Nissan: UK taxpayers to guarantee £1bn loan amid Sunderland plant uncertainty
The UK taxpayer is to guarantee a £1bn loan to Nissan as part of a major restructuring of the struggling carmaker.
The Japanese firm announced plans earlier this month to axe 20,000 jobs globally and shut down seven factories.
Confirmation of the restructuring piled uncertainty onto the future of its Sunderland facility, which is the largest car plant in the UK.
There has been no confirmation by Nissan that the factory, which employs around 6,000 people, will not be impacted by the closures.
Nissan plans to take out a £1bn syndicated loan which will be guaranteed by UK Export Finance (UKEF), Bloomberg News reported.
UKEF is the government’s official export credit agency. It provides financial backing and insurance to help fund exporters, particularly when private sector backing is limited.
It played a central role in the debacle surrounding the now-collapsed shipyard Harland and Wolff, which had a vital £200m export guarantee blocked by the UK government last year.
The Department for Business and Trade has been approached for comment. A spokesperson at UK Export Finance told Bloomberg that it does “not comment on speculation around specific transactions.”
Nissan to raise £5.2bn
Nissan is grappling mounting losses amid competition in its traditionally lucrative Chinese market.
It appointed new chief executive Ivan Espinosa in March to spearhead a turnaround after talks collapsed surrounding a mega-merger with Honda.
Documents seen by Bloomberg show the company is facing a huge loan repayment wall next year and is seeking to raise around £5.2bn from debt and asset sales.
It is also lookoing to sell part of its stake in the French carmaker Renault and battery producer AESC Group, alongside plants in South Africa and Mexico.
Sale-and-lease-back proposals for its headquarters in Yokohoma are also on the cards, according to Bloomberg.
Nissan has been approached for comment.