Nissan Motor Co. and Nissan Diesel Motor Co. will inject 45.4 billion yen in new capital into Nissan Diesel Sales Co. to help the troubled Nissan Diesel group, it was announced Monday.
Nissan Motor and Nissan Diesel Motor each currently own a 50 percent stake in the sales company, which deals in trucks, buses and auto parts. Nissan Diesel Sales, based in Ageo, Saitama Prefecture, is capitalized at 40.72 billion yen.
Nissan Motor and Nissan Diesel Motor will each put up half of the proposed 45.4 billion yen capital injection.
Nissan Diesel Motor is to absorb Nissan Diesel Sales as of Jan. 1 as part of a major restructuring program the group is carrying out amid stagnant domestic sales.
The announced capital increase came after Nissan Motor and Nissan Diesel Motor injected 20 billion yen each into Nissan Diesel Sales in March.
Accordingly, Nissan Motor said that it will record the 22.7 billion yen to be invested in Nissan Diesel Sales as a special loss in the company's earnings report for the current business year to March 31, 2000.
Nissan Motor and Renault SA of France equally own a 22.5 percent stake in Nissan Diesel Motor.