Mitsubishi Motors Seeks 300-B.-Yen Loans amid Virus Crisis

Economy

Tokyo, April 29 (Jiji Press)--Japan's Mitsubishi Motors Corp. <7211> has asked domestic and foreign banks for about 300 billion yen in loans in total amid the outbreak of the novel coronavirus, it was learned Wednesday.

The banks approached by the firm include Japan's three megabanks and the government-affiliated Development Bank of Japan, informed sources said.

Mitsubishi Motors aims to keep ample funds at hand in preparation for the possibility of global automobile demand slumping for a long period of time amid the epidemic, the sources said.

For fiscal 2019, which ended in March, the automaker expects to report a group net loss of 26 billion yen, the first red ink since fiscal 2016, when the company struggled due to its fuel efficiency manipulation scandal.

In March, Mitsubishi Motors' global vehicle sales by volume dived about 50 pct year on year, hit by a slump in demand mainly in the United States and China.

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Jiji Press