Nissan's '12-14 months to survive' amid search for investors, reports suggest

Bosses at automotive giant Nissan have warned the company has '12-14 months' to survive unless a new investor is found, new reports suggest.

Amid a sales slump, Nissan recently announced plans to shed 9,000 jobs globally with the impact on its North East plant unclear. The car brand has been facing poor sales in China and the US and is reported to be looking for a long-term investor following Renault's decision to sell some of its shareholding in the Japanese brand.

One unnamed Nissan executive told the Financial Times: "we have 12 or 14 months to survive". The source added: “This is going to be tough. And in the end, we need Japan and the US to be generating cash." The report indicates that Nissan is seeking a long-term shareholder such as a bank or insurance group to underpin its finances.

It comes amid a period of turmoil for Nissan, which has sought to restructure by reducing production by 20% and cutting around 6.5% of its workforce. The firm also plans to sell up to 10% of its stake in Mitsubishi Motors to raise up to 68.6bn yen (£342m). It hopes the measures can save up to £1.5bn (300bn yen).

Personnel at Nissan's Sunderland plant - where it employs 6,000 people and has announced around £3bn of investment into electric vehicle production - declined to comment on the reports.

Earlier this month Nissan described its financial situation as "severe" and said urgent turnaround measures were needed to "a leaner, more resilient business”. In first half 2024 results it said operating profit plummeted by £1.59bn (303.8bn yen) to £172m (32.9bn yen) - operating profit margin of 0.5% The company has revised down its forecast for the financial year and its global CEO has volunteered to halve his salary.

The firm said global sales volumes had fallen and that its profitability had been hit by higher selling expenses, particularly in the US where it has had to offer discounts in a bid to boost waning sales.

The latest warnings to emerge from Nissan come as the firm has been among UK manufacturers lobbying the Government to reconsider electric vehicle sales targets intended to ramp up the country's transition to zero emission motoring. Last night, at a dinner held by the key industry body the Society of Motor Manufacturers and Traders, the Business Secretary Jonathan Reynolds announced a "fast-track" consultation on the Zero Emission Vehicle Mandate - which requires at least 22% of vehicles sold by each brand this year to be zero-emission, rising to 80% by 2030.

The consultation is not expected to result in changes to the Zev mandate's percentages, but could include amendments to the options for how manufacturers who miss their targets can avoid being fined.

Mr Reynolds told manufacturers he was "profoundly concerned" about how policies meant to phase out new petrol and diesel vehicles by 2030 were operating, and would consult on "a better way forward" while still keeping the target.

The turmoil in the automotive market has seen both Ford and Vauxhall owner Stellantis announce job losses in recent weeks.