Japanese automotive giant Nissan Motor Co. faces its worst financial crisis in 25 years and is preparing an ambitious restructuring plan worth over 1 trillion yen ($7 billion). The company plans to raise capital through bond issuances, asset sales, and loans to support its transformation toward electric mobility and restore profitable operations.
Financial Strategy: Bond Issuances and Syndicated Loans as Lifeline
According to Bloomberg, Nissan’s financial plan includes issuing up to 630 billion yen in convertible securities and bonds, including high-yield dollar and euro-denominated issuances. Additionally, Nissan is considering a syndicated loan worth £1 billion ($1.35 billion), backed by UK Export Finance.
The financial plan has not yet been approved by the board, but its implementation is critical as the company faces maturity of significant loans in the coming year.
Asset Sales: Renault, Manufacturing Plants, and Battery Division on Market
As part of its restructuring strategy, Nissan plans to sell portions of stakes in several key areas:
- Renault stake – partial divestment of French automotive partner shares
- AESC Battery Group – division focused on electric vehicle battery production
- Manufacturing facilities – sale of plants in South Africa and Mexico
- Existing debt refinancing – optimization of current financial obligations
These steps aim to free up capital needed for investments in new technologies and electric vehicles.
Re:Nissan Plan: Radical Cuts and Plant Closures
The “Re:Nissan” restructuring initiative represents the most extensive transformation in company history:
- 15% workforce reduction – laying off 20,000 employees worldwide
- Closure of seven production sites by 2027 – including the advanced Tochigi facility
- Manufacturing plant reduction – from current 17 to just 10 facilities
- Model lineup limitation – focus on most promising and profitable models
This cost-saving program aims to reduce expenses and improve operational efficiency in the competitive automotive market.
Electric Mobility as Key Investment Priority
Despite financial challenges, Nissan is significantly investing in developing new electric vehicles. The company plans to launch more than ten new models in North America and introduce a new generation Micra in Europe, targeting key markets including Southeast Asia.
Financial Results: From Gains to Record Loss in Quarter Century
Nissan’s current situation reflects a dramatic change from the previous year. The company faces its largest annual loss in 25 years, estimated at $2.6 billion, contrasting with last year’s $1.5 billion gain.
The decline stems from persistent issues including trade tariffs, high production costs, global chip shortages, and industry-wide transition to electric vehicles. Additional pressure comes from alliance partners Renault and Mitsubishi.
Future Strategy: Focus on Competitiveness and Sustainability
Through the comprehensive “Re:Nissan” initiative, the company seeks to create a more efficient operational framework for long-term sustainability. The plan includes improving capital efficiency by scaling down underperforming assets and reallocating resources to rapidly growing areas.
Nissan hopes these measures will help restore profitable operations and strengthen market position in the electric vehicle era. Following the financial plan announcement, Nissan shares initially rose more than 4%, later stabilizing with a 0.6% increase.
