The UK government is set to guarantee a £1 billion loan to Nissan as part of a major restructuring plan aimed at stabilising the troubled Japanese carmaker, according to a report from Bloomberg.
The support, through UK Export Finance, the country’s official export credit agency, comes as Nissan faces mounting financial pressures, with plans to cut 20,000 jobs globally and shut down seven factories globally.
There has been no confirmation whether the company’s plant in Washington, Tyne and Wear, the UK’s largest car factory, will be affected. It employs around 6,000 people.
Nissan is reportedly seeking to raise about £5.2 billion through loans and asset sales.
These include selling parts of its stakes in Renault and battery maker AESC Group, as well as plants in Mexico and South Africa.