Mazda Seeks 300-B.-Yen Loans amid Coronavirus Crisis

Economy

Tokyo, May 9 (Jiji Press)--Japan's Mazda Motor Corp. <7261> has sought loans totaling about 300 billion yen from the country's three largest banks and other lenders, it was learned on Saturday.

The company hopes to keep ample funds at hand as its automobile sales are expected to remain sluggish amid the novel coronavirus crisis. Among the banks approached by the automaker for loans are Sumitomo Mitsui Banking Corp., one of the three megabanks, and the government-affiliated Development Bank of Japan, informed sources said.

Mazda's global vehicle sales by volume plunged 33 pct from a year before in March, hit by a slump in demand in overseas markets, including Europe and the United States.

Since late March, Mazda has been adjusting production in and outside Japan.

With the planned fresh funding, Mazda, which had 506.8 billion yen in cash and deposits at the end of 2019, aims to prepare for unexpected developments, according to the sources.

[Copyright The Jiji Press, Ltd.]

Jiji Press