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Days are numbered: Nissan could go out of business in next 12-14 months, — Financial Times

Published by Kateryna Danshyna

New Financial Times report reveals details about Nissan’s predicament.

Recently, Japan’s third largest automaker dismissed thousands of employees and reduced production by 20%. Nissan’s operating profit fell by 85% in the third quarter, and the company’s net loss amounted to more than $60 million.

The Japanese automaker’s longtime partner Renault is selling its stake in the business, so Nissan is currently looking for a major and long-term partner to help it survive the year (a bank or insurance group).

«We have 12-14 months to survive,» said one of the senior officials close to Nissan.

Nissan does not rule out that Honda will buy back some of its shares, considering «all options». The companies have intensified talks on a partnership to develop electric vehicles and software amid strong pressure from Chinese competitors and uncertainty in the United States after Donald Trump’s re-election as president.

Nissan declined to comment on the search for a major investor and the possibility of Honda buying a stake in the company, but added:

«The partnership with Honda is strategically important, and we hope to accelerate the realization of our business results through regular progress».