Exclusive-Nissan seeks to delay supplier payments to free up cash, company emails show

Daniel Leussink

Mon, Jun 30, 2025, 3:32 AM 5 min read

By Daniel Leussink

TOKYO (Reuters) -Nissan Motor has asked some suppliers to allow it to delay payments to free up short-term funds, according to several emails and a company document reviewed by Reuters, as the troubled Japanese automaker scrambles to boost cash.

New CEO Ivan Espinosa, who took over in April, has unveiled plans to shed around 15% of Nissan's global workforce and close seven plants as he targets 500 billion yen ($3.4 billion) in cost cuts over the next two years.

Battered by slumping sales and weighed down by an ageing vehicle lineup, the car maker reported a $4.5 billion net annual loss in the financial year that ended in March and has declined to give a forecast this year.

Now, Nissan has asked some suppliers in Britain and the European Union to accept delays in payment, according to the correspondence reviewed by Reuters and a person with knowledge of the matter.

The move would allow it to have more cash on hand at the close of the April-June first quarter and follows similar requests before the end of the last financial year in March, the emails showed.

It is not uncommon for companies to request payment extensions from suppliers to help free up cash. In a statement to Reuters, Nissan said it had incentivised some of its suppliers to collaborate under more flexible payment terms, at no cost to them, to support its free cash flow.

"They could choose to be paid immediately or opt for a later payment with interest," Nissan said.

The correspondence, which has not been previously reported, gives a detailed look at Nissan's effort to conserve cash in the short term, even if that means paying suppliers more down the line.

The emails were exchanged among Nissan employees in Britain and the EU, including staff in its purchasing and treasury departments, according to their profiles on LinkedIn.

One employee told co-workers in emails this month that suppliers were "again" being asked for an extension of payment terms. It was in line with the aim to bolster free cash flow "requested from CEO top down", the employee told colleagues. Nissan told Reuters its CEO did not mandate functional tasks in regions.

June payments would be delayed to August 15, the employee wrote, later adding some would be pushed to September.

Suppliers would not be forced to accept delayed payment, the employee wrote. The requests went out earlier this month, according to the person with knowledge of the matter.

"It shows the difficult situation Nissan is facing in terms of financing," said Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory.