Japan automakers Mitsubishi, Mazda seek govt subsidy

TOKYO: Japan's Mitsubishi Motors and Mazda said on Wednesday they had applied for a government subsidy to help pay workers at plants that have been idled due to the auto crisis.

Japan last month loosened its criteria for companies to apply for aid to cover half of the wages of workers on days when plants suspend operations, a move aimed at supporting firms weather the recession.

"We've applied for the subsidy and the application has been accepted by the labour ministry," said Kai Inada, a spokesman for Mitsubishi Motors Corp., Japan's fourth-largest automaker.

The subsidy will go towards the wages of at least 6,200 workers, Inada said.

Mazda Motor Corp., Japan's fifth-largest automaker, said it had applied for the same subsidy.

Mazda last applied for the same subsidy in 1996, she said.

Under Japanese law, companies have to pay at least 60 per cent of wages to workers on days when operations are halted to adjust production.

Japanese manufacturers have enjoyed fast growth in recent years thanks to strong sales, particularly overseas.

But they have not been immune to the global economic downturn, even if they are in better shape than the US Big Three automakers, whose executives were forced to beg Congress for financial aid to stave off bankruptcy.