Mar 6, 2009 -
Toyota Requests Loan From Japanese Government
The auto industry has been buzzing with ongoing news and updates regarding the Detroit Bailout, but American automakers aren’t the only ones in need of government cash. Toyota is now seeking loans from the Japanese government to help it weather the global financial crisis and make cash available despite tightening credit.
Toyota is expecting an operating loss of about $4.6 billion this fiscal year, due largely to falling global new car demand. But the automaker’s financial arm, Toyota Financial Services, is also struggling to make cash available for those consumers that actually to want to purchase a new car. As a result, Toyota is seeking a loan for about $2.1 billion. With sales dropping in nearly every auto market, Business Equipment Leasing believes the result was inevitable. Despite the bold move, Monroe Toyota dealers remain optimistic thanks to Toyota's strong and diverse product lineup.
With financing becoming harder and harder to find for car buyers, particularly in the North American auto market, Boston Used Car says that even cash laden giants like Toyota are looking for ways to strengthen its credit arm. Meanwhile, Westminster Toyota dealer recognizes that debt for nearly all automakers is rising, and automakers are looking for support wherever they can get it.
What further complicated the financial services firms is the need to supply financing for 0% or low-interest loans, as it is currently the best method for encouraging potential new car buyers to visit Tustin Toyota dealers and other dealerships. Meanwhile dealers are also trying to stay afloat as well, and in many cases are refocusing on other profit centers to maintain momentum.
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