Honda and Mazda considering seeking loans from Japanese government

Honda and Mazda may seek loans from the Japanese government to lend to U.S. customers, according to a report by Bloomberg. The two automakers will follow their major rival Toyota Motor Corp, the biggest automaker in Japan, in seeking loans as the global economy continues to hurt auto demand.

The amount of the loan or the timing of the request to Japan Bank for International Cooperation hasn’t been decided yet; however, spokesman Toyota Tanaka for Mazda said that the automaker is seriously considering requesting a government loan.

Honda, which reported a 38 percent drop in U.S. sales for February 2009, may request up to 10 billion yen ($102 million USD). Toyota was reported to be seeking $2.1 billion.

Source: Detroit News