On the Dash:
- Nissan’s restructuring and plant cuts may affect product supply and dealer support.
- Projected losses of over $1 billion could pressure pricing and incentives.
- Investor exit raises concerns about Nissan’s long-term stability and consumer confidence.
Nissan’s shares dropped sharply on Tuesday after the Mercedes-Benz Pension Trust moved to sell its entire stake in the Japanese automaker. The pension fund is divesting roughly 140 million shares, representing a 3.8% holding, in a move that signals a complete exit from the investment.
The stock sale was priced at $2.30 per share, about a 6% discount from Nissan’s Monday close. Shares fell as much as 6.8% in morning trading in Tokyo before closing 6.3% lower, marking the steepest single-day decline since early April. Settlement of the share placement is scheduled for Aug. 28.
While the divestment will not affect collaborations between Mercedes-Benz and Nissan, the move underscores investor concern over Nissan’s long-term outlook. Analysts note that pension funds typically maintain medium- to long-term positions, suggesting the decision reflects a pessimistic view of the company’s recovery prospects.
Nissan is in the midst of a sweeping restructuring effort following its worst financial position in more than 20 years. Earlier this year, Chief Executive Officer Ivan Espinosa announced plans to cut approximately 20,000 jobs worldwide and reduce the company’s global manufacturing footprint to 10 plants from 17.
Despite a recent lift from President Donald Trump’s tariff reductions on vehicles and auto parts imported to the United States, Nissan continues to face steep financial challenges. The automaker has forecast an operating loss of about $1.2 billion for the April through September period and refrained from issuing guidance for the full fiscal year ending March 2026. Market analysts project the deficit could reach $1.6 billion.
Mercedes-Benz AG said the shares were transferred into its pension assets in 2016 and were not considered strategically significant. An unnamed source told Reuters that demand for the offering exceeded supply by about ten times, suggesting strong investor appetite for the discounted shares despite Nissan’s headwinds.
The exit of Mercedes-Benz’s pension fund removes a notable institutional backer at a time when Nissan is struggling to restore profitability and regain confidence among global investors.
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