NSANY delays supplier payments and slashes jobs as part of a global push to conserve cash and drive a turnaround.
Nissan Motor has asked some suppliers to allow it to delay payments to free up short-term funds, according to several emails and a company document reviewed by Reuters, as the troubled Japanese automaker scrambles to boost cash.
We initiate coverage on Nissan with a Buy rating, given the extremely pessimistic current market valuation, providing a steep margin of safety. Our US$7.80/sh price target reflects our view that Nissan's problems are not new, and Nissan has been buying back their undervalued shares at similar prices since 2023. Nissan's hefty balance sheet and a 1.53 current ratio, show they can get through the current headwinds, and this contributes to our investment thesis.
The National Highway Traffic Safety Administration said on Wednesday it had closed an engineering analysis on 2,038,307 Nissan Motor vehicles over issues related to rear suspension control arm failure.
NSANY plans to trim its stakes in Renault to fund new vehicle development as part of a broader restructuring push.
Nissan Motor CEO Ivan Espinosa said that the company plans to reduce the automaker's stake in French partner Renault , the Nikkei business newspaper reported on Monday.
Global ratings agency Moody's on Friday cut Nissan Motor Co Ltd's corporate family rating to Ba2 from Ba1, as the embattled Japanese automaker seeks to push through a turnaround.
Nissan CEO Ivan Espinosa discusses the firm's turnaround plan, the electric vehicle transition and competition from Chinese automakers.
"I think in the short term, the focus that we have is to fix ourselves the company," the Nissan CEO said.
The UK government is set to guarantee a £1 billion loan to Nissan as part of a major restructuring plan aimed at stabilising the troubled Japanese carmaker, according to a report from Bloomberg. The support, through UK Export Finance, the country's official export credit agency, comes as Nissan faces mounting financial pressures, with plans to cut 20,000 jobs globally and shut down seven factories globally.
NSANY relies on e-Power technology as it focuses on cutting expenses and reshaping its vehicle lineup after reporting a loss in fiscal 2024.
Japan's Nissan has started offering buyouts to U.S. workers and has suspended merit-based wage increases worldwide, internal emails reviewed by Reuters showed, as the automaker expands cost cuts amid weak performance in key markets.