Friday, January 21, 2022
News Nissan Gets $4.1 B in Financing For US Car Loans: Report

Nissan Gets $4.1 B in Financing For US Car Loans: Report

Includes $2b from Japan's government export credit agency

  • Half of financing coming from government agency

  • Nissan still reeling from Ghosn and pandemic


The Japnese government is giving Nissan money to lend to Americans, says a new report. Giving them available in-house financing to provide loans to consumers in the world’s second-largest auto market.

Nissan is expecting a loss of about 340 billion yen, or about CAD 4.2 billion, which isn’t as bad as expected but is still causing financial troubles for the automaker. The US $2 billion (CAD 2.6b) comes from the state-owned export credit agency, says Reuters in its report. The total credit agreement for Nissan Motor Acceptance Corporation is US $4.1b (CAD 5.4b), said the Japan Bank of International Cooperation earlier this week.

According to the statement, “the money should help the Japanese company sell cars in the world’s second-biggest auto market after China by allowing it to provide customers with loans that they can repay in monthly instalments.” In short, it’s for loans and leases.

JBIC has provided loans for overseas financing to other Japanese automakers, including Honda of Brazil last month and for Toyota in South Africa in December. The report says that the government agency used the same lending standards as private banks would have.

Nissan is looking to pick up market share in the US, as well as China and Japan, still reeling from the rapid expansion the company underwent under former chair Carlos Ghosn. Under the ousted chairman, Nissan spent billions to expand its range and to move into new markets like India, Russia, and Southeast Asia, where sales did not meet initial expectations. Reports from before the pandemic suggested Nissan plants were operating well under capacity, which does not bode well for profitability.

 

 

Trending Now

Some Canadian Volkswagen ID.4 Order-Holders Might Not Take Delivery Until Late 2023

Demand is far out-stripping Volkswagen’s initial production plans. The pandemic and chip shortage are not helping. ID.4 Pro models with the Statement packages...

Honda and LG Energy Solution are working on a joint venture to build Batteries in the US

Honda is late to the game in terms of electric vehicles LG already supplies manufacturers such as Tesla, Volkswagen and GM Honda will...

Subaru Unveiled a Sporty Solterra STI Concept at the Tokyo Auto Show

This concept adds more aggressive styling to the brand’s first electric vehicle No details are known about performance changes, but it should be...

A Region in Switzerland has Pulled all Incentives for PHEVs Calling Them a “Con”

Testing in the region has shown that PHEVs deliver no real-world environmental advantages. Evaluations took place in both mountainous terrain and flatter areas. It...

Electric Volvo XC90 Replacement Called Embla: Report

All-new XC90 getting a name from Norse myth Embla trademark filed with EU The upcoming replacement for Volvo's XC90 crossover is expected to be...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.