Honda, Mazda Request State Aid from Japan
Honda Motor Co. spokeswoman Akemi Ando confirmed the reports but explained that the amount of money hasn't been determined yet, the aforementioned source adds. Mazda Motor Corp. spokesman Toyota Tanaka also confirmed the company may be looking for state support but, again, no accurate details were provided. However, the Japanese newspaper Nikkei reported that Honda may be seeking at least 10 billion yen ($102 million) from the government.
The money are to be sourced from the state-owned Japan Bank for International Cooperations, but it's currently unclear whether the Japanese government plans to request viability plans in return for financial aid.
As part of broader campaign to cut costs around the globe and cope with the economic recession, Toyota applied cost-cutting measures in several major markets, including the UK and the US. While workers employed by the British Toyota plan got their salaries suspended in February, North America received even a more-massive schedule, with reduced production and bonuses cuts among the main programs.
"We’ve taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,” said in February Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). "This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term."