Insider says Nissan has “12-14 months to survive”

Times are tough at Nissan.

The automaker announced plans last month to lay off approximately 9,000 employees, representing 6.7% of its global workforce, and to cut production capacity by 20% due to declining sales, primarily in the U.S. and China.

The Financial Times, citing insider sources, has now reported that Nissan is seeking an anchor investor to help the automaker survive a make-or-break period over the next year.

“We have 12 or 14 months to survive,” a senior official close to Nissan was quoted as saying in the FT report published on Tuesday.

Some sources said Nissan was seeking a steady shareholder like a bank or insurance group, though it hasn’t ruled out a rival automaker like Honda, which Nissan is already working with on the joint development of vehicle electrification and software technologies as part of a partnership first announced earlier this year.

Nissan already counts Renault as a major shareholder. Renault previously saved Nissan from near bankruptcy in 1999 but has started downsizing its stake in the past several months, from 43% to just under 36%.

Separate sources close to Renault told the FT that Renault would be open to selling some of its shares in Nissan to Honda, as Honda’s support for Nissan would ultimately benefit Renault as well.

Nissan’s lineup has suffered over the years from limited model redesigns, although that is slowly starting to change with planned introductions like a redesigned 2025 Murano and 2025 Armada/Patrol. The automaker also doesn’t sell hybrids in the key U.S. market, which has hurt its performance as the segment is growing.

A bright spot is the partnership with Honda, which will help Nissan expand its EV lineup. Mitsubishi may also join the partnership, potentially providing Nissan with access to plug-in hybrid technology.