Nissan is taking a big step into the future with significant investments in electrification and carbon neutral operations. However, to make it happen, the Japanese automaker took out loans of the same size, up to 200 billion yen. In today’s financial markets, that’s the equivalent of $1.44 billion.
Specifically, Nissan said the loan was for “zero emissions mobility investments.” The company signed the loan on November 30, arranged by Mizuho Bank with MUFG Bank and other financial institutions involved. The contract terms are five and seven years, and the money will be used to fund various green projects.
21 Photo
Nissan did not detail these projects, other than to say they are determined by Nissan’s Sustainable Finance Framework. This is an initiative launched by Nissan in July to better direct funding to projects supporting renewable energy and clean manufacturing systems, battery development, autonomous driving systems, EV charging infrastructure, next-generation electric vehicles, and related technologies.
The $1.4 billion loan is no dime, but Nissan is no stranger to electrification. The first-generation Leaf BEV hit the market in 2010, beating out the Tesla Model S by two years. It was one of the earliest modern-era electric vehicles available, and until 2019 it was the world’s best-selling EV. Despite that start, Nissan has slipped somewhat in the electric realm with only a handful of hybrids accompanying the Leaf over the years. As for the Leaf, it is now largely outclassed by most of its electric competitors providing better range and performance.
The Nissan Ariya is the company’s second all-electric offering for the mass market, though it’s only now reaching dealers after much delay. With a range of over 300 miles, it aims to be a competitive crossover in the electric segment that is getting crowded by the minute. Starting at $44,485, it fits the Hyundai Ioniq 5, Ford Mustang Mach-E, Kia EV6, and will fit the Chevrolet Blazer EV when it goes on sale in 2023.
Look Rambling About Cars Podcast for more automotive news and witty banter, available below.
