Nissan Is About To Break Open The Piggy Bank

It’s no secret Nissan is strapped for cash, but a new report sheds light on how the automaker is about to break open the piggy bank. That move involves the Japanese automaker cashing out its investment in business partner and French automaker Renault.

Toyota and Subaru are both being sued for failing EV batteries.

The concern is Nissan might be getting a temporary gain at a long-term loss. Currently, it has a 15 percent stake in Renault but plans on reducing that to 10 percent. According to CBT News, that might generate about 100 billion yen or $640 million USD.

With that cash, Nissan plans to use that injection of cash for new vehicle development. After all, if Nissan doesn’t keep innovating and coming out with new models, it’s dead in the water. We hope it uses the money wisely and forgoes putting CVTs in new vehicles.

According to Nissan management, the decision to cash out part of its stake in Renault hasn’t been finalized. It’s possible the automaker is working on some other sources of revenue.

While a deal with Honda doesn’t look likely after a breakdown in negotiations, there’s still the possibility Toyota might come to Nissan’s rescue. Many are skeptical about what an alliance between two automakers who in the past were bitter enemies would look like.

It seems like at this point Nissan is either on its deathbed and this is a last desperate gasp to stay alive or this will be the miracle necessary to bring the company into a glorious new age.

While the future is uncertain, this might be welcome news for Nissan fans. Many of them blame Renault for the Japanese brand’s many problems in the past two-plus decades. They’ve been clamoring for the automaker to ditch the French for some time, believing if that were to happen Nissan would once again soar.

We’ll see what happens next in this unfolding saga.

Image via Nissan