Nissan Motor has raised US$7.8bn in financing from creditors since April, Reuters reported, citing the automaker's latest annual securities report.
In a filing to Japanese financial authorities, the automaker reported it had raised JPY832.6bn including JPY712.6bn announced in late May to respond to the novel virus, the news agency said.
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Chief executive Makoto Uchida last May said improving cash flow would be Nissan's biggest challenge, though the company expected to have positive free cash flow in the second half of the current financial year, compared with a negative JPY641bn yen in the fiscal year to 31 March 2021.
In addition to the secured funding, Nissan has said it has JPY1.1 trillion in net cash in its automotive business, and credit lines of up to JPY1.3 trillion, Reuters noted.
The company had acknowledged more funding might be needed to cushion the blow of the coronavirus if it continues to weigh on sales in the coming months.
Nissan booked a 40% year on year fall in global vehicle sales during the March May 2020 period when global automakers closed most of their vehicle plants and car dealerships also were closed to stem the spread of the virus.
Nissan earlier this year unveiled a new business plan which eschews the volume expansion approach of former chairman Carlos Ghosn.
Under the plan it will reduce its global production capacity and number of model offerings by 20% by 2023. That will leave it producing 5.4m units a year under normal operation and a model range of around 55 – down from 69 currently.
Ahead of the new plan, Nissan posted a larger than expected net loss of JPY671bn for the year ended in March as the COVID-19 outbreak devastated sales in its major markets.
The loss exceeded the net loss of JPY233bn for the 12 months ending in March 2009 during that decade's credit crunch.
Nissan right to focus on core strengths and cost control
