Nissan Diesel Bailout Unveiled
February 4, 2000
Nissan Motor has finally announced the long-anticipated bailout plan for its truck manufacturing unit Nissan Diesel.
According to Reuters news service, creditor banks will establish a four-year, 200 billion yen (about USD$1.86 billion) credit line. Nissan Diesel will issue about 5 billion yen in convertible bonds to Nissan Motor.
The package also calls for collaboration with Renault, which owns 22.5% of Nissan Diesel. Reportedly, plans are being finalized for Nissan Diesel to supply diesel engines Renault and its truck manufacturing arm RVI. Renault-built light commercial vehicles will be sold in Japan through Nissan Diesel's sales network and Nissan Diesel light trucks will be distributed overseas through the RVI/Mack Group.
A formal plan to boost profitability is expected by late April.