Japanese Automaker Nissan seeks $4.6 Billion bail out package to recover from the ongoing COVID-19 crisis. According to Reuters, the Automobile Company has requested the from the major lenders, which can be seen the effort by the company to support its finances during the lockdown.
As the COVID-19 Pandemic hits hard globally, the demands of car slashes and it affects the overall production industry. The Japanese Automaker Nissan is vulnerable to the recession as the company was struggling to hold its feet on ground after witnessing the sharp decline in profits over the decades.
The company is still in chaos due to the scandal surrounding to its ousted CEO Carlos Ghosn.
Some people of the senior management has revealed on the condition of anonymity that the company has yet not decided about the amount for the bailout package.
Meanwhile, the spokesperson Spokeswomen has confirmed that Company has got enough cash., which would be enough to run the major expenses of the company, but the company is lending credit to prepare itself for a possible fall out during or after the pandemic.
The Nissan’s New Boss Uchida has been tasked to prepare the aggressive recovery plan for the company as the company’s ousted CEO Carlos has suggested to cut 10% employees of the company globally, a step which is insufficient to ensure the survival of the struggling Japanese Car maker.
According to Refinitiv Smart Estimate, the company has posted its first quarterly loss in February in nearly a decade and it is expected that company’s profit to plunge 85% or 450 million USD in March. The company is expected to witness more financial strains in the coming months.
According to Japanese Nikkei Business Daily, the company is seeking assurances from the major commercial banks, including the Mizuho Financial and the company also seeking to get support from the Government-backed Development Bank of Japan to recover from the crisis.