Mazda is reportedly in talks to secure 300 billion yen ($4.3b AUD) in loans from three Japanese ‘megabanks’ in order to endure the fall-out from the coronavirus pandemic.
According to Reuters, the three banks were close to completing the deal over the weekend, with some funds already provided to the struggling Japanese carmaker.
Like many other manufacturers, Mazda was forced to cease production of some cars at its factories due to the outbreak of coronavirus.
It was already coming off a rough first quarter, having scaled back sales targets in Japan and North America (the latter makes up nearly a third of its global unit sales).
The manufacturer now looks to bolster its cash reserves with this new injection in order to hunker down and wait out what it expects to be a prolonged sales decline.
While Mazda seems big to Australians it is a relatively tiny outfit in other markets, so when it started cutting costs by limiting dealer incentives and boosting the price of core models in the US, the company quickly entered a sales downturn.
American manufacturers Ford and GM have secured US$15.4 billion ($28b) and US$16 billion ($29b), respectively.
Things are starting to look up in some markets that have eased back restrictions, but there’s no doubt the road ahead is a very long and arduous one for carmakers across the globe.
NOW WATCH Mazda3 Editor's Review on WhichCar TV
How are you finding our new site design? Tell us in the comments below or send us your thoughts at firstname.lastname@example.org.
Renault unveils plans for largest EV manufacturing facility in Europe
ElectriCity will produce 400,000 electric cars annually by 2025
Potential trailing arm failure forces Porsche to recall Cayenne
Models sold in late 2020 recalled over rear suspension fault
Genesis G80 and GV80 recalled over fuel leak
Total of 11 cars affected, all fitted with the 2.5 GDI Engine