Nissan Demands Financing from the European Investment Bank

Just like many other automakers who saw their sales going down and the cost-cutting measures they applied partially inefficient, Nissan today called for support from the European Investment Bank, pointing that European loans are absolutely necessary to continue operations across the continent. In essence, Nissan says it needs financing from the EIB because the other banks are not willing to approve new loans during economic recession times.

The Japanese automaker intends to continue its efforts into the hybrid and electric vehicle sector, with the funds requested to the EIB supposed to be used particularly in this area. Eric Nicolas, Nissan's senior vice president finance and administration, told Autonews that the auto manufacturer intends to boost productivity in Barcelona, Spain and to develop electric cars beginning in 2012.

"I need money to survive and we are not going to get it from the banks at the moment," Nicolas said, explaining that the money are absolutely necessary to fund some projects started with its French ally Renault.

On the other hand, Renault has also applied for EIB financing requesting 400 million euros for its electric vehicle project. And according to Autonews who quoted an EIB source, the Luxembourg-based bank may approve the loan in the upcoming months.

In case it doesn’t receive the requested money, Nissan may be forced to reduce operations and lower production in Europe, Nicolas warned. The company may suspend some R&D centers which can’t simply exist without financing, he added.

Nissan’s official did not mention however how does the company plan to produce electric cars in Europe and whether the manufacturer intends to open its own battery producing plant. "That's really what's under discussion," Nicolas said, underlining the need for financing from the European Investment Bank.