By now, you should know that the coronavirus pandemic is wreaking havoc in different industries, most importantly the automotive industry. Ferrari already announced the delay of four new model launches, while Hertz, one of the biggest car rental companies globally, is reportedly in talks with creditors on how to avoid bankruptcy.
Apparently, Hertz isn't the only one that's on the lookout for a loan in order to cope with the adverse effects of the novel coronavirus pandemic.
Mazda is seeking to loan 300 billion yen (£2.2 billion) in total from Japan's three giant banks and other loan providers, according to report by Reuters. The information came from Reuters' sources who have direct knowledge of the matter.
Just like other automakers in the past month or two, Mazda has halted the production of its cars because of the pandemic. To begin with, the Japanese marque's car sales have been weak even before the coronavirus hit.
The coronavirus effect:
The three megabanks mentioned in the report are Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. The other loan providers are Development Bank of Japan, Sumitomo Mitsui Trust Holdings, and other unnamed institutions. Some of the loans have already been extended, according to Reuters' source.
The loan providers, as well as Mazda, have declined to comment about the issue on both Reuters and Nikkei business daily reports.
With some countries already easing out on regulations against the spread of the disease, we might see some improvement in car sales in the months to come. But then again, only time can tell. It's still important to take note that the demand for vehicles even after the pandemic could go either way.
Source: Reuters