Nissan's profits plummeted by 90% in a single year.

Nissan's survival may depend on a merger with rival Honda.

In China, emerging markets, and the United States, the Japanese automaker faces challenges as its largest market. Its operating profits dropped 90% and net income dropped 94% in the first half of fiscal year 2024, compared with the same period a year earlier.

The U.S. is facing stiff competition from rising Chinese automakers, a lost lead in the global electrification race, and missteps in the U.S.

According to a report from the Financial Times in November, the company had "12 or 14 months to survive," as stated by an unnamed source. However, Nissan later told CNBC that these comments were based on "speculation."

Nissan's vice president of communications for the U.S. and Canada, Brian Brockman, stated that the company continues to maintain strong levels of liquidity and is making progress with investments in new products and technologies.

Despite reporting a 20% reduction in production and cutting 9,000 jobs, the company announced that CEO Makoto Uchida will reduce his monthly compensation by about 50% and other executive committee members will also take cuts, though specifics were not provided.

"Felipe Munoz, a global automotive analyst for JATO Dynamics, stated that the measures being taken are desperate due to the new reality brought about by the pandemic and the semiconductor shortage, which has put Chinese carmakers almost at the top."

The company has a competitive edge with six affordable models priced under $30,000 in the U.S., while the average transaction price is nearly $50,000.

Alan Haig, founder and president of Haig Partners, an investment bank that facilitates dealership acquisitions, believes that carving out a niche as the inexpensive but reliable vehicle for first-time buyers or new families is a winning strategy in the marketplace.

""We've previously worked with Nissan, and I think the combined strength of Infiniti and Nissan is enough to overcome this challenge, especially if they can secure a partnership," Haig stated."

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