Toyota’s sales in Japan plunged 32 percent last month.
Tetsuya Komatsu and Naoko Fujimura –
Bloomberg – Mar. 3, 2009
The stalwart known for its worldwide automobile manufacturing prowess appears to be having trouble in these tough economic times.
Holy Smokes! -- Ed.
Toyota, forecasting its first loss in 59 years, is seeking loans from the Japanese government as private investors demand up to 50 percent more in interest for the company’s debt.
The company’s financial unit may ask for 200 billion yen ($2 billion) in loans, public broadcaster NHK reported today, without saying where it got the information. Toyota Financial Services Corp. is in talks with state-owned Japan Bank for International Cooperation, said Toyota Financial spokesman Toshiaki Kawai without confirming the timing or amount.
The carmaker expects a net loss of 350 billion yen after vehicle sales in the U.S., traditionally Toyota’s most profitable market, plunged 31 percent last quarter. The global recession has also forced General Motors Corp. and Chrysler LLC to get bailouts from the U.S. government.
“Toyota should take advantage of anything it can to get through this crisis,” said Hitoshi Yamamoto, chief executive officer of Tokyo-based Fortis Asset Management Japan Co., which manages $5.5 billion in Japanese equities. “Money is not flowing in the capital markets.”…
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