Gotcha. You thought it was from the US government didn't you? HAHAHAHAHAHA!
Made you look.
Toyota, Facing First Loss in 59 Years, Seeks Loans From Japan
March 3 (Bloomberg) -- Toyota Motor Corp., 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 citing anyone. Toyota Financial Services Corp. spokesman Toshiaki Kawai said the unit is in talks with state-owned Japan Bank for International Cooperation, without confirming the 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. Incoming President Akio Toyoda is adding to the company’s reserves as the global recession also forces 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.”
Automakers usually raise funds through bonds and loans for their financial companies to offer loans for their customers. The government aid would mostly be used to help offer loans to customers in North America, Toyota Financial’s Kawai said.
Toyota sold 80 billion yen in 10-year bonds priced to yield 2.012 percent last month. That compares with 150 billion yen of 10-year bonds sold in August 2002, priced to yield 1.337 percent.
Laying Up Cash
“Toyota is trying to lay up as much cash as it can to protect itself in a worst case scenario,” said Yasuhiro Matsumoto, a senior analyst at Shinsei Securities Co. in Tokyo. “The government loans, combined with the bond sale, show how much Toyota fears the global financial crisis.”
Japan will use some of its foreign-exchange reserves to lend to the state-owned corporation that gives financing to Japanese companies operating abroad, Japanese Finance Minister Kaoru Yosano said today.
Toyota follows other carmakers seeking government help as sales plunge worldwide. GM has received $13.4 billion in U.S. aid and is seeking more to keep its operations in its home market running through this month. France granted PSA Peugeot Citroen and Renault SA a total of 6 billion euros in five-year loans last month. In the U.K., carmakers are seeking support for their finance units from the Bank of England. Mitsubishi Motors Corp. has gotten subsidies from Japan’s Ministry of Health, Labor and Welfare to help pay wages, as it cuts domestic production.
Slashing Production
Toyota, the maker of the Corolla compact, may slash production 12 percent next fiscal year, it said yesterday. Toyota’s sales in Japan plunged 32 percent last month. In the U.S., sales also dropped 32 percent in January. Worldwide vehicles sales may fall 14 percent to 55 million units in 2009, according to Nissan Chief Executive Carlos Ghosn.
In response, automakers are shutting factories and cutting jobs. Toyota plans to halve the number of contract workers in Japan to 3,000 by March 31. GM last month said it is cutting another 47,000 jobs globally, as it reported a $30.9 billion annual loss. Volkswagen AG, Europe’s largest carmaker, on Feb. 28 said it will cut all 16,500 temporary jobs globally and shuttered five factories in Germany last week.
The Toyota City, Japan-based company has 2.34 trillion yen in loans and bonds maturing this year, according to data compiled by Bloomberg. The company had 2.3 trillion yen in cash reserves as of Dec. 31.
The extra yield over government debt of similar maturity that investors demand to own Toyota’s 1.22 percent bond due 2011 has more than doubled to 56.75 basis points as of yesterday from September according to data compiled by Bloomberg.
Toyota fell 0.3 percent to 3,060 yen, at the close of trading in Tokyo. The shares have risen 5.3 percent this year compared with a 19 percent drop in the benchmark Nikkei 225 Stock Average.
good. I hope their USA division goes ing bankrupt
These companies sell us things and then send the money back to their home countries. Japan, China, etc..
this . Enough.
PATRIOTIC SPENDING!! LET'S DO IT. Support only American companies when buying a car.
no way.
I'll pass on the feces.
traitors. Ford and other icons of american culture are dying.
yeah, quality, be a patriot! buy regardless!
not all american cars are you dumb .
i'd buy american if they were easier on the wallet
The Ford focus costs around $15,000.
And it is a piece of feces.
lol at everyone who buys into the hype that a foreign car is automatically better. hahahahahahahahahahahahahaha
toyota and their ugly ass cars
So I should buy an overpriced car of inferior quality just so some retired union worker can still get a pension check?
Nope.
On the other hand, if Toyota is projecting a loss, too ing bad. Not like they are the only company who is losing/projected to lose money in this economic recession.
So did Packard and Studebaker. Were they bailed out?
And it's a piece of .
If the Japs hadn't started selling autos here, you would still be getting the junk from the "Big 3" you always got. Cars that start leaking oil like a sieve by the time you get 30 K on them.
Jap companies are what made the "Big 3" start producing decent cars.
Right on!
I wonder where they learned this ty, immoral, criminal business practice?
.........
i guess i should have mention looks and power too
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