Mazda requested a $2.8 billion loan from three major Japanese banks due to losses

Under coronavirus conditions, some companies lack the money to cover their current losses. In the end, they have to look for additional funding.

According to Nikkei, Mazda already suffered from weak sales before the pandemic, and given the new crisis, its cash flow was negative. It plans to use the financing to increase its financial reserves.

The pandemic has put a lot of pressure on Mazda. Sales in February fell 14% compared to the same month last year, followed by a 33% decline in March. On March 24, Mazda suspended operation of several of its plants in Japan, Mexico and Thailand due to falling demand for its products.

It is interesting that the company lived in financial difficulties for decades. In the late 1990s, after fixing net losses for five consecutive years, it fell under the wing of the American car manufacturer Ford. The Union helped the Japanese company to get back on its feet and it produced a series of successful models, including the CX-5 crossover.