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Nissan is searching for an anchor investor to navigate a crucial year as Renault reduces its stake in the Japanese carmaker, reported the Financial Times, citing sources.
This move comes as Nissan finalises a new electric vehicle (EV) partnership with Honda.
A senior Nissan official said: “We have 12 or 14 months to survive.”
Nissan is considering various options, including Honda purchasing some of its shares, amidst restructuring efforts due to declining sales in China and the US.
The company is looking for a long-term, stable shareholder, such as a bank or insurance group, to replace part of Renault's equity.
People close to Renault mentioned that the French group might be open to selling some of its shares in Nissan to Honda as part of a restructuring of their 25-year-old alliance.
A stronger relationship between Nissan and Honda could be beneficial for Renault.
Nissan and Honda are enhancing their partnership to develop EVs and software technology due to pressure from Chinese competitors and uncertainty in the US after Donald Trump's re-election.
“This is going to be tough. And in the end, we need Japan and the US to be generating cash,” a senior official was quoted by the publication as saying.
Despite their collaboration, both companies have downplayed the possibility of a capital tie-up, with a Nissan insider describing Honda's stake acquisition as “a last resort.”
Nissan, holding a 34% stake in its smaller alliance partner Mitsubishi Motors, plans to reduce it to 24% as part of emergency turnaround efforts.
Nissan has declined to comment on the search for an anchor investor or the potential stake purchase by Honda.
However, it added: “The partnership with Honda is strategically very important, and we hope to accelerate the realisation of the results of our activities through regular progress at the management level of both companies.”
Similarly, Honda has not provided any comments.
Although Renault is not directly involved in the discussions, it may consider collaborating with Nissan, Honda, and Mitsubishi to develop EVs, responding to China's industry dominance.
Renault stated that there are no current discussions about a broader partnership but supports a “potential win-win between Nissan and Honda”.
Earlier this month, Nissan announced cost-cutting measures following weak financial results.
The company plans to reduce fixed costs by Y300bn yen ($1.95bn) and variable costs by Y100bn yen compared with FY2024 while maintaining healthy free cash flow.
To achieve this, Nissan will cut global production capacity by 20% and reduce its workforce by 9,000 from its current 133,000 employees.