Nissan is just one of many carmakers going through tough times, with layoffs and production cuts inevitable. However, new data suggests the situation is worse than ever, with the company even facing total collapse.

Nissan plans to cut production capacity by 20 percent, cutting more than 9,000 jobs, and reduce its stake in Mitsubishi to around 24 percent. Also, Renault has already reduced its share in the Japanese company to below 40 percent, which further complicated the already difficult financial situation. How difficult the situation is, the statement of one of the sources for the Financial Times shows: “We have 12 or 14 months to survive.”

Nissan is in an intensive search for a new investor who could be the company’s salvation, and some are already predicting that it could be Honda, with which the Japanese manufacturer has signed a cooperation agreement on the development of electric vehicles. It is expected that Honda could buy Renault’s stake in Nissan.

Nissan management believes that operating income will be around 905 million euros by March, which is three times less than the initial estimate.

Source: Financial Times