Japan’s Development Bank (DBJ) has confirmed a potential investment of up to JYP50bn (US$618m) for the country’s automotive suppliers, although it appears this is initially an intention and not yet concrete.
It is also unclear which financial institutions will be providing the money, that appears to be in the form of loans to support Japan’s automotive supply chain following the country’s enormous recent earthquake.
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The DBJ has been working with the Japan Auto Parts Industry Association (JAPIA) concerning the new fund.
“The intention is to have JPY50bn [although] the people who are providing the funds have not been decided yet,” a person familiar with the matter in Japan told just-auto.
“It [fund] is just established, not decided yet. The money is a kind of long-term loan.”
DBJ president Minoru Murofushi noted in a statement the fund would be used to alleviate Japanese suppliers encountering problems with power supply and industrial production, which were hit by the massive after-effects of the tsunami and subsequent earthquake.
“This fund is for companies to support the automotive supply chain, a key industry in Japan, to be funded through long-term stability of capital funds, including reconstruction, restructuring [and] reorganisation to support and strive [for a ] robust supply chain and restore confidence as suppliers,” he said.
A spokeswoman for JAPIA in Tokyo told just-auto by email the fund was not only for JAPIA members but also for related companies, although no further details were available about which these were.
Recent reports indicated JAPIA was aiding around 200 Japanese parts makers – down from 500following the earthquake in March.
