A Ƶ Government-guaranteed loan worth £1bn is reported to be part of a huge refinancing effort by automotive giant Nissan to help it through its current struggles.
The Japanese brand is said to be looking at a syndicated loan, guaranteed by Ƶ Export Finance, among a series of measures designed to raise ¥1 trillion (£7bn). The manufacturer plans to issue up to ¥630bn (£3.2bn) in convertible securities and bonds, including US dollar and euro notes, according to Bloomberg which has seen internal documents.
It is also reported to be looking at a sale of its stake in battery maker AESC Group, which is currently building a second gigafactory on Wearside to supply the nearby Nissan plant which employs about 6,000 people. That venture has secured £1bn investment - led by the Government - including about £350m in guarantees from the National Wealth Fund, £680m sourced from various banks, and a £150m grant from the Government's Automotive Transformation Fund.
Reports also suggest Nissan is looking to sell its 15% stake in Renault SA - which could bring in €690m (£579.6m) and to sell and lease back its global headquarters in Yokohama, Japan, along with US properties. The actions come amid an urgent need for cash in the business, with Bloomberg reporting the firm's own predictions point to near zero excess cash by the end of March next year if US tariffs remain in place and without other cash coming in.
The firm is facing a reported $5.6bn (£4.1bn) of debt due next year and earlier this month reported a ¥670bn (£3.4bn) net loss for its 2024 financial year. Operating losses of up to ¥450bn (£2.3bn) are expected in the year up to March 2026.
Recently, newly installed chief executive Ivan Espinosa said that despite the challenges Nissan has significant financial resources and a strong showroom of models that could help it stage a turnaround. But at the same time deteriorating sales were reported.
Mr Espinosa has expanded drastic cost saving measures across Nissan's global business, including slashing of 20,000 jobs and the closure of seven factories by March 2028, following failed merger attempt with Honda. It hopes the action will find savings of about £2.08bn.
It is thought two factories in Japan and one in Thailand could be among the plant closures. Meanwhile the Sunderland facility has long been seen as one of the most productive in the manufacturer's stable, and has received substantial investment in recent years, and a more recent commitment to build new electric models. However, the site has seen one production shift scrapped without a loss of jobs.
A ƵEF spokesperson said: “We do not comment on speculation around specific transactions.” Nissan locally also declined to comment.
