Mazda seeks $2.8 billion loan from Japanese banks, says Nikkei

Mazda Motor Corp. requested a 300 billion-yen ($2.8 billion) loan from Japanese banks amid a plunge in demand for vehicles and plant shutdowns, Nikkei reported on Saturday.

The car maker asked for loans from MUFG Bank, Sumitomo Mitsui Banking and Mizuho Bank, as well as the government-owned Development Bank of Japan and Sumitomo Mitsui Trust Bank, according to the report, which didn’t specify how it obtained the information. The banks are expected to provide the financing.

The impact of the coronavirus pandemic, which has shuttered factories in the U.S., Europe and Asia and disrupted the supply of everything from transmissions to steering systems, is being seen across the global auto industry. Mazda sales fell 33% in March while output declined 20% compared with the same month last year.

The company had about 500 billion yen in cash and 63 billion yen in securities as of December. It has been able to secure a credit line of around 200 billion yen from Sumitomo Mitsui Banking and other financial institutions, according to Nikkei.