The Aichi regional government in Japan said it would offer JPY400bn (US$3.74bn) in emergency loans for small and mid size companies, including struggling Toyota suppliers, to help them through the COVID19 coronavirus crisis.
Aichi prefecture is Japan's industrial heartland located near the capital city Tokyo. It is home to Toyota City, Toyota Motor's global headquarters and main manufacturing base in Japan.
The carmaker is the region's largest employer and was described by Aichi governor Hideaki Ohmura as "not only the backbone of the economy of Aichi Prefecture, but also of all of Japan".
Ohmura claimed Toyota and its affiliates account for more than half of the factories in Aichi prefecture, employ around 55,000 people and produce around 40% of all cars made in Japan. Many more people are employed in independent medium and small suppliers.
This week Toyota said it expected to cut production by 40% at its factories in Japan in May due to plunging global demand for vehicles. Falling sales in the US and the Middle East in particular have had a significant effect on exports from Japan.
Toyota announced broad based plant suspensions of varying periods in May, while the Toyota Tahara, Hino Hamura and Gifu Auto Body plants have been reduced to single shift production throughout May and June.