Honda and Mazda now
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From: City of Champions, MA, USA
Honda and Mazda now
I didn't see it posted but it seems not only Toyota and Nissan are seeking bailout loans but so are Honda and Mazda:
Honda, Mazda May Apply for Japanese Government Loans
By Makiko Kitamura and Tetsuya Komatsu
March 4 (Bloomberg) -- Honda Motor Co., suffering from a 38 percent plunge in U.S. auto sales in February, may ask to borrow money from Japan’s government to lend to U.S. car buyers.
The amount of the loans and timing of the request to the state-owned Japan Bank for International Cooperation haven’t yet been determined, spokeswoman Akemi Ando said by phone today. Mazda Motor Corp. is also considering a request for government loans, spokesman Toyota Tanaka said today.
Honda and Mazda would follow Toyota Motor Corp., Japan’s biggest carmaker, in seeking loans from the government as the global recession hammers auto demand. U.S. auto sales in February slid to the lowest rate since December 1981, led by a 53 percent plunge for General Motors Corp.
“Things look pretty grim at present,” said Edwin Merner, president of Atlantis Investment Research Corp. in Tokyo, which manages $3.1 billion. “By the end of the year, the year-on-year figures should start improving unless the world economy gets much worse.”
Among Honda’s models, only its Fit small car and Acura TSX sport sedan, posted U.S. sales gains last month. The company may request at least 10 billion yen ($102 million) from the government, the Nikkei newspaper said today, without citing sources.
Mazda
Mazda, the Japanese carmaker partially owned by Ford Motor Co., increasingly needs the funds, mainly in the U.S. and Europe, Tanaka said in a phone interview. No details have been decided regarding a request for government funding, he said.
The carmaker’s U.S. sales slid 30 percent in February to 16,401 vehicles.
Japan will use some of its foreign-exchange reserves to lend to the state-owned bank that gives financing to Japanese companies operating abroad, Japanese Finance Minister Kaoru Yosano said yesterday. The ministry may lend about $5 billion to the bank this month, he said.
Honda has 986 billion yen in bonds coming due this year, according to data compiled by Bloomberg. Toyota’s financial unit may ask for 200 billion yen in loans, public broadcaster NHK reported yesterday, without citing anyone.
Honda fell 3.5 percent to close at 2,205 yen on the Tokyo Stock Exchange. Mazda rose 5.1 percent to 124 yen.
By Makiko Kitamura and Tetsuya Komatsu
March 4 (Bloomberg) -- Honda Motor Co., suffering from a 38 percent plunge in U.S. auto sales in February, may ask to borrow money from Japan’s government to lend to U.S. car buyers.
The amount of the loans and timing of the request to the state-owned Japan Bank for International Cooperation haven’t yet been determined, spokeswoman Akemi Ando said by phone today. Mazda Motor Corp. is also considering a request for government loans, spokesman Toyota Tanaka said today.
Honda and Mazda would follow Toyota Motor Corp., Japan’s biggest carmaker, in seeking loans from the government as the global recession hammers auto demand. U.S. auto sales in February slid to the lowest rate since December 1981, led by a 53 percent plunge for General Motors Corp.
“Things look pretty grim at present,” said Edwin Merner, president of Atlantis Investment Research Corp. in Tokyo, which manages $3.1 billion. “By the end of the year, the year-on-year figures should start improving unless the world economy gets much worse.”
Among Honda’s models, only its Fit small car and Acura TSX sport sedan, posted U.S. sales gains last month. The company may request at least 10 billion yen ($102 million) from the government, the Nikkei newspaper said today, without citing sources.
Mazda
Mazda, the Japanese carmaker partially owned by Ford Motor Co., increasingly needs the funds, mainly in the U.S. and Europe, Tanaka said in a phone interview. No details have been decided regarding a request for government funding, he said.
The carmaker’s U.S. sales slid 30 percent in February to 16,401 vehicles.
Japan will use some of its foreign-exchange reserves to lend to the state-owned bank that gives financing to Japanese companies operating abroad, Japanese Finance Minister Kaoru Yosano said yesterday. The ministry may lend about $5 billion to the bank this month, he said.
Honda has 986 billion yen in bonds coming due this year, according to data compiled by Bloomberg. Toyota’s financial unit may ask for 200 billion yen in loans, public broadcaster NHK reported yesterday, without citing anyone.
Honda fell 3.5 percent to close at 2,205 yen on the Tokyo Stock Exchange. Mazda rose 5.1 percent to 124 yen.
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Joined: Sep 1998
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From: Memphis
"may ask to borrow money from Japan’s government to lend to U.S. car buyers."
So what... the government's money goes toward rebates on these cars or something? That's sort of a strange way of doing things.
So what... the government's money goes toward rebates on these cars or something? That's sort of a strange way of doing things.
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From: Lake Hopatcong N.J
It would be like GM of Japan seeking money because sales are down
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From: SoCal
Wow a $102 Million loan wouldn't even make the news here!
From what it seems Honda is asking for money to lend to American car buyers because our credit markets are frozen up here and not a bailout of their own finances. I'd take that to mean they will be giving the money via financing to customers here that can't get credit under the current circumstances. So in effect the loan to American customers for Honda vehicles would then be from the Japan Bank of International Cooperation via Honda.
From what it seems Honda is asking for money to lend to American car buyers because our credit markets are frozen up here and not a bailout of their own finances. I'd take that to mean they will be giving the money via financing to customers here that can't get credit under the current circumstances. So in effect the loan to American customers for Honda vehicles would then be from the Japan Bank of International Cooperation via Honda.
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Joined: Sep 1998
Posts: 4,320
From: Memphis
I'm not an expert- Only want to know more, but since these companies are largely japan owned and managed, Can they really receive an american bailout? What effect does the fact that they produce some models here in the US have on their chances of receiving money?
It would be like GM of Japan seeking money because sales are down
It would be like GM of Japan seeking money because sales are down
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Joined: Dec 2005
Posts: 1,502
No, it's so they can give out car loans with a lower interest rate. Similar to how GMAC got $5B from TARP, and then turned around and started a 0% program.
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