The automotive world is in turmoil following Mercedes-Benz’s pension fund’s decision to sell its 3.8% stake in Nissan Motor, worth approximately $346 million. This move has caused a sharp decline in Nissan’s stock value, which was already struggling financially, and further fueled concerns among investors.

Mercedes to officially sell its stake in Nissan

Nissan, Japan’s third-largest automaker, has been grappling with issues such as US tariffs, ongoing restructuring, and declining sales volumes this year. Its shares have lost 24 percent of their value since the beginning of the year. Following the announcement of Mercedes-Benz’s decision to sell, the stock fell an additional 6 percent during the day.

A Mercedes-Benz spokesperson stated that the stake, transferred to the pension fund in 2016, was not strategically important and that the sale was part of a portfolio restructuring. However, the sale undermines investor confidence in Nissan’s recovery plans. Nissan plans to reduce costs by closing some of its factories in Japan and other countries to increase profitability.

Mercedes-Benz, with a 35.7% stake, was Nissan’s second-largest shareholder after Renault, which was its largest shareholder. Late last year, Nissan held talks with rival Honda about a potential partnership, but these negotiations collapsed in February.

This potential merger could have created the third-largest automotive manufacturer. Mercedes-Benz’s stake sale further deepens uncertainty about Nissan’s future.