Mazda Motor Corp., burdened with the second-worst credit rating among Japan's carmakers and a 62 percent surge in short-term borrowing this fiscal year, plans to apply for government aid as it consumes cash.
"We can't sell bonds right now," said Nobuyoshi Tochio, general manager of Mazda's financial services division. "The market isn't functioning. Conditions are really bad."
Mazda used ¥174 billion in cash last quarter as sales of Mazda6 sedans plunged in the U.S. and Europe. The Hiroshima-based company may turn to the government for low-interest loans because its junk rating prevents it from following Toyota Motor Corp. in tapping capital markets.