Nissan Open To Sell Company According CEO

Nissan’s radical restructuring plan is already in full swing: seven factories and two design studios are closing, and the workforce will be cut by 20,000 people. Before the measures take full effect in the coming years, Nissan is forecasting an annual net loss of $4.2 billion for the fiscal year ending March 31. That would follow a loss of $4.5 billion in the previous fiscal year.

In an interview with the Financial Times, managing director Ivan Espinosa openly admitted that his working days are chaotic: “There are so many things happening every morning that it’s scary.”

According to Motor1, between implementing a grueling cost-cutting program and revamping an aging product portfolio, Espinosa is also looking at the bigger picture and admits Nissan’s vulnerability: “It’s increasingly difficult for companies of our size to stay relevant in this environment. You have to stay open and flexible.”

As a reminder, talks with Honda ended about a year ago when discussions shifted from a potential merger of equals to what Nissan saw as a takeover attempt. The talks reportedly broke down after Honda proposed appointing most of the directors and the CEO of the combined company.

The head of Nissan now says that anything is possible. When asked if the company could one day be sold, Espinosa didn’t completely close the door: “Anything can happen in this crazy world.” The statement is controversial in itself and becomes even more open to interpretation when paired with his admission that Nissan is struggling to stay relevant on its own in such a competitive industry.

However, these comments should not be taken as a sign that Nissan is for sale. The Japanese automaker remains committed to standing on its own two feet. It aims to become more competitive by dramatically reducing the development time for an all-new model to 37 months, while subsequent models would only take 30 months.

Nissan’s long-term strategic partner Renault has gradually reduced its participation in this Japanese company. Currently, the French company owns 35.71 percent of Nissan, but only 17.05 percent directly, while the remaining 18.66 percent is held by a French fund of which Renault is a beneficiary. Instead of deepening cooperation with Nissan, Renault recently signed an agreement with Ford to develop and produce two electric vehicles that will carry the Blue Oval badge. The first of the two electric vehicles should arrive in 2028.

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