Business / Corporate

Nissan seeking ¥500 billion in loans to weather coronavirus crisis

JIJI

Nissan Motor Co. has asked three mega-banks and the state-backed Development Bank of Japan for some ¥500 billion in financial assistance, informed sources said.

The automaker is trying to secure enough funds to weather the prolonged dive in business being caused by the coronavirus pandemic, the sources said Thursday.

Nissan, Mizuho Bank and others are in talks to finalize the details of the assistance package, which includes a credit line.

“We have enough funds for operations for the time being, but we are considering various measures to prepare for a possible future crisis,” a Nissan official said.

Even before the outbreak began to unfold, Nissan had been struggling to deal with a slump in global sales.

In the April-December period, group net profit tumbled 87.6 percent from 2018 to ¥39.2 billion. The automaker held ¥1.2 trillion in cash and equivalents at the end of 2019.

Amid the pandemic, Nissan has shut down factories around the world, mainly in Europe and the United States. It is also suspending operations intermittently at domestic plants in light of falling demand for new automobiles.

Nissan is expected to announce business reconstruction measures as early as next month.

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