Mazda needs $ 2.8 billion loan due to coronavirus

Mazda needs $ 2.8 billion loan due to coronavirus

May 10, 2020 0 By autotimesnews

Mazda is in a difficult situation due to the coronavirus. The automaker needs a loan totaling 300 billion yen (approximately $ 2.8 billion). Mazda has already made a request to the 3 largest Japanese banks and is likely to approve the loan, Reuters reports on Sunday, May 10.

Information that the Japanese company needs to attract borrowed funds totaling $ 2.8 billion, confirms the Nikkei agency. Officially, neither the financial institution nor Mazda have commented on a possible deal. Surely, a statement will be made on Thursday, May 14, when the automaker will present an annual financial report.

  Coronavirus forced the Japanese corporation to suspend production in Japan, Mexico and Thailand, the demand for cars decreased, and this affected the small Japanese company more than other car concerns. The fact is that Mazda is investing heavily in creating a line of 4- and 6-cylinder engines, and is also engaged in the creation of a new rear-wheel drive architecture.

 Mazda had money problems even before the “coronavirus” crisis: the Japanese corporation was going to abandon new models in the next 2 years in order to focus on new projects, and last year the automaker’s sales volume in Japan and the USA decreased by 7.5% .