Japanese carmaker Nissan facing bankruptcy?
Updated: Dec 10th, 2024
Nissan |
Nissan, a Japanese multinational automobile manufacturer, is reportedly facing a severe financial crisis that could lead to bankruptcy.
Reports suggest that the company could go bankrupt in 12 to 14 months unless precise measures are taken to save it.
There are speculations in the automobile market that Nissan may merge with Honda, which could help save Nissan from bankruptcy. The two companies have already signed a partnership to focus on electric vehicle development.
For now, however, Nissan plans to slash 9,000 jobs and sell a portion of its business to Mitsubishi Motors.
According to reports, the company is also planning to cut production by 20% at key US facilities in Canton, Mississippi, and Smyrna, Tennessee, which employ over 13,000 workers.
Additionally, the CEO of the company has taken the situation seriously and has made a sacrifice by cutting his salary by 50% to assess the urgency of the situation.
In India, the Japanese carmaker currently have two products. Magnite and X-Trail. Reacting to the speculations, Nissan Motors India responded, “Nissan remains committed to its India operations, dealers, partners, and customers. We remain on track for our plan announced earlier this year at the launches of the Nissan X-TRAIL and New Nissan Magnite.”
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