Nissan Might Sell Its Headquarters to Survive: Report
Nissan is considering selling its $700 million Yokohama headquarters as part of a survival plan involving plant closures, layoffs, and major cost cuts to stabilize the struggling automaker.
Summary
- Nissan’s Yokohama HQ, worth $700 million, may be sold by March 2026.
- Cost-cutting moves include seven factory closures and 20,000 layoffs.
- A sale-and-leaseback deal is under consideration to free up capital.
Why Nissan Might Sell Its Headquarters
Reports from Nikkei Asia and NHK reveal that Nissan’s Yokohama headquarters could soon be on the market as part of an aggressive cost-cutting strategy.
The building, valued at over 100 billion yen (about $700 million), has been Nissan’s central hub since 2009. Selling it could help the company meet its $3.4 billion savings target by fiscal year 2026 while potentially continuing operations there through a leaseback agreement, similar to what McLaren did with its own headquarters.
Other Major Cutbacks in Nissan’s Plan
The Re:Nissan plan includes closing seven of Nissan’s 17 global factories and reducing global production capacity by 20%, cutting down from 5 million units to 4 million by 2026. Additionally, the automaker is planning to lay off 20,000 employees, representing 15% of its global workforce. Nissan is also scaling back development on several models and simplifying its product platforms, focusing on reducing parts complexity by 70% to lower costs.
Challenges and Partnerships
Nissan’s struggles are intensified after a failed merger with Honda, leaving the company to explore tighter collaborations with Renault and Mitsubishi. Badge-engineered models like the Micra/Renault 5 and leveraging underused factories through Chinese partner Dongfeng are among its strategies to survive.
Despite heavy losses, Nissan’s leadership under new CEO Ivan Espinosa remains determined to execute aggressive financial restructuring to safeguard the company’s future.
FAQs
Q: How much is Nissan’s headquarters worth?
A: The Yokohama headquarters is valued at approximately 100 billion yen, or $700 million.
Q: Will Nissan stop using the building if sold?
A: Likely not. A sale-and-leaseback deal would allow Nissan to keep operating from the HQ under a lease agreement with the new owner.
Q: What other cost-saving steps is Nissan taking?
A: Besides selling assets, Nissan plans to close factories, lay off 20,000 workers, cut model development, and simplify its product lineup.
