Cash-strapped Japanese automaker, Nissan, announced on Thursday it was selling its headquarters building in Yokohama for 97 billion yen ($630 million), as part of its efforts to revive finances.
Nissan Motor Co will lease the building, which is located southwest of Tokyo, and continue to use it as its headquarters, while recording 73.9 billion yen ($480 million) as gains from the sale to Tokyo-based real estate operator, MJI Godo Kaisha, it said in a statement.
The company said it needs the funds to modernise internal systems at its headquarters, speed up the use of AI-driven systems and digital modernisation in various operations.
“This move reflects a disciplined approach to capital efficiency unlocking value from non-core assets to support transformation during the challenging years,” the company said of the sale.
The move, said the firm, reflects the company’s strategy to innovate, stay competitive and aggressively carry out research for future growth.
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MJI Godo is a special-purpose trust owned by the Minth Group, a major auto parts maker, whose shares are listed in Hong Kong. The cost of the lease has not been disclosed.
Nissan, which makes the March subcompact and Infiniti luxury models, is to report first half financial results on November 6. However, it is no secret that the company has been struggling to return to profitability, after posting a 670.9 billion yen ($4.4 billion) loss for the fiscal year through March.
The struggling auto giant has promised a turnaround under its new chief executive, Ivan Espinosa, who took on the position earlier this year, and has two decades of experience at Nissan.
Nissan has also said it’s cutting 15 per cent of its global work force, which would translate to laying-off 20,000 employees. It’s also closing its flagship factory in Oppama, Japan.
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