This revelation, attributed to unnamed senior executives, has cast a shadow over the company\u2019s future, including its operations in South Africa.<\/p>\n\n\n\n
Nissan has struggled with declining profitability and a shrinking market share in key regions. The company has been selling some models at a loss, and job cuts have become increasingly frequent. <\/p>\n\n\n\n
In early November, Nissan announced a plan to eliminate 9,000 positions deemed redundant, reduce its global production capacity by 20%, and revise its profit forecasts for the financial year. <\/p>\n\n\n\n
These measures come on the heels of a dismal financial performance in the first half of 2024, where operating profit plummeted by 303.8 billion yen (R34.9 billion), leaving the company with a modest 32.9 billion yen (R3.7 billion) in earnings.<\/p>\n\n\n\n
To signal the gravity of the situation, Nissan\u2019s senior executives, including CEO Makoto Uchida, have voluntarily taken a 50% salary cut. <\/p>\n\n\n\n
Despite these efforts, the road to recovery remains uncertain. <\/p>\n\n\n\n
Complicating matters further is the declining support from Renault, Nissan\u2019s long-time alliance partner.<\/p>\n\n\n\n
Renault reduced its stake in Nissan from 43.4% to 36% in 2023, and Nissan is set to lower its shareholding in Mitsubishi, another alliance partner, from 34% to 24%.<\/p>\n\n\n\n
These moves are part of a broader emergency turnaround plan but have left Nissan scrambling to find a new long-term investor, potentially from the financial sector.<\/p>\n\n\n\n
Amidst this turmoil, Nissan is exploring new partnerships to secure its future. <\/p>\n\n\n\n
A potential collaboration<\/a> with Honda is on the horizon, with the two Japanese automakers reportedly working on a memorandum of understanding to jointly develop electric vehicles. <\/p>\n\n\n\n Such a partnership could help Nissan regain a competitive edge, particularly in critical markets like China.<\/p>\n\n\n\n Renault may also facilitate this alliance by selling some of its remaining shares in Nissan directly to Honda.<\/p>\n\n\n\n This move could benefit all parties, consolidating a Honda-Nissan relationship while allowing Renault to refocus its resources.<\/p>\n\n\n\n Despite these global challenges, it is still unclear how this crisis might impact Nissan\u2019s South African operations. <\/p>\n\n\n\n The company has a manufacturing facility in Rosslyn, Pretoria, which produces the Navara bakkie for local and export markets. <\/p>\n\n\n\n However, South African consumers have already seen some fallout, with models like the Qashqai and NP200 being discontinued. <\/p>\n\n\n\n Nissan has stated that it plans to launch new vehicles globally, including at least 17 models targeting diverse regions such as Europe, Oceania, the Middle East, and Africa. <\/p>\n\n\n\n If the company can navigate its current crisis, South Africa is expected to receive updates to existing models like the Magnite, X-Trail, Patrol, and Navara and the introduction of two new SUVs.<\/p>\n\n\n\n Globally, Nissan\u2019s production figures reflect the mounting pressure. <\/p>\n\n\n\n In October, the automaker\u2019s monthly output fell by 6.3% to 290,848 units. <\/p>\n\n\n\n Production in key markets like the United States and China saw sharper declines of 15%, underscoring the challenges the company faces in maintaining competitiveness.<\/p>\n\n\n\n For South Africans, the possibility of Nissan exiting the market raises questions about the future of its local manufacturing presence and the availability of its popular vehicles. <\/p>\n\n\n\n While Nissan has outlined ambitious plans to revitalise its portfolio, the next 12 to 14 months will be critical. <\/p>\n\n\n\n Whether these efforts will be enough to keep the company afloat remains to be seen, but for now, the uncertainty surrounding Nissan’s future serves as a sobering reminder of the challenges facing even the most established automakers.<\/p>\n\n\n\n Nissan has not issued a detailed public statement specifically addressing the Financial Times report.<\/p>\n\n\n\n However, in response to a request for comment by Carscoops.com<\/a>, a Nissan spokesperson declined to comment on the report but reiterated that the company is in “emergency mode,” focusing on restructuring efforts.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/Nissan-Qashqai-1024x683.jpg\")
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