Borrowing money, Nissan gets $2 billion in credit from the Japanese government

Recently, according to foreign media reports, Nissan Motor will receive US$2 billion (approximately RMB 13.1 billion) in credit from the Japan Bank for International Cooperation (JBIC), which is part of the US$4.1 billion credit agreement previously applied by Nissan. Part.

JBIC is Japan’s state-owned export credit agency, and this move is intended to help Nissan Motor boost its performance in the United States. Nissan’s performance in the North American market continued to be sluggish. According to data, Nissan’s sales in North America fell by 9.9% to 1.35 million vehicles in 2019; the decline has not stopped this year. Nissan’s second-quarter financial report shows that from July to September this year, Nissan’s sales U.S. sales were 221,000 vehicles, a year-on-year decrease of 32.4%.

The United States is Nissan’s second largest auto market after China. It is a key part of Nissan’s performance boost. Therefore, it has formulated a series of plans, including credit financing for normal business adjustments.

This is not the first time that Nissan has borrowed money. In the first half of this year, Nissan received approximately US$6.65 billion in loans from major borrowers in response to the epidemic crisis, one third of which was guaranteed by the Japanese government. Japan Bank for International Cooperation is a credit institution under the Japanese government. This year it has provided a number of loans to automakers including Nissan. For example, it provided a US$582 million loan to Nissan Mexico branch in July; it reached an agreement with Honda Brazil branch in October. An agreement worth 78 million U.S. dollars, etc.

In comparison, the Chinese market is currently Nissan’s biggest reliance. From January to October this year, Nissan sold a total of 883,000 vehicles in China, and sales are gradually picking up. In October, it increased by 5% year-on-year to 146,000. Vehicles. At the same time, Nissan is also further increasing its emphasis on the Chinese market. Its President and CEO Uchida Makoto said at the 2020 Beijing Auto Show that by 2022, Nissan will introduce the Nissan Ariya (parameter|inquiry) and Seven new models including Nissan’s e-POWER technology models.

Editor's comment:

Nissan's fiscal second fiscal quarter 2020 (July-September 2020) financial report shows that the second fiscal quarter has a net loss of 44.4 billion yuan, compared with a net loss of 285.6 billion yen in the first fiscal quarter. Said, there is a clear upward trend. Behind the recovery of Nissan's performance, China is the biggest boost, while the US market is still dragging its feet. This also shows Nissan's anxiety. With the support of the Japanese government and banks, perhaps the daily production capacity will adjust the North American business as soon as possible and achieve profitability again.