The Japanese Ministry of Economy, Trade, and Industry (METI) has announced that a special consulting service will be established for small businesses as well as small-scale business persons who will be affected by the halt in lightweight vehicle production due to Mitsubishiâ€™s fraudulent gas milage claims.
For small and micro-scale enterprises that are seeing dwindling performance due to the halt in production and sales of Mitsubishi lightweight vehicles, the METI stated that they would be enacting support measures to help finance these ventures via public financial institutions.
Participants in the aforementioned special consulting service include the national Japan Finance Corporation, the Okinawa Development Finance Corporation, Shoko Chukin Bank, the Credit Guarantee Corporation, Chambers of Commerce and Industry, the Central Federation of Societies of Commerce and Industry, and the National Federation of Small Business Associations, all contributing to what will be termed â€œthe Special Consulting Service for Automotive Supply Chain-Related Small Business Support Measures (as Related to Mitsubishi Motors).â€
Furthermore, this service will conduct a certain amount of direct and indirect dealings with Mitsubishi and there will be put into operation a grade 2 safety net that will guarantee 100% of the amount financed at a special credit limit different from typical guarantees for small scale businesses and enterprises that project a certain amount of decline in sales. Preliminary consultations regarding the grade 2 safety net will begin between credit guarantee corporations throughout the country.
At government financial institutions such as the Japan Finance Corporation, the Okinawa Development Finance Corporation, and Shoko Chukin, â€œsafety net loansâ€ are already being given out for small businesses that are seeing declines in sales and deterioration of industry due to the halt in production of Mitsubishi lightweight vehicles.
Otherwise, the Japan Finance Corporation, the Okinawa Development Finance Corporation, Shoko Chukin, and the Japan Federation of Credit Guarantee Corporations are easing the conditions based on small businessesâ€™ current states of affairs in terms of postponement of repayment for existing loans, expediting procedures for getting loads, and making securities more flexible.
[Translated by Bryce Clarke]