Nissan Motor's stock price fell after its second-largest shareholder, Mercedes-Benz, sold $346 million worth of shares
Nissan Motor's stock price fell 6.5% due to Mercedes-Benz's plan to sell $346 million worth of shares. Mercedes-Benz will sell its 3.8% stake, and investors are skeptical about Nissan's prospects for turning a profit. Nissan is facing tariff issues and a decline in sales in major markets, reporting a loss of $535 million in the last three months. Nissan's CEO announced a restructuring plan, aiming to reduce global production capacity from 3.5 million vehicles to 2.5 million vehicles
According to Zhitong Finance APP, on Tuesday, the troubled Japanese automaker Nissan Motor's stock price fell by 6.5%. This was after its second-largest shareholder, Mercedes-Benz, announced it would sell its 3.8% stake. This decline highlights investors' skepticism about Nissan's prospects for returning to profitability. The company is facing tariff issues and declining sales in major markets such as the United States and China, with losses reaching $535 million in the three months ending in June this year.
The company's CEO Ivan Espinosa announced a comprehensive restructuring plan, which includes reducing global production capacity from 3.5 million vehicles to 2.5 million vehicles, while cutting the number of production sites from 17 to 10, in an effort to restore profitability.
In early trading on the Japanese stock market, Nissan's stock price fell to about 339 yen (approximately $2.30), compared to a closing price of 363 yen on Monday.
On Monday, a spokesperson for Mercedes stated that this move was not of strategic significance. He described the plan to sell the remaining shares of the automaker as merely a cleanup of its investment portfolio. The company added Nissan shares to its pension trust fund assets in 2016
