The depth of Nissan’s financial woes is becoming even more evident—with reports that the company has been leaning on its suppliers to free up some cash.
The details: The news, first reported by Reuters, reveals that the Japanese automaker has asked some of its suppliers for leeway on payments it owes the companies.
Nissan has incentivized some of its suppliers in Europe and the U.K. to agree to more flexible payment terms, without having to incur any extra costs.
Emails reviewed by Reuters indicate that the automaker gave two suppliers two options: delay payments at a higher interest rate, or HSBC (a Nissan banking partner) would make the payment, and Nissan would repay the bank with interest.
The emails also indicate that the payment delay requests would free up cash for the first quarter (April to June), similar to Nissan’s request before the end of the financial year.
Why it matters: Nissan's need to negotiate payment delays suggests deeper cash flow problems that could force more drastic measures like additional plant closures or steeper workforce cuts beyond the 15% already planned.
Between the lines: It’s uncertain exactly how much cash Nissan frees up with flexible payment terms with some of its suppliers, but it’s clear that any amount could help address the company’s cash concerns.
Nissan had 2.2 trillion yen ($15.2 billion) in cash and equivalents at the end of March, but owes about 700 billion yen ($4.9 billion) in debt that’s due later this year.
The automaker aims to cut costs by 250 billion yen ($1.7 billion) and return to profitability by fiscal year 2026.
Bottom line: While the company still has a sizable cash reserve, its significant debt and cost-cutting goals highlight deeper concerns about the strength and viability of its overall turnaround plan.
A quick word from our partner
Are you struggling sifting through inventory that’s just not right for your lot?
OPENLANE brings dealers like you exclusive inventory, simple transactions and better outcomes — all with lower fees.
OPENLANE can fill out your lot with thousands of quality, late-model vehicles your customers are looking for.
OPENLANE features:
Exclusive access to over 70% of all off-lease vehicles in the US
Luxury or high-mileage, source trades from dealers nationwide
AI-enhanced condition reports with photos, OBD scans, engine recordings, and more
The industry’s leading buyer protection with our Buyback Guarantee
New to OPENLANE? Sign up now and receive a $2,500 buy and sell fee credit.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
