Nissan’s Cash Crunch Playbook: Delayed Supplier Payments, Bond Redemptions in Focus

In a bid to preserve liquidity amid a sweeping turnaround, Nissan Motor Co. has confirmed to Reuters that it is taking unconventional steps to manage cash flow, including offering suppliers a choice: accept delayed payments or receive higher compensation later. Internal emails reviewed by Reuters reveal that the automaker has incentivized some suppliers at no cost to them, aiming to free up working capital while navigating bond maturities and restructuring costs.

 

The company emphasized its goal of maintaining sufficient liquidity to weather the current transformation phase, which includes redeeming maturing bonds and funding operational shifts. Nissan’s approach—balancing supplier relationships with financial discipline—highlights the pressures automakers face amid rising input costs, EV investments, and global supply chain volatility.

 

While some suppliers have reportedly accepted the delayed payment terms, the move has sparked debate over corporate transparency and financial resilience in Japan’s auto sector.

 

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Source: Reuters – Nissan’s Supplier Payment Strategy