Nissan aims to delay supplier payments to preserve cash flow, internal emails show
Nissan Motor has asked some suppliers to allow it to delay payments to free up short-term funds, according to several emails and a company document reviewed by Reuters, as the troubled Japanese carmaker scrambles to boost cash.
New CEO Ivan Espinosa, who took over in April, has unveiled plans to shed about 15% of Nissan's global workforce and close seven plants as he targets ¥500bn (R60,528,840,000) in cost cuts over the next two years. Battered by slumping sales and weighed down by an ageing vehicle line-up, the car maker reported a $4.5bn (R80,111,672,100) net annual loss in the financial year that ended in March and has declined to give a forecast this year.
Now, Nissan has asked some suppliers in Britain and the EU to accept delays in payment, according to the correspondence reviewed by Reuters and a person with knowledge of the matter. The move would allow it to have more cash on hand at the close of the April-June first quarter and follows similar requests before the end of the last financial year in March, the emails showed.
It is not uncommon for companies to request payment extensions from suppliers to help free up cash. In a statement to Reuters, Nissan said it had incentivised some of its suppliers to collaborate under more flexible payment terms, at no cost to them, to support its free cash flow. 'They could choose to be paid immediately or opt for a later payment with interest,' Nissan said.
The correspondence, which has not been previously reported, gives a detailed look at Nissan's effort to conserve cash in the short term, even if that means paying suppliers more down the line.
The emails were exchanged among Nissan employees in Britain and the EU, including staff in its purchasing and treasury departments, according to their profiles on LinkedIn. One employee told co-workers in emails this month that suppliers were 'again' being asked for an extension of payment terms. It was in line with the aim to bolster free cash flow 'requested from CEO top down', the employee told colleagues.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
3 hours ago
- The Citizen
HR manager jailed for stealing millions from special needs school
Ralton Christopher Fischer used the money to buy a Golf GTI and feed his chronic gambling habit. A 44-year-old former human resources manager at New Hope School has been sentenced to 12 years in jail for defrauding a school catering for learners with special educational needs to buy a Golf GTI and feed his chronic gambling habit. Ralton Christopher Fischer appeared in the Pretoria Specialised Commercial Crimes Court on Monday, where the sentence was handed down. Sentence Fischer was sentenced to 12 years' imprisonment, of which six years are suspended for five years, on condition that he is not convicted of fraud or theft during the period of suspension. He was convicted on eleven counts of fraud exceeding R6 million, committed between July 2018 and April 2022, while employed at the school. His duties included managing payments to staff members employed by the School Governing Body (SGB), and not by the Gauteng Department of Education. ALSO READ: Transnet executives Molefe, Gama and two others granted bail [VIDEO] Fraud During this period, the National Prosecuting Authority (NPA) spokesperson, Lumka Mahanjana, reported that Fischer fraudulently made eleven payments into multiple bank accounts registered in his name, including accounts at ABSA, Standard Bank, Discovery Bank, Nedbank, Bidvest, FNB, and Capitec. 'The fraud came to light when Fischer scanned and sent documents to a colleague, requesting that they be forwarded to his personal email. The colleague noticed irregularities and raised the alarm. A preliminary investigation uncovered payments to non-existent (ghost) employees'. Mahanjana stated that the matter was reported to the police, and the HR manager was arrested on April 4, 2023. 'Fischer pleaded guilty, claiming he used the stolen funds to feed his gambling addiction and purchase a VW Golf GTI valued at R150,000. 'He further asked the court to impose a sentence of correctional supervision or a wholly suspended sentence, citing his responsibilities as a father to four minor children, two of whom live with disabilities,' Mahanjana said. Custodial sentence However, state advocate Abram Machitela argued for a custodial sentence, citing the seriousness of the offence, the abuse of a position of trust, and the lack of remorse shown by the HR manager. Mahanjana said Machitela emphasised that Fischer's actions directly prejudiced the school and its vulnerable learners, many of whom use wheelchairs and rely on specialised support. 'The school also suffered tax liabilities exceeding R500,000 due to Fischer's criminal conduct. Magistrate Du Preez agreed with the prosecution, finding that Fischer's crimes were not merely driven by addiction, but also by selfishness and greed. 'The court noted Fischer's lack of genuine remorse and that his guilty plea was primarily due to the strength of the state's case. The magistrate concluded that only a direct term of imprisonment was appropriate under the circumstances,' Mahanjana said. NPA 'committed' Mahanjana said the NPA remains unwavering in its commitment to protecting vulnerable communities, particularly children with special needs. 'This case highlights the organisation's zero tolerance for white-collar crime, especially when committed by individuals who abuse positions of trust. Stealing from a school that serves learners with disabilities is both morally and legally indefensible. 'The court's firm sentence affirms that such betrayal will be met with the full force of the law,' Mahanjana said. The NPA welcomed the outcome as a 'clear statement that those who exploit public institutions will be held accountable.' ALSO READ: Zimbabwean national sentenced to 50 years in jail for kidnapping
Daily Maverick
5 hours ago
- Daily Maverick
Former Transnet executives in court over multibillion-rand locomotive deal from 2011
Transnet's grand locomotive deal was meant to modernise South Africa's rail backbone. Instead, it opened a funding pipeline that flowed through Gupta-linked Trillian Capital Partners and followed Brian Molefe to Eskom. His most recent arrest shows how State Capture's roots still shadow the present. Transnet's grand locomotive deal was meant to modernise South Africa's rail backbone. Instead, it opened a funding pipeline that flowed through Gupta-linked Trillian Capital Partners and followed Brian Molefe all the way to Eskom. His most recent arrest shows how State Capture's roots still shadow the present. Molefe, Siyabonga Gama, Anoj Singh and Thamsanqa Jiyane — names synonymous with the systematic State Capture in the Zuma years, named and shamed in the Zondo Commission report — appeared in the Palm Ridge Specialised Commercial Crimes Court on Monday. They are charged with fraud, corruption and breaching procurement laws tied to Transnet's multibillion-rand locomotive procurement. They were each granted bail of R50,000 (a fraction of the billions embezzled from the public purse), and the matter was postponed to 6 October for further investigation. It is a long game, and they are all skilled players. Ambitious plan In 2011, Transnet unveiled the Market Demand Strategy (MDS), an ambitious plan to shift freight from road to rail and modernise ports and pipelines. The centrepiece: acquiring more than 1,200 new locomotives, sourced through the Chinese manufacturers CSR and CNR, alongside deals with the firms GE and Bombardier for locally built units. Initial cost estimate: about R38-billion for 1,064 locomotives, which ballooned to about R54-billion. Zondo found that procurement deviations, cost escalations and contract irregularities had created fertile ground for looting. The Gupta playbook Transnet, of which Molefe was then the CEO, signed advisory contracts with Regiments Capital, which then linked to Trillian Capital, a firm created by Salim Essa to bridge Regiments and Gupta networks. The R93-million payment at the heart of this week's arrest: Trillian invoiced Transnet for advisory fees on the 1,064 locomotives, signed off by Singh and Gama. Within days, about R74-million was siphoned onwards. Zondo flagged this as a classic laundering move, funnelling out public money under layers of transaction fees and project support. Transnet to Eskom In 2015, Molefe was parachuted to Eskom as CEO to tackle load shedding, and the same advisory pattern reappeared. Trillian became a key Eskom consultant, landing hundreds of millions of rands in payments despite lacking proper contracts or deliverables. Molefe's brief stint at Eskom ended in controversy over the Gupta-linked Optimum Coal Mine deal and his illegal pension payout, which the courts later forced him to repay. Zondo's final reports called Molefe's Transnet-Eskom arc one of the clearest examples of the rot that moved with the man. Why this matters The Investigating Directorate Against Corruption says the arrests show how persons in positions of trust turned state contracts into private cash channels. Molefe and Singh's arrest ties the original Transnet locomotive inflation directly to the Trillian web that also leached millions off Eskom. Nearly 12 years since the MDS was signed off, the court will test whether the State can successfully prosecute those involved in the scam that Zondo laid bare. South Africans still shoulder billions in repayments for the locomotive orders: major funding came from US Exim Bank, Export Development Canada, Barclays, Investec and other financiers. Local assembly promises were partly delivered — the Koedoespoort Plant in Pretoria built GE and Bombardier units — but many sit idle, unusable due to supply deadlocks of parts. Prasa has split its procurement from Transnet's freight vision entirely, as the rail corridor remains riddled with theft, underuse and ageing stock. Now it's up to the National Prosecuting Authority to show it can break the cycle of impunity Zondo warned about. DM
IOL News
16 hours ago
- IOL News
Two lucky winners share R34 million in South African lotteries
Many participants won big. Image: File Two participants struck it lucky this weekend, winning massive jackpots in the PowerBall Plus and Lotto draws. The first winner won the R25.345.306.90 PowerBall Plus jackpot from draw number 1628 held on June 27 after playing with a R37.50 wager on a banking app. The second weekend winner won the R8.952.821.60 Lotto jackpot from draw 2554 on June 28, and played at a store in North West, Potchefstroom, with an R80 wager using the manual selection method. Charmaine Mabuza, the CEO of Ithuba, said: 'We're always thrilled to celebrate a jackpot winner, but when there are multiple winners, it's even more rewarding. Moments like these reaffirm our mission to positively impact lives through jackpots. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading "This past weekend was particularly exciting. In addition to two multi-million-rand jackpot wins on PowerBall Plus and Lotto, we saw 10 more jackpot winners in the Daily Lotto Draws. On Friday, one player won over R500 000. Saturday brought even more excitement, with seven winners each walking away with over R75 000, and on Sunday, two lucky players won more than R183 000 each. We extend our heartfelt congratulations to all our winners." She said they encouraged all in-store participants to check their tickets. "For players who purchase tickets via digital platforms, notifications of winnings are automatically sent', Mabuza added. All winners have 365 days from the draw date to claim their winnings, and all National Lottery winningsare tax-free. Participants can check their tickets at retail stores or on-line through the National Lotterywebsite or social media pages as there are more winners in other divisions. THE POST
