Nissan is seeking to gain extra U.K. government support for its only vehicle production plant in Europe as part of a plan to raise more than $7 billion from debt and asset sales.
Bloomberg News reports that the struggling automaker is also considering taking out a $1.35 billion syndicated loan guaranteed by U.K. Export Finance, a U.K. government agency that provides loans and insurance to British exporters.
Nissan’s U.K. plant was established after the automaker and the U.K. government signed an agreement to build it in the nation’s industry-deprived North East region in February 1984.
The deal saw Nissan purchasing a 799-acre (323-ha) greenfield site in Sunderland, Tyne and Wear, at cheaper agricultural prices. The plant was opened by then-Prime Minister Margaret Thatcher in 1985.
More recently, the automaker had further U.K. government support when it began production in 2011 of its first battery-electric vehicle, the Nissan Leaf, and of an on-site lithium-ion battery manufacturing facility for an investment of $636 million, backed by the U.K. government.
Part of the plan sees Nissan exploring the sales of part of its stake in Alliance partner Renault and also in battery maker AESC Group, as well as its production plants in South Africa and Mexico.
A representative for Nissan says the company does not comment on speculation. U.K. Export Finance also says it does not comment on speculation around specific transactions. The news report cites sources saying Nissan's board has yet to approve the funding proposal.
Earlier this month, the company presented a sweeping cost-cutting plan under which it plans to reduce its workforce about 15% and cut car production at seven of its auto plants.
