Honda, Mazda and Nissan mull seeking government aid

04 March 2009

As the recession continues to hammer the global car market, three major Japanese auto makers – Honda, Mazda and Nissan – are mulling asking the government for loans to prop up their US customers. They would join the world's largest carmaker, Toyota, which has already requested the Japanese government to help it through the credit crunch.

"Due to current economic conditions, we are considering using public funds in addition to our usual sources of funding," a Honda spokeswoman said. The funding would come from the state-backed Japan Bank for International Cooperation, but the companies refused to specify how much they were asking for.

Toyota, through a wholly-owned financial subsidiary, is asking for about 200 billion yen ($3.17 billion), according to Japanese media. The carmaker has said it is seeking aid but has not officially confirmed the amount.

Nissan's spokesman Mitsuru Yonekawa said, "We are not in a situation where we desperately need funds, but as the opportunity has presented itself, we believe we should make the best use of whatever funding is available.''

While Mazda spokespersons acknowledged that they were considering asking for a bailout, they too refused to specify details. Mazda, whose US sales plunged 30 per cent in February to 16,401 vehiclesis, is partly owned by Ford Motor Corp.  

The three companies would follow Toyota Motor Corp, Japan's biggest carmaker, in seeking loans from the government as the global recession hammers auto demand. The Japanese carmakers depend heavily on exports, and US auto sales in February slid to their lowest rate since December 1981.