Mazda seeks $2.8 billion in loans due to reduced sales target

Mazda Motor has recently applied for loans of 300 billion yen (approximately 2.8 billion US Dollars) from a number of Japanese banks and related institutions in response to the impact of the reduced car demand due to coronavirus pandemic. Some loans are currently in place.

It is reported that Mazda has applied for loans from MUFG Bank, Sumitomo Mitsui Banking, Mizuho Bank and Development Bank of Japan. These banks have agreed to provide funds to Mazda, and some banks have extended the loan period. At present, Mazda is negotiating with the relevant institutions on specific loan details.


As early as November 2019, Mazda had lowered its sales target and planned to achieve sales of 1.55 million vehicles worldwide in fiscal year 2020. With the spread of the epidemic leading to a decline in global demand for car purchases, in February of this year, Mazda further lowered its sales forecast to 1.5 million vehicles, a decrease of approximately 4% compared to the previous fiscal year. At the same time, in order to save R&D costs, Mazda plans to no longer launch key models until March 2022, and the current models will not make major changes or replacements.

In China, with the improvement of the domestic epidemic situation, Mazda’s sales have gradually picked up. In April this year, it sold 17,091 vehicles, an increase of 1% year-on-year. Overall, from January to April 2020, Mazda has accumulatively sold 53,442 new cars in China, down 23% year-on-year. Specific to the model, Mazda 3 Angkesela is the best-selling product, with a total of 24,170 vehicles from January to April, accounting for 45% of Mazda’s total sales in China.

Author: Nabeel K
Email: nabeel@wheelsjoint.com



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