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Nissan is navigating a pivotal 12 months, seeking a long-term investor to stabilize its operations amid declining sales and restructuring efforts. With Renault reducing its stake, Nissan is exploring partnerships, including a potential capital tie-up with Honda, to bolster its electric vehicle strategy and global competitiveness. This move reflects broader industry shifts as automakers collaborate to address EV demand and competition from Chinese manufacturers. The outcome could redefine survival strategies in the evolving automotive sector.

Two weeks ago I informed about #Nissan being under severe pressure: they lay off 9'000 people and have production cuts in the #USA by up to 20%. Now, a senior Nissan official said: “We have 12 or 14 months to survive.” The company is in deep #trouble and urgently needs an #investor. Whether investors can be convinced by the crumbling sales structure e.g. in South-East Asia, particularly in #Thailand, where they have fired 80% of the staff, is questionable. Other Japanese #carmanufacturer-s, too, face headwinds globally. #Honda, who was mentioned as possible partner or investor to Nissan, faces dropping sales also since they have no competitive #BEV-s in their line-up. As I said for many years, #automotive will face a fall-out until 2030. https://lnkd.in/eQtSp4df

Nissan: Rise, Crisis, and the Battle for the Future The recent history of Nissan is marked by moments of glory and profound challenges that have placed the automaker at a crossroads. Once a symbol of innovation and recovery, the company now faces a scenario of uncertainties, with rumors even suggesting a possible closure. The Rescue in the 1990s In the 1990s, Nissan faced severe financial difficulties, accumulating debts exceeding $20 billion. The company was on the brink of bankruptcy when, in 1999, Renault acquired a controlling stake and brought Carlos Ghosn as CEO. The stakes were high, but Ghosn did not disappoint. He led an ambitious restructuring, implementing cost cuts, reorganizing production, and investing in strategic markets. The Golden Years Under Ghosn’s leadership, Nissan transformed itself. Iconic models such as the Nissan Leaf, a pioneer among electric vehicles, and an agile approach in emerging markets brought the company back into the spotlight. By the mid-2000s, Nissan boasted profit margins exceeding 9%, a rare achievement in the automotive industry. The Renault-Nissan Alliance, later including Mitsubishi, became a global force, combining scale and innovation. The Post-Ghosn Crisis The year 2018 marked an abrupt turning point. Ghosn’s arrest in Japan on allegations of financial misconduct triggered an internal crisis that exposed deep divisions within the company’s leadership. Ghosn’s departure left Nissan without a clear direction, shaking the confidence of investors and partners. In the years that followed, sales plummeted, profit margins shrank, and the COVID-19 pandemic exacerbated the difficulties. Between 2019 and 2023, Nissan attempted to regain growth but faced headwinds such as the global semiconductor crisis and intensified competition in electric markets. Debt began to climb again, and global market share fell below 5%, worrying analysts and shareholders alike. The Present and the Future In 2024, Nissan is struggling to remain relevant. Despite new launches and efforts to modernize production, the automaker faces rumors of a potential merger or even the closure of operations in some regions. The current situation results from a combination of internal and external factors but also from leadership that failed to sustain the pace of innovation set by Ghosn. Final Reflections Nissan teaches us a great deal about resilience and the risks of over-reliance on a single leadership figure. The legacy of Carlos Ghosn, with all its highs and lows, remains a watershed moment in the company’s history. The question now is whether Nissan can reinvent itself once again or if it will become yet another giant to succumb to the transformations in the automotive sector. Would Carlos make the diference now? And you? What do you think?

https://lnkd.in/gPDPWeXi Time is running out for traditional foreign automakers to adapt to China’s electric car market, signaling to industry analysts that companies must double down on local partnerships to survive.   U.S. automaker General Motors, Germany’s Volkswagen and Japan’s Nissan each saw their China revenue drop between 2019 and 2023, according to CNBC’s calculations of company data.   “Western [automakers] are waking up to the fact that they can’t just sit here and watch their market positions just erode and erode,” said David Norman, a Hong Kong-based mergers and acquisitions lawyer and partner at A&O Shearman.   General Motors Volkswagen Nissan Motor Corporation #China #Automotive     Suppliers re-prioritize shareholder returns over growth as EVs fall short of expectations - https://lnkd.in/gYrF2Dfj

🚗✨ Nissan's Critical Crossroads 🌍⚙️ The automotive industry faces challenges like never before, and Nissan is no exception. With just 12-14 months seen as pivotal for their survival, the focus is on resilience, innovation, and navigating global uncertainties. 🌟🔋 This story highlights the importance of bold strategies and future-focused action. 💪🚘 🔍 What can businesses across industries learn from this? Collaboration, agility, and adaptability are the keys to thriving in turbulent times. 🛠️🌱 🌐 Let’s share ideas and insights for resilience! 💬💼 #Innovation #Resilience #Automotive

Renault Boosts Electric Cars: Integration Sparks Efficiency and Innovation in European Market! #customerpreferences #cuttingedgetechnologies. #economiesofscale #ElectricVehicle #EuropeanEVmarket #integration #IPO #marketconditions #operationalefficiency #parentcompany #Renault #streamliningoperations

Renault Boosts Electric Cars: Integration Sparks Efficiency and Innovation in European Market! #customerpreferences #cuttingedgetechnologies. #economiesofscale #ElectricVehicle #EuropeanEVmarket #integration #IPO #marketconditions #operationalefficiency #parentcompany #Renault #streamliningoperations

Nissan’s Future Hangs in the Balance Amid Major Shakeups Nissan, one of the world’s most recognizable car brands and a key player in markets like Australia, is facing an uncertain future. This comes after its long-term partner Renault announced plans to sell off its equity stake in the Japanese automaker. Renault and Nissan’s partnership, which dates back to 1999 when Renault helped rescue Nissan from bankruptcy, is now being restructured. Renault has signaled its willingness to transfer its shares to Honda as it redefines its global strategy. For Nissan, the stakes couldn’t be higher. Insiders reveal that the company has “12 to 14 months to survive” and is actively seeking a new investor, ideally a stable, long-term shareholder such as a bank or insurance group. This transition coincides with declining sales in key markets like China and the US, along with the company’s struggle to compete in the hybrid and EV segments dominated by Toyota, Hyundai, and Kia. Despite these challenges, Nissan is considering potential alliances as a path forward. Talks with Honda about an electric vehicle (EV) and software partnership are underway. An alliance with Honda could prove pivotal, enabling both brands to compete against China’s rapidly growing EV dominance and gain traction in North America, a market seeing renewed emphasis on local manufacturing. Another potential player in this unfolding story is Mitsubishi Motors, in which Nissan holds a 34% stake (soon to be reduced to 24% as part of the Renault restructuring). Mitsubishi has expressed openness to collaboration, hinting at the possibility of a three-way Japanese alliance between Nissan, Honda, and Mitsubishi. While Renault is scaling back its role, it has not completely severed ties. Insiders indicate that Renault acknowledges the strategic value of a Japanese alliance in countering China’s growing influence in the global automotive market. The possibility of broader collaboration remains a long-term consideration. Amid these high-stakes negotiations, Nissan Oceania’s leadership is taking proactive steps to strengthen the brand locally. Newly appointed Vice President and Managing Director Andrew Humberstone recently outlined plans to revive Nissan’s presence in the Australian market. “We’ve been here for decades, and yet we haven’t told that story. This is something we’re absolutely going to change,” he told GoAuto. Nissan’s path forward will not be without obstacles. Yet with innovative technologies like its e-Power hybrid models and a refreshed lineup, including the anticipated launch of the Ariya electric SUV, Nissan is positioning itself to tackle these challenges head-on. Will a new alliance with Honda or Mitsubishi be the key to Nissan’s survival? Only time will tell. #automotive #nissan #electricvehicles #automotivetechnology #industrynews #globalbusiness #alliances

#novumcapitalpartners Very Hard Times for European carmakers... The automakers' rally is evaporating rapidly. If Renault and VW had not performed even at the time of the reopening from Covid, the other names had offered excellent returns to investors. The case of Stellantis is the most striking. After more than tripling in value, it has lost 52% since its peak, and 43% since the beginning of the year! Chart Source: Bloomberg Credits: Vittorio Treichler - Partner and Market Strategist at NOVUM CAPITAL PARTNERS SA #AutomotiveIndustry #EuropeanMarkets #InvestorReturns #StockMarket #CovidImpact #Economy #EuropeanAutomakers #IndustryUpdate #Investing