Nissan Motor Co. is seeking to defer payments to suppliers in the United Kingdom and European Union as it scrambles to preserve liquidity amid a deepening cash crunch.
Internal emails reviewed by Reuters reveal the automaker requested to push June payments to August or September, echoing similar tactics used at the close of its last fiscal year.
The move is part of a broader effort to bolster free cash flow, with the company targeting €150 million (A$268.71 million) in short-term liquidity gains.
Suppliers were offered two options: accept delayed payments with interest or receive immediate payment via HSBC, with Nissan reimbursing the bank later.
Cash Burn and Junk Ratings Underscore Financial Fragility
Despite holding ¥2.2 trillion (~US$15 billion) in cash, Nissan expects negative free cash flow of ¥550 billion (~US$3.8 billion) this quarter alone. With ¥700 billion in bond maturities due by March 2026, company liquidity management is under intense scrutiny.
All three major credit rating agencies have downgraded Nissan’s long-term debt to junk status, raising its cost of capital and complicating future refinancing efforts.
CEO Ivan Espinosa, who took the helm in April, is targeting ¥500 billion in cost reductions over two years, including a 15% global workforce reduction and the closure of seven manufacturing plants by FY2028.
Sunderland Spared as Nissan Restructures for Survival
As part of its Re:Nissan recovery plan, the automaker confirmed it would cut 250 jobs via voluntary redundancies at its Sunderland plant — its largest European facility — but spared it from global closure.
The site will continue to produce the Qashqai, Juke, and next-generation Leaf EVs. Nissan has also paused post-2027 product development, is considering divesting its Yokohama HQ, and has launched a 300-person “transformation office” to drive cost discipline.
With structural headwinds mounting and competition from Chinese EV makers intensifying, Nissan’s turnaround hinged on aggressive capital discipline and a successful pivot to electrification.
The share price for Nissan Motor Co Ltd (TYO: 7201) was trading at ¥343, up ¥1 (0.23%) today. It has a market cap of around ¥1.27 trillion.
