Nissan On The Brink Of Collapse As Official Claims Automaker Has Just 12 Months To Survive

Nissan on the brink of collapse as official claims Japanese company has 12 or 14 months to survive, according to Financial Times.

Anonymous senior officials claim it needs financial backing from the Japanese or US Govt to make it through 2025.

As part of cutting measures, Nissan had in October announced it would axe 9,000 jobs, reduce global manufacturing capacity by 20%.

Japan’s third-largest carmaker, Nissan, reportedly has only 12 to 14 months to survive as two anonymous ‘senior official’ claim it needs financial backing from the Japanese or US governments just to make it through 2025.

As part of cutting measures, Nissan had in October announced it would axe 9,000 jobs and 20 per cent of its global manufacturing capacity, amid a sales slump in China and the US.

The Financial Times quoted a ‘senior official’ at Nissan as saying :

“We have 12 or 14 months to survive. This is going to be tough. And in the end, we need Japan and the US to be generating cash.”

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Nissan’s head of manufacturing Hideyuki Sakamoto told a news conference last month:

“Globally, we currently have 25 vehicle production lines. Our current plan is to reduce the operational maximum capacity of these 25 lines by 20 per cent.”

“One specific method for this is to change the line speed and shift patterns, thereby increasing the efficiency of operational personnel.”

Nissan CEO Makoto Uchida attributed the company’s struggles to its failure to embrace hybrid powertrains, in contrast to rivals Toyota Motor and Honda.

CEO Mr Uchida told reporters:

“This has been a lesson learned and we have not been able to keep up with the times. We weren’t able to foresee that hybrid electric vehicles and plug-in hybrids would be so popular.”

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