Part 3/13:
Nissan’s darkest period began in the late 1990s when it was drowning in approximately $32 billion of debt. The Asian Financial Crisis of 1997 only worsened the situation, as demand for automobiles plummeted globally. Like many automakers, Nissan was losing money, with shaky earnings and increasing debt. Even Toyota faced difficulties during this period.
The turning point came when Renault, the French automaker, acquired a controlling stake of 36.8% in Nissan, marking the start of the Renault–Nissan Alliance. Renault was seen as Nissan’s rescuing angel amid global automotive turmoil. The new leadership appointed Carlos Ghosn as Nissan’s CEO. Ghosn pledged a swift turnaround, targeting profitability within a year, and he delivered.