Is Nissan Going Out Of Business? Here's What We Know

Japanese carmaker Nissan could cease to exist in as little as a year if things don't change drastically, insiders claim. In a report which first surfaced in the Financial Times, an unnamed senior official suggested that the manufacturer had just "12 or 14 months to survive." Nissan has had a tough time recently. Declining sales in both the U.S. and Japan, increased competition in China, and an 85% drop in third-quarter profits have already led to the loss of 7,000 jobs. Production has also been reduced, as the automaker attempts to save $3 billion thanks to a large-scale restructure.

Despite the attempts to steady the ship, things have gotten worse for the Japanese company. Renault, which has owned a significant number of shares in Nissan for a number of years, allegedly wants out, which means a new investor will have to step in to take its place. Political uncertainty centered on the incoming U.S. administration is also casting a good amount of doubt over Nissan's prospects in one of its most vital markets. Renault previously sold Nissan shares in December 2023 and March 2024, and announced plans to sell more shares in September.

Even if Nissan makes it, further restructuring may be inevitable — and this is almost guaranteed to have worldwide repercussions. As with many global auto companies, Nissan has numerous manufacturing facilities around the world – which is why so many models are made in the U.S. – with entire communities sometimes relying on the jobs those facilities provide. But some hope may be on the horizon.

The rivalry between Japanese automakers, which have made some of the most legendary cars in the industry, is pretty fierce and goes back years, yet there is some degree of collaboration. Toyota, for example, supplies things like powertrains to other manufacturers including its domestic competition. Nissan is also collaborating with long-term competitor Honda on software and EV development. However, collaborating on research and having one company own a chunk of another are two different things entirely.

Still, there is a strong indication that Honda may step up and buy Renault's chunk of Nissan, according to the insiders, potentially saving the historic brand from bankruptcy and giving it enough time to right itself. This is reportedly seen by many of those involved as a last resort, and reports indicate that Nissan is still looking into other options — including investment from banks or insurance groups. Renault, the company behind a number of powerful and iconic vehicles, allegedly considers closer collaboration between Honda and Nissan a positive thing — which may mean the decision is out of Nissan's hands entirely.