Nissan Seeks Supplier Payment Delays to Boost Cash Flow Amid Financial Struggles

Nissan's Cash Flow Strategy

• 📧 Nissan has requested payment extensions from some suppliers in Britain and the EU, according to emails and documents reviewed by Reuters.
• 💰 This move aims to free up short-term funds and increase cash on hand for the April-June quarter.
• 🗓️ Similar requests were made before the end of the last financial year in March, indicating a recurring strategy.

Supplier Collaboration and CEO Directives

• 🤝 Nissan stated it incentivized suppliers to collaborate under flexible payment terms at no cost to them to support free cash flow.
• 🎯 An internal email indicated the request aligns with a top-down aim to boost free cash flow requested by the CEO.
• 🚫 Nissan clarified that the CEO did not mandate specific functional tasks in regions, and the company declined to comment on internal discussions or targets.

Broader Financial Challenges and Restructuring

• 📉 The automaker is facing falling sales and an aging vehicle lineup, contributing to a $4.5 billion net annual loss for the fiscal year ending in March.
• 💼 New CEO Ivan Espinosa plans to shed approximately 15% of Nissan's global workforce and close seven plants.
• 🎯 These measures are part of a strategy to achieve $3.4 billion in cost cuts over the next two years.
• 📊 Nissan has declined to provide a sales forecast for the current year, highlighting ongoing uncertainty.