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As assembly plants turned out the lights across North America in late March, automakers were quick to call upon new credit lines to ensure fiscal stability in the coming months. No one’s really sure by just how much the coronavirus pandemic will hamper sales and profits.
While Nissan, cash-strapped as it is (and facing a new crisis after tackling too many in recent times), has already furloughed its U.S. workforce, that doesn’t seem to be enough to satisfy company bean counters. The automaker is reportedly on the hunt for available cash.
Knowledgeable sources tell Reuters that Nissan is seeking $4.6 billion in credit from major lenders, fearing that the virus’ impact on sales and production will be long lasting.
As we’ve stated before, the pandemic’s arrival both here and overseas couldn’t have come at a worse time for Nissan. The company, already on the ropes from a global sales slide and an increasingly unbalanced earnings sheet, is hardly a paragon of fiscal sustainability. An updated turnaround plan pushed by the company’s new CEO, Makoto Uchida, barely had time to leave the gate before the coronavirus nipped the enhanced streamlining efforts in the bud. The plan itself isn’t expected to be revealed until next month.
According to Reuters‘ sources, the amount of available cash Nissan’s looking to add to its rainy day reserves has not been finalized. A spokesperson told the outlet that Nissan is able to sustain its current operations on its own; however, they added that “the automaker was looking at various options to prepare for a possible crisis.”
[Image: Nissan]
Japan and/or France are probably just going to to have to bail them out.
Why not the US too? And or every country Nissan builds/sells cars in. Like Spain, Thailand, Mexico, etc.
This could be the very best thing that could’ve happened to Nissan.
No. There is no need for the US taxpayer to bailout another poorly managed company. They made the bed and wet it.
Not that I would agree with it completely, but it doesn’t have to be a complete bailout either, New GM style. Just a enough aid or loans that considers Nissan’s US employment, dealers, etc.
No bailouts. It’s insane for the party that insists on blaming socialism for every ill to hand out bailouts like candy.
Let ’em die a free-market death.
I like Nissan, but if I were a lender I wouldn’t loan them anything.
Shouldn’t be a need for a govt. bail-out as long as the credit markets don’t freeze like it did during the Great Recession.
GM and Chrysler were too late to draw on their lines of credit.
Also didn’t help that in the period prior to the start of the GR, activist shareholders made GM do a couple of share buy-backs which depleted their cash reserve.
But yeah, the Republicans sure seem to like “privatized profits” but “socialized losses.”
But yeah, the Republicans sure seem to like “privatized profits” but “socialized losses.”
You misspelled “banksters”. They don’t care which side of the Uniparty is fronting for them.
The US and other parts of Europe will chip in but the majority of the burden will be on Japan and France.
No, US will not bail out Nissan. Trump will not for obvious reasons (buy American) and Democrats because Nissan is not unionized under UAW. Only Republicans from certain states may support bailout but they are in minority.
I think you’re wrong. Trump would totally help bailout Nissan to keep the factories in Tennessee and Mississippi open.
He wouldn’t support being 100% of the bailout but if the US were 15% while France and Japan pick up the other 85%, then it is happening.
Trump is sitting on over 8000 ventilators. While his home state of New York is putting 2 people on ventilators. I wouldn’t rely on any help coming from the White House.
NYC sold its ventilators and Cuomo spent $1 billion on a failed solar panel project
to this day NY subways are running – and people are packed in like sardines
NY has very bad leadership
thornmark
Even if any of that was true. It wouldn’t help Nissan. Especially when building Nissan vehicles takes vital resources away from trump’s southern wall project.
adja: If Trump will be for bailout Democrats will be 100% against it esp considering that those ungrateful workers rejected marriage proposal from UAW. Even worse – Dems will try to impeach Trump right after that virus drama ends or after elections.
Drumpf would totally be for a bailout if he thinks it would help his re-election chances.
Just like how the Republicans were for the biggest stimulus package in the history of the country (in order to help Drumpf’s re-election chances) when they fought Obama tooth and nail in trying to get the economy going during the Great Recession.
Economies which have tanked due to malfeasance of the finance/banking sector need more stimulus and take longer to recover (see the Great Depression).
Lots of long faces walking around here in Smyrna,Tn,
I don’t think they have ever seen a real lay off, even
back when they had unsold cars parked everywhere back
before Ghosn saved them, of course kinda hard to see
their faces with everyone wearing a mask!
Well, since Japan effected a coup to oust Goshen and prevent further integration with Renault, Japan should bail them out.
If a bailout occurs, if………. I also believe that the Japanese and French governments will bear the lion’s share of the bailout’s cost.
But don’t rule out US assistance, not yet.
I wouldn’t think that the Federal government would have the appetite to chip in. But the states with the highest job losses, Tennessee has already been mentioned, would likely provide some sort of relief.
I would be willing as a taxpayer to pay Nissan to not make vehicles. Terrible quality.
Nothing to do with taxpayers and everything to do with politics and UAW (or lack of it).
Let them die. No bailout money from US taxpayers. If other countries want to put their cash on the line, fine. But those countries should first tell the US they don’t need any more aid from us, if they now get it.
The taxpayers foot the bill. Nissan USA is not unionized so the UAW would not be in favor of the Government helping Nissan. I don’t believe the politicians except maybe those from Tennessee and Mississippi would put Nissan on their list of companies to bailout. Unless Nissan starts to put more quality back in their vehicles it should either pull out of the USA or offer less vehicles and import their vehicles from Japan. Nissan use to make good reliable competitive vehicles but they have lost their way.
It should just be liquidated.
Agree it should be liquidated but it is likely to be sold to the Chinese.
An interesting alternative to the Chinese would be Vinfast. They could definitely give Nissan some lessons on how to do an interior.
https://vinfastmedia.com/en/gallery/#