AutoBeta(AutoBeta.net)05/12 Report--

Affected by the COVID-19 epidemic, the current overseas car market is still in the doldrums, and the financial pressure of many car companies has further escalated. Japanese carmaker Mazda recently sought loans totaling 300 billion yen (19.8 billion yuan) from Japanese banks and other lenders to deal with the financial crisis caused by the epidemic, according to foreign media reports.

It is understood that Mazda has applied for loans from the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Bank, Mizuho Bank and the Development Bank of Japan. The above-mentioned banks have agreed to provide funds to Mazda, and some banks have agreed to extend their loan terms. Mazda is currently negotiating with relevant institutions on the details of the loan.

Like other carmakers, Mazda has been under pressure from shutdowns and falling demand, with quarantine orders and blockades keeping its dealers closed and consumer demand lacklustre. At the same time, overseas outbreaks are still not under effective control, and Mazda's factories around the world have been shut down. In addition, in order to save research and development costs, Mazda plans to no longer launch key models before March 2022, and will not make significant changes or upgrades to existing models.

Mazda is located in the first and second plants of Upin in Hiroshima Prefecture and the first and second plants of Fangfu in Yamaguchi Prefecture in Japan, while some production lines in overseas markets have been suspended due to the epidemic in the supply chain, staff epidemic prevention, reduced demand and other factors. However, while the shutdown is a necessary measure, it has had a negative impact on Mazda's revenue. According to foreign media reports, Mazda's interest-bearing debt has exceeded 650 billion yen, which far exceeds Mazda's current cash and cash equivalents. Not only that, Mazda's market sales were in a downward phase at the beginning of the epidemic.

It is worth mentioning that the gradual recovery of the domestic market has become a warm current in the development of Mazda. According to sales figures released by Mazda in China, Mazda's sales in China rose 1 per cent to 17091 vehicles in April, with FAW Mazda selling 7071 and Changan Mazda selling 10020. From January to April, cumulative sales fell 23 per cent to 53442. FAW Mazda sold 21177 and Changan Mazda sold 32265.

However, the recovery of Mazda's sales in China in April is only the release of consumer demand suppressed from January to March. For Mazda, how to improve sales in the Chinese market remains a major problem in its development. On May 14, Mazda will release its first-quarter results, and in the face of the impact of the epidemic, the auto market will also re-evaluate Mazda's recovery.

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