Nissan asks suppliers to delay payments as Automaker struggles to shore up cash

According to internal emails and documents reviewed by Reuters (June 30, 2025), the Japanese automaker has reached out to multiple suppliers in the UK and EU, proposing deferred payment terms in exchange for incentives such as higher payouts later or bank financing options through lenders like HSBC. While such payment extensions are not unusual in manufacturing, they underscore Nissan’s current financial pressures as it looks to manage expenses during a challenging first quarter.

The company’s new CEO, Ivan Espinosa, who took over in April, is overseeing a major restructuring that includes cutting 15% of its global workforce and shutting down seven production facilities. These actions are expected to deliver cost savings of roughly 500 billion yen ($3.4 billion USD) over the next two years (Reuters, 2025). Nissan reported a net loss of $4.5 billion for the fiscal year ending in March — its worst annual performance in over a decade — and it has not provided guidance for the year ahead.

Emails show some payments scheduled for June could be pushed to mid-August or later, although suppliers are not obligated to accept the new terms. Internally, Nissan’s treasury department discussed a goal of freeing up around 150 million euros ($175 million USD) through these extensions, according to correspondence seen by Reuters. One document estimated that working with more than a dozen suppliers could add about 59 million euros in free cash flow.

As of March, Nissan reported cash reserves of 2.2 trillion yen ($15.1 billion USD) but faces roughly 700 billion yen in debt maturing this fiscal year (Nissan FY2024 Annual Filing). Its credit rating remains in junk territory across the major agencies, raising the stakes for any additional downgrades.

In a statement, Nissan said it has offered suppliers the choice between immediate or delayed payments with interest and that these moves are voluntary. “We aim for sufficient liquidity to weather the costs of the turnaround actions and redeem bond maturities,” the company said, noting its goal is to return to positive free cash flow by its 2026 financial year.