AutoBeta(AutoBeta.net)11/29 Report--

Affected by the decline in the global new car market and the COVID-19 epidemic, a number of multinational car companies have been hit to varying degrees this year. In particular, the auto industry plays a core role in the Japanese economy. In order to help automakers regain market competition, a local brand has recently obtained a "large" credit from the Japanese government.

According to foreign media reports, the Bank of Japan for International Cooperation (JBIC) issued a statement on November 25 that it had agreed to provide up to $2 billion in credit to Nissan, a move intended to help Nissan boost its performance in the United States. It is reported that the previous $4.1 billion was actually part of a previous credit agreement to help Nissan sell cars in the United States, allowing it to provide loans to customers in the United States, so that customers can be repaid in monthly installments.

According to JBIC, a number of Japanese car companies have been significantly affected by the epidemic this year. At the same time, the United States is also an important market for Japanese auto companies. As a credit institution under the Japanese government, the Japan Bank for International Cooperation has unpacked the bags of Japanese auto companies many times this year. In July, it provided a $582 million loan to Nissan in Mexico; in September, it provided an undisclosed loan to Toyota in South Africa; and in October, it reached a $78 million deal with Honda in Brazil.

However, a Nissan spokesman said: "We have obtained financing from a number of different sources, and JBIC is one of them." It can be seen that Nissan has been relatively affected this year. According to the relevant financial report, Nissan may lose 670 billion yen this fiscal year, a huge loss for two consecutive years.

In fact, as early as before the COVID-19 epidemic broke out this year, Nissan reported layoffs and spending cuts in the United States, plus the former chairman Ghosn incident. Nissan North America's sales fell 9.9% to 1.35 million vehicles in 2019, and its market share in the United States fell to 7.9% from 8.6% in 2019, according to data.

In view of the poor market performance and the acceleration of Nissan's strategic adjustment by the COVID-19 epidemic, Nissan decided to take 2020 as the key year of strategic adjustment. Nissan will gradually withdraw from other markets, including Europe, focusing on China, the United States and Japan, according to Reuters.

Although the Chinese market is Nissan's largest single market in China, it is also far behind Toyota and Honda, one of the three major Japanese brands, under the influence of this year's COVID-19 epidemic. In the environment of a strong rebound in the domestic market, the market share of Japanese brands has surpassed that of German, which is the first "turnaround" of Japanese versus German after eight years. But compared with Honda and Toyota, Nissan is significantly less than the former. Data show that Honda and Toyota both achieved year-on-year growth from January to October, while Nissan in China is still in a downward trend, down 8% year-on-year this year.

At present, Nissan has received US $2 billion in credit funds, but how it is invested or used will affect its future development. After all, whether it can really save its overall stable development depends on the performance of the key year of strategic adjustment in 2020.

According to the plan, China is the core market of Nissan, and Nissan will introduce seven new models, including Nissan Ariya and Nissan e-POWER technology models, to the Chinese market by 2022. Predictably, expanding its business in China has become an important step for Nissan to turn losses into profits and push forward its recovery plan. Nissan sold 146028 vehicles in China in October, up 5.0 per cent from a year earlier.

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