What Caused the Crisis at Nissan and Could a Merger With Honda Fix It? (December 11, 2024)
www.bnnbloomberg.ca

... Nissan Motor Co. is fighting for its life, again, and it may seek the help of another Japanese carmaker. Honda Motor Co. and Nissan are exploring a potential merger to pool resources in an alliance that could rival Toyota Motor Corp.

Nissan, one of the Japan's flagship brands, is on the brink after weak sales in the US and China triggered a huge profit slump that left top brass with little choice but to cut jobs, slash a fifth of the carmaker's manufacturing capacity and lower its annual profit forecast.

Nissan's last crisis was about 25 years ago and was remedied by French carmaker Renault SA stepping in with a cash injection and dispatching "Le Cost Killer" Carlos Ghosn, who orchestrated a dramatic turnaround. The good times didn't last and tensions mounted between some top Nissan executives and Ghosn.

This led to Ghosn's dramatic arrest in 2018 and detention for suspected financial crimes, and his ouster from Nissan. Before facing trial, Ghosn slipped out of Japan in late 2019 hidden in a case for audio equipment that was loaded onto a private jet. He fled to Lebanon where he found sanctuary. Ghosn said he was the victim of a conspiracy among Nissan executives and escaped what he called Japan's "rigged" justice system.

What is Nissan's current financial position? ....