Harare — Willowvale Mazda Motor Industries is on the verge of collapse after failing to secure US$3,4 million to repay the debt it owes Itochu, a Japanese company, which supplies Mazda kits.

The deadline for the repayment of the loan is March 18 this year.

WMMI is, however, sitting on a vehicle stock worth more than US$5 million, which it is failing to sell because of non-payment of the debt.

"We have been given up to March 18 to repay our debt and if we fail, the Japanese have indicated that they will revoke the credit privilege to us.

"We are currently sitting on a US$5 million stock of vehicles which we are failing to sell unless we pay up.

"The cars for now are not in our hands as the kits supplier is actually controlling the stock," he said.

Mr Kumalo said efforts to get credit from banks failed.

"We plead with Government to immediately bail us out of this situation, otherwise that will be the end of it," he said.

Chairman of the Parliamentary Portfolio Committee on State Enterprises and Parastatals Mr Larry Mavima said his committee would table the issue as a matter of urgency so as to come up with a bailout strategy for Willowvale.

"Government is not happy with the loss of jobs, the closure of this crucial company will greatly affect many sectors.

"Government is committed to protect and revive crucial sectors of the economy like this one," he said.

WMMI managing director Engineer Dawson Mareya said the company would try its best to keep afloat.

"We are not sitting idle while we are waiting for the clearing of our debt.

"The company is currently retraining its staff and refurbishment of the whole plant," he said.

The closure of WMMI will see many companies folding.

Glass supply, tyre manufacturing, paint supply, and general motor spare parts manufacturers will also go out of

By The Herald