Struggling Japanese carmaker Nissan Motor Co. saw its shares sink by more than 6% in Tokyo on Tuesday after the company’s second-biggest shareholder, Mercedes-Benz, announced that its pension fund was selling its entire 3.8% stake.
Mercedes’ withdrawal comes as Nissan is implementing a restructuring plan, designed to reduce costs and improve profitability. The Japanese car producer reported a net loss of ¥670.9bn (€3.91bn) for the year that ended in March, and it was followed by a quarterly net loss of ¥115.8bn (€674mn) for the April-June quarter.
Nissan suspended its financial guidance for the year and announced a restructuring plan, which includes cutting 20,000 jobs and closing factories.
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Shareholders haven’t shown much confidence so far in the plans. Nissan stock has lost more than 28% of its value in the year to date, sending the company’s market capitalisation below €7.4bn.
The stocks briefly rose after US President Donald Trump said in July that he would lower tariffs on Japanese car imports to 15%, but the momentum was short-lived.
A spokesperson from Mercedes-Benz said in an email that Nissan shares, that have been held in pension assets since 2016, were “not of strategic importance”.
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Nissan’s long-term allies include the French carmaker Renault, which bailed out the Japanese company in 1999 and gained 37% ownership. This was later increased to around 43%, although Nissan has gradually been reducing its holding.
