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Nissan Downsizes & Delays Supplier Payments Amid Cash Shortage
ZACKSยท 2025-07-01 15:01
Group 1 - Nissan Motor Co., Ltd. is facing a cash shortage, leading to delays in payments to suppliers and significant global cost-cutting measures, including the elimination of 20,000 jobs, which is about 15% of its global workforce [1][10] - The company is negotiating with suppliers for extended payment terms and has offered flexible payment options to selected suppliers in the U.K. and Europe to improve cash flow for the April-June quarter [3][4][10] - As of March end, Nissan had 2.2 trillion yen in cash and equivalents but faced approximately 700 billion yen in debt maturing later in the year, with a target of 250 billion yen in cost reductions under its Re:Nissan recovery plan [6][10] Group 2 - Discussions will begin with workers at the Sunderland plant in the U.K. regarding voluntary retirement, aiming to reduce the workforce by about 250 employees, as the facility is crucial for Nissan's turnaround and future electric vehicle production [2][10] - Nissan has provided suppliers with two options for payment: defer payments at a higher interest rate or receive immediate payment from HSBC, which Nissan will reimburse later with interest [5][10]