Nissan Is So Pressured That It Might Sell One Of Its Major Assets To Prevent Collapse | Carscoops

      The Japanese company finds itself in a precarious situation and intends to sell its facility, which is reportedly valued at nearly $700 million, within the next 10 months.

      The automaker’s Yokohama headquarters could be valued at over 100 billion yen or approximately $698 million.

      Nissan has plans to close seven out of the 17 factories it operates globally.

      Japanese and US officials are convening to discuss a solution regarding the tariffs.

      Foreign car manufacturers are certainly under pressure from the tariffs enforced by the US in early April during President Donald Trump's administration. The Japanese companies are also affected, yet they remain hopeful for a resolution. Nissan is at the forefront of this challenging scenario, as it grapples with severe financial difficulties and may need to sell its Yokohama headquarters to remain solvent.

      According to a report by Nikkei Asia, Nissan has included its headquarters on a list of assets intended for sale by March 2026. The Yokohama location has served as the company's headquarters since its move from Tokyo in 2009 and is conveniently located near the busy Yokohama Station. The property is estimated to be worth over 100 billion yen, roughly translating to around $698 million. The funds from this sale might assist in the closure of seven of its 17 global factories.

      The Reality of Selling a Headquarters

      There is no information yet on Nissan's plans following the sale. A logical course of action would be to sell the headquarters and then sign a lease to continue utilizing it, similar to what McLaren did when it sold its Woking headquarters in the UK for $237 million and subsequently signed a 20-year lease to remain at that location.

      Currently, Nissan is facing a critical cash shortage, and tariffs are exacerbating the situation. According to Auto News, Japan hopes to negotiate a new agreement to reduce the tariffs, following a comparable arrangement between the US and the UK, as well as the recent suspension of reciprocal tariffs between the US and China. Ministers from both nations have met this month to seek a resolution.

      The Ongoing Tariff Debate

      Japanese Automobile Manufacturers Association chairman Masanori Katayama stated, “We have confirmed our intention to continue to ask for tariff avoidance at the earliest possible date. However, as this is a negotiation matter, many developments can occur moving forward. It is uncertain how long the tariffs will be in place and how this issue will be resolved.”

      The existing tariffs have led the Japanese government to provide consulting services throughout the supply chain and financial advice to affected businesses. Nevertheless, Katayama admitted local automobile manufacturers have yet to reach a decision on how to share the burden of these tariffs.

      He remarked, “We have not yet determined how we will approach the Trump tariffs and have not had a clear discussion on what share will be taken by parts manufacturers versus what share will be borne by automakers. We are all in the same situation.”