Nissan seeks US$4.6 billion credit line as coronavirus hammers car demand -sources

Nissan Motor Co Ltd has requested a US$4.6 billion commitment line from major lenders to cushion the impact of the coronavirus pandemic while it seeks to engineer a desperately needed turnaround, people with knowledge of the matter said.

As the virus decimates car demand and disrupts production across the industry, Nissan is particularly vulnerable, still reeling from sharp drops in profits after decades of aggressive expansion as well as management chaos due to the scandal surrounding ousted leader Carlos Ghosn.Nissan is requesting the 500 billion yen in funding given the possibility the impact of the coronavirus on production and demand could continue for an extended period, one of the people said.

A Nissan spokeswoman said the company had enough cash for its current business operations but the automaker was looking at various options to prepare for a possible crisis. She declined to comment further. As of December, its automotive operations had negative free cash flow of 670.9 billion yen, an increase of nearly 7-fold from a year ago. Net cash for its automotive business stood at 847.5 billion yen, with Nissan having burned through nearly 40per cent of net cash over the year.

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