Nissan needs a new investor to survive past 2025
Nissan is scrambling to find steady financing after Renault, its partner of 25 years, plans to divest its interest in the Japanese company.
According to the Financial Times, Nissan is seeking a “long-term, steady shareholder like a bank or insurance group” as Renault looks to untangle itself from an alliance formed in 1999, as the Japanese automaker faced bankruptcy at the turn of the century.
Last year, Renault reduced its 43.3% voting stake in Nissan to 15%, and Nissan took a 15% voting stake in Renault. Nissan also owns 34% of Mitsubishi, which it reportedly plans to reduce to 24% once Renault exits.
“We have 12 or 14 months to survive,” a senior official close to Nissan told the FT. “This is going to be tough – and in the end, we need Japan and the US to be generating cash.”
In March, Nissan and Honda announced a partnership to develop electric vehicle technology and auto intelligence, in the face of increasingly competition from Elon Musk’s Tesla and Chinese manufacturer BYD.
“Emerging players are very aggressive and are making inroads at incredible speed,” Nissan CEO Makoto Uchida told media in April when announcing the alliance.
“We cannot win the competition as long as we stick to conventional wisdom and a traditional approach.”
The Financial Times suggests that Mitsubishi may also become involved in a three-way Japanese alliance.
“We are currently exploring all possibilities and are eager to co-operate in areas where we can leverage our strengths,” a Mitsubishi spokesman told the FT, while Nissan is considering “all options” in regards to future shareholders.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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