Transcript in English
The first company has gone bust as a result of reduced production at Mazda. Laden with 5 billion yen in debts, subcontracted parts manufacturer Takiguchi in Kure is filing for bankruptcy.
The company which is based in Naishiro in Kure was having its profits squeezed by the low prices the parts it produced were getting, but it was reduced orders as a result of the drastic reduction in production by Mazda, which killed hopes of recovery, that sealed its fate. The company will file for bankruptcy next month and is thought to be 5 billion yen in debt.
The company had letting people go since last November and on January 23 laid off the last 40 employees. They will receive no redundancy pay.
All they said was, "I'm sorry, we've gone bust". No redundancy, no payment of any kind, said one worker.
Before the war, Takiguchi was established as a designated factory of the Japanese navy. The current company was established in 1957, producing parts for Mazda cars and doing welding work. At it's peak in 1991 it employed over 100 people.
This is the first company to go bust since the car industry slow down began last autumn.
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