Welcome to the Daily 5 report for Monday, June 30.
From seeking voluntary job cuts to a bruising month of exports in May, Nissan has been through the proverbial ringer lately. To help combat a $4.5 billion net annual loss Nissan took in the fiscal year that ended in March, new CEO Ivan Espinosa is asking suppliers to allow it to delay payments to free up short-term funds as the troubled Japanese automaker scrambles to boost cash.
Espinosa, who took the helm in April, unveiled plans to shed around 15 percent of Nissan's global workforce and close seven plants as he targets ¥500 billion ($3.4 billion) in cost cuts over the next two years.
The move would allow the automaker to have more cash on hand at the close of the second quarter and follows similar requests that came ahead of the end of the last fiscal year, according to several emails and a company document reviewed by Reuters.
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 incentivized 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.
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According to the emails, the automaker has specifically asked suppliers in Britain and the European Union to accept delays in payment, even if it means Nissan would have to pay more down the road.
Other stories you won't want to miss today include how Ford's top manufacturing executive is transforming the company culture, plus Rivian's cuts to 100-plus jobs in Illinois, banks holding steady on standards for approving auto loans, and Aston Martin entering, of all things, the townhouse space in Tokyo.
That's it for now. Have a great rest of your day.
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— Wes Raynal, assistant web editor
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