- Toyota reportedly offered help to Nissan after its talks with Honda fell apart.
- Neither Nissan nor Toyota has confirmed any discussions about a partnership.
- Nissan is cutting 20,000 jobs and closing seven out of its 17 production facilities.
A lot can change in six months, and Nissan’s recent rollercoaster ride is proof of that. Late last year, the company was deep in talks with Honda about a potential merger, and by January, it seemed like they were ready to unite. But, just as quickly as that partnership appeared to be in the works, it came crashing down, leaving Nissan to face its challenges alone.
However, it’s now been revealed that after the merger disintegrated, another Japanese automaker offered a helping hand to Nissan.
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A report from Mainichi claims that in February, a Toyota executive made contact with Nissan, offering support. Details about what exactly this support entailed remain unclear, and neither Nissan nor Toyota has confirmed any talks about a potential partnership. However, it’s hard to ignore the fact that Toyota might see Nissan’s current predicament as a prime business opportunity.
Toyota has a long history of quietly increasing its financial influence in other car companies. In fact, Toyota first purchased a 0.22% stake in Daihatsu nearly 60 years ago, gradually growing it to 16.8%, then 33.4% in 1995. By 1998, Toyota had increased its stake to 51.2%, and by 2016, Daihatsu was fully absorbed into Toyota’s fold.
But that’s not all. Toyota has also invested heavily in other car manufacturers, holding around 20% of Subaru and roughly 5% stakes in both Suzuki and Mazda. So, it’s clear that Toyota is no stranger to making calculated investments when the time is right.
Only time will tell if Nissan accepts some kind of investment from Toyota. For what it’s worth, Nissan chief executive Ivan Espinosa says Nissan is open to new partners, although it is focused on fixing its issues from within, at least in the short term.
“This is a very open review that we’re doing, and we are evaluating potential partners that will bring additional corporate value to Nissan,” Espinosa said last week while announcing the brand’s ambitious turnaround plan.
This plan includes cutting 20,000 jobs across its global network, reducing its workforce’s average cost per hour by 20%, cutting parts complexity by 70%, and slashing the number of platforms it uses. Nissan also intends to close seven of its 17 global production facilities.
