As the recession continues to hammer the global car market, three major Japanese auto makers – Honda, Mazda and Nissan – are mulling asking the government for loans to prop up their US customers. They would join the world's largest carmaker, Toyota, which has already requested the Japanese government to help it through the credit crunch.

"Due to current economic conditions, we are considering using public funds in addition to our usual sources of funding," a Honda spokeswoman said. The funding would come from the state-backed Japan Bank for International Cooperation, but the companies refused to specify how much they were asking for.

Toyota, through a wholly-owned financial subsidiary, is asking for about 200 billion yen ($3.17 billion), according to Japanese media. The carmaker has said it is seeking aid but has not officially confirmed the amount.

Nissan's spokesman Mitsuru Yonekawa said, "We are not in a situation where we desperately need funds, but as the opportunity has presented itself, we believe we should make the best use of whatever funding is available.''

While Mazda spokespersons acknowledged that they were considering asking for a bailout, they too refused to specify details. Mazda, whose US sales plunged 30 per cent in February to 16,401 vehiclesis, is partly owned by Ford Motor Corp.  

The three companies would follow Toyota Motor Corp, Japan's biggest carmaker, in seeking loans from the government as the global recession hammers auto demand. The Japanese carmakers depend heavily on exports, and US auto sales in February slid to their lowest rate since December 1981. 

Japan's Nikkei newspaper said today that among Honda's models, only its Fit small car and Acura TSX sports sedan posted gains in US sales last month. The company may request at least 10 billion yen ($102 million) from the government, the newspaper said.

Domestic sales plummet
Sales of new vehicles in Japan fell by almost a third in February as consumers continued to shun big, expensive items, new figures reveal.

Sales of new cars, buses and trucks during the month were down 32.4 per cent year-on-year, at 218,212 units. This was the seventh consecutive monthly fall in auto sales.

All major carmakers suffered high double-digit declines, with sales at Toyota, excluding its luxury Lexus brand, dropping by 32 per cent. Sales at its Lexus division fell by 63 per cent. Honda was less badly affected, but still saw sales fall sharply by 21 per cent. 

While releasing the figures, Kentaro Nakata of the Japan Automobile Dealers Association said, "Auto demand remains depressed and it is very difficult to predict an upturn in the market right now." 

Nissan's sales fell by 35.2 per cent to 40,694, while Mazda sold 11,312 units, a year-on-year drop of 40.5 per cent from February 2008. 

Suzuki Motors suffered the least, with its sales down 16.1 per cent.