Nissan has just cashed in its stake in Daimler.
The Japanese automaker officially announced that it has sold all their shares in the German auto giant. The company sold its 1.54% stake in the German automaker for around EUR 69.85 (about PHP 4,000) each. That translates to 16.4 million shares with a total amount of EUR 1.149 billion (about PHP 66.33 billion) through an accelerated transaction.
This recent move by Nissan is pretty similar to what its alliance partner (Renault) did last March. But why did Nissan sold its shares in Daimler in the first place?
Nissan is looking to bring back profitability after a series of issues -from the Ghosn fiasco to the pandemic- threw a lot of problems the company's way. Moreover, Nissan was forced to revise its financial forecast last year when the pandemic struck. Nissan decided to cut back on worldwide capacity production by reducing the number of facilities. With the automaker facing struggles, selling off its remaining shares in Daimler can definitely help Nissan get back on track
Nissan plans to use the funds acquired through the sale of shares as resources to further enhance its business competitiveness. This includes plans to promote electrification in its tech portfolio. So far, the company has been busy launching new and updated models since 2020. These include the Ariya EV, Armada, Frontier, Kicks, Magnite, Navara, Note, Pathfinder, Qashqai, Rogue/X-Trail, Terra, and the Z-Proto.
But has the recent sale in shares affected the partnership between Nissan and Daimler? According to the Japanese automaker, all remains well as the two companies will continue to collaborate in multiple fields.
Perhaps one of the most prominent collaborations between the automakers was the Mercedes-Benz X-Class pick-up. The posh pick-up truck was based on the Nissan Navara and featured different interior and exterior styling. It was available with either a 2.3-liter twin-turbo diesel or a more powerful 3.0-liter turbo-diesel V6. Due to poor sales, however, Mercedes-Benz stopped production of the X-Class in February 2020.
Will Nissan's decision to sell off its remaining shares in Daimler actually help the company towards better profitability?