Nissan plans to sell its headquarters, is the one-time legend facing the risk of extinction?

(Dan Tri) - Nissan is considering selling its headquarters in Yokohama (Japan) to have more cash flow to maintain operations in the short term. Is the one-time Japanese legend facing the risk of extinction?

According to Nikkei Asia, the Yokohama headquarters building could bring in about 100 billion yen for Nissan. Experts say this is not just a financial deal but also reflects the company's efforts to free up short-term capital. Many companies around the world have also moved from the role of owner to tenant to increase flexibility in operations.

But behind the decision is a bleak picture. Nissan is going through its most difficult period in decades. Global sales fell nearly 10% in the first quarter of fiscal 2025, reaching just 707,000 vehicles with revenue of about 2,706 billion yen.

A series of restructuring measures have been outlined in the plan, dubbed "Re:Nissan", including closing seven factories globally, including the iconic Oppama plant in Kanagawa, moving production to Kyushu, and cutting about 22,000 jobs.

Nissan is also narrowing its product platforms, simplifying components to save costs and trying to cut the financial burden that is besieging it.

The strategy also aims to cut total global capacity from 3.5 million to 2.5 million vehicles a year. The goal is to streamline operations and improve efficiency at the remaining factories.

Nissan's Civac plant in Mexico (Photo: Nissan).

In that context, selling the headquarters and then leasing it back is considered a "medicine" to help Nissan have more cash flow to maintain operations in the short term. In Japan, many corporations have also chosen to convert this asset to compensate for the shortage of working capital, instead of borrowing in the context of fluctuating interest rates.

Hitachi, Toshiba and even some major banks have made similar deals to restructure their balance sheets.

For Nissan, the move is a clear admission that it is being forced to sacrifice fixed assets in exchange for liquidity. Experts say the future of this Japanese "legend" now depends on the speed and effectiveness of the restructuring and the ability to restore confidence from shareholders and consumers.

Source: https://dantri.com.vn/kinh-doanh/nissan-dinh-ban-tru-so-huyen-thoai-mot-thoi-dung-truoc-nguy-co-lui-tan-20250905112250700.htm