Nissan is confronting a severe financial crisis, with potential debts reaching $5.6 billion. The company has initiated a significant cost-cutting program to mitigate losses, including a reduction of 9,000 jobs and a 20% cut in global production capacity.
Sales have dropped 3.8%, with a notable 14.3% decline in China. CEO Makoto Uchida has halved his salary, and the CFO is stepping down, but these measures may not suffice against competitors excelling in hybrid vehicle production.
Concerns are mounting over Nissan's strategic alliances with Mitsubishi and Renault, with speculation about Renault reducing its stake. The company may require government assistance within the year to survive.
Nissan's head of manufacturing announced operational changes to enhance efficiency across 25 production lines. The automaker is also exploring potential partnerships with Honda as a contingency plan.