Major automobile manufacturer is on the verge of collapse, experts are ringing alarm bells

In 12 months there may be one less car brand on the road. A major automobile manufacturer is on the verge of collapse, experts are screaming. Experts say it only has 12 months to survive.

We are talking about the large automobile manufacturer Nissan. The company employs more than 20,000 people worldwide. However, there appears to be a downturn. Last month, Nissan announced it would close 20 percent of its capacity and lay off 9,000 employees.

It’s trying to cut costs by $2.6 billion. But insiders say this won’t be enough to prevent the automaker’s financial ruin. Cost-cutting measures have impacted senior leadership, with Chief Executive Makoto Uchida getting 50 percent. Meanwhile, Chief Financial Officer Stephen Ma resigns.

According to the Financial Times, Nissan may need a government headline to stay in business. But it could end up owing $5.6 billion. An insider said: “We still have 12 or 14 months to survive. This will be hard. And in the end we need Japan and the USA to generate money.”

Hideyuki Sakamoto, head of production at Nissan, said at a press conference: “We currently have 25 vehicle production lines worldwide. Our current plan is to reduce the maximum operating capacity of these 25 lines by 20 percent.”

Car manufacturers on the way to ruin

He continued: “One concrete way to do this is to change line speeds and shift patterns to increase the efficiency of operational staff.”

Meanwhile, Uchida said: “This is a lesson we learned and we couldn’t keep up with the times. We couldn’t have predicted that hybrid electric vehicles and plug-in hybrids would be so popular.”

The company called on the UK to ease fines for carmakers that miss target sales of their electric and hybrid vehicles under its zero-emissions vehicle mandate. The fines would make an already bad situation for the automaker even worse.

Chancellor Rachel Reeves said it would support car manufacturers.

Last week she told broadcasters: “We are committed to the goal of phasing out the purchase of new petrol and diesel cars by 2030, but in doing so it is really important to ensure we get the balance right and adequately support the automotive sector,” for which Automotive industry in Great Britain.

“We have just launched a consultation to examine the plans we inherited from the previous government, which would have meant fines for companies that did not sell some of the electric vehicles, because we want to continue to invest and keep jobs.” UK. ‘