TOKYO/HIROSHIMA — Mazda Motor has requested 300 billion yen ($2.eight billion) in financing from Japan’s three megabanks and different establishments because it braces for additional fallout from the coronavirus pandemic, and a part of the loan has already been supplied, Nikkei realized on Saturday.The outbreak has precipitated demand to plunge, triggering shutdowns of the carmaker’s crops in Japan and North America.The carmaker was already battling weak gross sales earlier than the pandemic, and its cash movement has turned unfavorable. It plans to make use of the financing to construct up its cash reserves.It has requested loans from the megabanks — MUFG Bank, Sumitomo Mitsui Banking and Mizuho Bank — in addition to from the government-owned Improvement Bank of Japan and Sumitomo Mitsui Belief Bank.The banks are anticipated to supply the financing.As of December, Mazda had practically 500 billion yen in cash and round 63 billion yen in securities. The automaker has additionally secured a credit score line of round 200 billion yen from Sumitomo Mitsui Banking and different monetary establishments.Nevertheless, its free cash movement for the April to December 2019 interval was a unfavorable 130 billion yen. The brand new financing would assist the automaker put together for a drawn-out pandemic.The pandemic has enormously impacted Mazda. Its unit gross sales in February dropped 14% from the identical month final yr, then March adopted with a 33% tumble. A lot of the automaker’s essential crops in Japan and overseas have been suspended for the reason that finish of that month.The corporate’s gross sales outlook for Japan and North America had been dire earlier than the pandemic. Mazda in February downgraded anticipated gross sales for the fiscal yr resulted in March to 1.5 million automobiles, a 60,000-unit plunge from the earlier fiscal yr. It had initially anticipated to promote 1.55 million automobiles.In November, Mazda revised its working revenue outlook to 60 billion yen, down 27% from the earlier yr; it had beforehand deliberate to publish a 110 billion yen working revenue.Final yr, the automaker stumbled when it tried to implement a brand new pricing technique. It launched two new fashions in 2019 however hooked up excessive sticker costs that alienated clients. This resulted in decreased gross sales in North America, which accounts for practically 30% of Mazda’s unit gross sales.The carmaker additionally tried to restrict seller incentives, which are sometimes used to supply showroom reductions, as a method to construct its model value. However this tactic additionally backfired, resulting in lackluster gross sales across the globe.Mazda has been out and in of economic problem for many years now. Within the late 1990s, after recording internet losses for 5 consecutive years, it was introduced underneath the wing of U.S. automaker Ford Motor. The association helped the Japanese firm get again on its ft because it launched a sequence of profitable fashions, together with the CX-5 SUV.However Mazda by no means made it massive, and in 2017 Toyota Motor took a 5.1% stake.Mazda will not be the one automaker to be waylaid by the virus. Toyota has requested a credit score line of 1 trillion yen from banks, and Nissan Motor is searching for 500 billion yen in financing. Within the U.S., Basic Motors has drawn $16 billion from its credit score traces, and Ford has secured $15.four billion.