Latest news with #NissanMotor
New Straits Times
2 days ago
- Automotive
- New Straits Times
Japan's Nikkei ends lower as court battle over US tariffs weighs
TOKYO: Japan's Nikkei share price average ended lower on Friday, weighed down by uncertainty surrounding a court battle about US President Donald Trump's tariffs as well as a stronger yen which hurt exporters. The Nikkei index fell 1.22 per cent to close at 37,965.1, having ended the previous trading session at its highest point in more than two weeks. It rose 2.17 per cent over the week. The broader Topix fell 0.37 per cent to 2,801.57 and rose 2.41 per cent for the week. "Japanese shares rose yesterday on expectations that the impact of Trump's tariffs on the global economy would be eased, but that positive mood was erased overnight," said market analyst Shuutarou Yasuda at Tokai Tokyo Intelligence Laboratory. A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday, a day after a trade court ruled that the president had exceeded his authority in imposing the duties and ordered an immediate block on them. The US dollar fell following the news, pushing the yen as high as 143.45 on Friday. Strong inflation data on Friday for Japan's capital also helped the yen to strengthen, strategists said. Automakers fell, with Nissan Motor and Honda Motor slipping 3.13 per cent and 1.87 per cent, respectively. Toyota Motor erased early loss to end 1.26 per cent higher. A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency. Chip-related shares fell, with Advantest and Tokyo Electron down 3.61 per cent and 4.76 per cent respectively, to drag on the Nikkei the most. Bucking the trend, drugmakers rose, with Otsuka Holdings jumping 6.82 per cent to provide the biggest support for the Nikkei. Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 57 per cent rose, 38 per cent fell and 3 per cent were flat.
Business Times
4 days ago
- Automotive
- Business Times
Nissan plans one trillion yen funding with backing from UK government
[TOKYO] Nissan Motor, facing a huge loan repayment wall next year, is seeking to raise more than one trillion yen (S$8.9 billion) from debt and asset sales to keep operations on track, according to documents seen by Bloomberg News. The struggling Japanese automaker plans to issue as much as 630 billion yen in convertible securities and bonds, including high-yielding US dollar and euro notes, the documents show. Nissan also plans to take out a £1 billion (S$1.7 billion) syndicated loan, guaranteed by UK Export Finance. In addition, Nissan is seeking to sell part of the stakes it owns in Renault and battery maker AESC Group, as well as plants in South Africa and Mexico. Sale-and-lease-back plans for its Yokohama headquarters, plus properties it owns in the US, are also on the cards. The aggressive and wide-ranging fundraising plans underscore Nissan's rapidly deteriorating financial and operational position, despite efforts by newly appointed chief executive officer Ivan Espinosa to turn the company around. Espinosa presented the options to the board earlier this month, sources familiar with the matter said, with the goal of securing some funding within the quarter that will end Jun 30. The funding proposal does not appear to have been approved by Nissan's board yet, leaving it unclear whether it will happen, the sources said, declining to be identified discussing details that are private. The proposal is also slated to include the rollover of some debt. Representatives for Nissan did not immediately respond to a request for comment. A spokesperson at UK Export Finance said in a statement that the organisation does 'not comment on speculation around specific transactions'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The funding urgency stems from internal forecasts predicting that Nissan's car manufacturing operations will see excess cash dwindle to close to zero by the end of March 2026, the documents show. The projections are based on US tariffs remaining in place and no further cash injections. Nissan has sufficient capital of about 2.2 trillion yen in cash on hand and credit to last the next 12 to 18 months, Espinosa told Bloomberg TV earlier this month. 'We have a solid footing in terms of liquidity,' he said. Given the uncertainty over tariffs and the state of its business, Nissan did not issue a profit outlook for the current fiscal year, saying only it expects to post sales of 12.5 trillion yen. Along with its group firms, Nissan is facing around US$5.6 billion of debt due next year, the most in Bloomberg-compiled data going back to 1996. The internal documents viewed by Bloomberg also show that Nissan expects to see an operating loss of as much as 450 billion yen for the 12 months to March 2026 if higher tariffs remain in place. Without tariffs, the loss is forecast to be 300 billion yen. Either would mark the biggest operating deficit in the company's history. Espinosa announced plans earlier this month to eliminate 20,000 jobs and close seven of Nissan's 17 plants by March 2028 after the company reported a 671 billion yen net loss for the most recent fiscal year. The measures follow the collapse of talks earlier this year to join forces with Honda Motor. Those discussions ended in part due to disagreements about Nissan's willingness to make deeper cuts to production and personnel. Nissan will close two factories in Japan, as well as locations in four other countries as part of its restructuring and cost-cutting process, the Yomiuri newspaper and other news outlets have reported, citing unidentified sources. In Japan, the targeted facilities are in Oppama and Hiratsuka, near Yokohama, and represent about 30 per cent of domestic production. Various financial institutions have been lined up for the £1 billion in loans backed by UK Export Finance, which mainly supports British exporters. It will comprise one of the largest components of Nissan's planned fundraising. In the past, the agency has helped to secure financing for high-speed rail construction in Turkey and infrastructure in Angola. Nissan operates Britain's largest automaking hub in Sunderland, and has committed to boost electric vehicle production at the facility with a £2 billion investment. The British government has hailed the project as a vote of confidence in the country's automotive industry after years of uncertainty following Brexit. Earlier this month, AESC announced plans to push ahead with a second battery factory in Sunderland after getting financing support from UK Export Finance and the National Wealth Fund, as well as other investors. Formerly a Nissan affiliate, AESC is based in Japan and majority owned by Chinese interests. The recent UK-US trade deal could offer some reprieve to Nissan if it's able to export cars from Sunderland, which has an annual capacity of 500,000 units, without incurring tariffs. US President Donald Trump's 25 per cent tax on all vehicles imported into the US, which took effect in April, has cast a shadow over most global automakers. It would be costly for all of Japan's export-heavy carmakers, and especially painful for Nissan given its precarious financial state. Nissan has said it has 2.1 trillion yen in unused credit lines in addition to its own liquid reserves, but cash flow turned negative in its latest fiscal year and ratings agencies have cut the company's creditworthiness status to junk. BLOOMBERG
Straits Times
4 days ago
- Automotive
- Straits Times
Nissan plans $8.9 billion funding with backing from UK government as it faces record debt
The struggling Japanese automaker is facing around US$5.6 billion of debt due next year, the most in Bloomberg-compiled data going back to 1996. PHOTO: REUTERS TOKYO - Nissan Motor, facing a huge loan repayment wall in 2026, is seeking to raise more than 1 trillion yen (S$8.9 billion) from debt and asset sales to keep operations on track, according to documents seen by Bloomberg News. The struggling Japanese automaker plans to issue as much as 630 billion yen in convertible securities and bonds, including high-yielding US dollar and euro notes, the documents show. Nissan also plans to take out a £1 billion (S$1.7 billion) syndicated loan, guaranteed by UK Export Finance. In addition, Nissan is seeking to sell part of the stakes it owns in Renault and battery maker AESC Group, as well as plants in South Africa and Mexico. Sale-and-lease-back plans for its Yokohama headquarters, plus properties it owns in the United States, are also on the cards. The aggressive and wide-ranging fundraising plans underscore Nissan's rapidly deteriorating financial and operational position, despite efforts by newly appointed chief executive officer Ivan Espinosa to turn the company around. Mr Espinosa presented the options to the board earlier in May, people familiar with the matter said, with the goal of securing some funding within the quarter that will end June 30. The funding proposal doesn't appear to have been approved by Nissan's board yet, leaving it unclear whether it will happen, the people said. The funding urgency stems from internal forecasts predicting that Nissan's car manufacturing operations will see excess cash dwindle to close to zero by the end of March 2026, the documents show. The projections are based on US tariffs remaining in place and no further cash injections. Nissan has sufficient capital of about 2.2 trillion yen in cash on hand and credit to last the next 12 to 18 months, Mr Espinosa told Bloomberg TV earlier this month. 'We have a solid footing in terms of liquidity,' he said. Given the uncertainty over tariffs and the state of its business, Nissan didn't issue a profit outlook for the current fiscal year, saying only it expects to post sales of 12.5 trillion yen. Along with its group firms, Nissan is facing around US$5.6 billion of debt due next year, the most in Bloomberg-compiled data going back to 1996. The internal documents viewed by Bloomberg also show that Nissan expects to see an operating loss of as much as 450 billion yen for the 12 months through March 2026 if higher tariffs remain in place. Without tariffs, the loss is forecast to be 300 billion yen. Either would mark the biggest operating deficit in the company's history. Mr Espinosa announced plans earlier in May to eliminate 20,000 jobs and close seven of Nissan's 17 plants by March 2028 after the company reported a 671 billion yen net loss for most recent fiscal year. The measures follow the collapse of talks earlier in 2025 to join forces with Honda Motor. Those discussions ended in part due to disagreements about Nissan's willingness to make deeper cuts to production and personnel. Various financial institutions have been lined up for the £1 billion in loans backed by UK Export Finance, which mainly supports British exporters. Nissan operates Britain's largest automaking hub in Sunderland, and has committed to boost electric vehicle production at the facility with a £2 billion investment. The British government has hailed the project as a vote of confidence in the country's automotive industry after years of uncertainty following Brexit. Earlier in May, AESC announced plans to push ahead with a second battery factory in Sunderland after getting financing support from UK Export Finance and the National Wealth Fund, as well as other investors. Formerly a Nissan affiliate, AESC is based in Japan and majority owned by Chinese interests. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Miami Herald
4 days ago
- Automotive
- Miami Herald
Japan will spend $6.3 billion to shield its economy from Trump's tariffs
Japan has joined a growing list of nations, including Spain and Canada, that are assembling aid plans to help blunt the domestic impact of President Donald Trump's tariffs. On Tuesday, Japan approved a $6.3 billion spending package to 'fully support' businesses and households adversely affected by the tariffs, Cabinet Secretary Yoshimasa Hayashi said in a briefing. The funds will bolster the finances of small and medium-sized businesses and subsidize household energy costs, he said. The measures underscore the precarious position the Japanese government is in ahead of an upper house election likely to take place in July. On top of managing an expected economic slowdown caused by U.S. levies, officials are dealing with public anger over higher consumer prices and growing pressure to reduce Japan's ballooning government debt. Trump has paused a so-called reciprocal tariff of 24% on Japanese goods until early July. But the country's automotive sector, the backbone of the economy, is already reeling from a 25% U.S. tariff on finished automobiles and car parts. Earlier this month, Toyota Motor, Japan's largest company, projected a $1.3 billion hit to its profits for April and May alone because of the tariffs. Honda Motor and Nissan Motor have similarly forecast sharp declines in their earnings. Nissan is considering closing two plants in Japan as part of its restructuring efforts. The automaker is also planning to shift some production from Japan to the United States to skirt the tariffs. The broader concern is that the auto levies will threaten jobs and profits at major automakers and across a dense network of smaller companies that supply parts. Economists have estimated that the higher auto tariffs alone could significantly curtail Japan's economy this year. Factoring in the wider disruptions caused by global trade tensions, officials have warned that overall growth could be more than halved. The ruling party's stimulus package lands as Japan is grappling with debt, which ranks among the heaviest among advanced economies. In recent months, Japan's prime minister has characterized both the nation's burgeoning debt and U.S. tariffs as reaching crisis levels. Before Japan, a number of countries have assembled funds to help their economies cope with escalating tariffs. Spain unveiled a $15 billion tariff-aid package last month. Canada has also earmarked billions of dollars to help its workers and businesses weather turbulent trade with the United States. Japan's top tariff negotiator, Ryosei Akazawa, met in Washington last week with his counterparts in the Trump administration. The talks have moved slowly, bogging down at least in part because Trump officials have signaled that Japan's primary demand -- an exemption from the auto tariffs -- is not up for negotiation. While Japan has yet to secure concessions, Akazawa expressed optimism that an agreement could be ironed out during a Japan-U.S. meeting in mid-June, set to be held on the sidelines of a Group of 7 summit meeting in Canada. This article originally appeared in The New York Times. Copyright 2025
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Nikkei Asia
24-05-2025
- Automotive
- Nikkei Asia
India's Motherson offers to buy KKR-owned auto supplier Marelli
TOKYO -- Marelli Holdings, a struggling Japanese auto parts supplier that counts Nissan Motor as a major client, plans to accept an buyout offer from Indian peer Motherson Group, Nikkei has learned. Marelli, owned by U.S. investment firm Kohlberg Kravis Roberts, will meet with creditors Monday to discuss an out-of-court workout plan with Motherson as sponsor.
