Subaru to Procure 100 B. Yen Amid Pandemic
Tokyo, May 18 (Jiji Press)--Subaru Corp. <7270> said Monday it will procure 100 billion yen to increase liquidity amid a vehicle demand plunge caused by the coronavirus pandemic.
The automaker will borrow 60 billion yen from financial institutions and issue corporate bonds to raise 40 billion yen.
As of the end of March, Subaru had 859 billion yen in cash and deposits.
"We don't know what will happen from now on. A second wave of infections may occur," said Executive Vice President Toshiaki Okada. "We're getting ready for flexibly supporting our partners."
To cope with the demand fall, the automaker will continue to curb output by extending daytime-only operations until June 19 at its sole domestic assembly plant in Ota, Gunma Prefecture.
[Copyright The Jiji Press, Ltd.]