Nissan Going Cap in Hand to UK for Loan May Spur Japan to Act

Nissan Motor Co.’s efforts to obtain a loan backed by the UK government raises the question of whether Japan will be pressured to step in and also support the struggling Japanese automaker.

That would be unusual, but not unprecedented.

Japan’s Ministry of Economy, Trade and Industry has supervised and supported local companies in the past, from financial backing for low-cost carrier Peach Aviation Ltd. in 2011 to helping consolidate LCD panel businesses in Japan Display Inc. the following year to create a stronger global competitor.

If Nissan’s financial situation becomes even more serious, “the Japanese government will have no ...