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For those that delight in bashing Chrysler, GM and Ford as somehow uniquely distressed compared to others, it's the entire global auto industry that is labouring under overcapacity. Overcapacity that was built up over many, many years, with much taxpayer and government incentives, in virtually every country that desired it's own "strategic" auto manufacturing industry.
Toyota Borrows From Japan-Owned Bank to Finance U.S. Car Sales
April 3 (Bloomberg) -- Toyota Motor Corp. borrowed from a Japan-owned bank in the first quarter to finance U.S. car sales as private investors demanded up to 50 percent more interest for the company’s debt.
“Our higher cost of funds shocked us,” following the bankruptcy of Lehman Brothers Holdings Inc. in September, George Borst, chief executive officer of Toyota Financial Services- America in Torrance, California, said yesterday. “We’ve been turning over rocks everywhere” to find capital to lend to buyers of Toyota, Scion and Lexus automobiles in the U.S.
Toyota, the world’s largest carmaker, is offering near- record incentives to lure consumers as demand plunges. The company posted better-than-expected sales in the U.S. last month in part because it increased incentives per vehicle by 88 percent from a year ago, according to Edmunds.com.
“Toyota needed the loan as it’s not making money in the U.S.,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo, which manages $28 billion. “This will make it easier for other carmakers to ask for government aid.”
The carmaker’s finance arm borrowed an undisclosed amount from the bank, Borst said. Honda Motor Co. and Mazda Motor Corp. have said they also plan to apply for loans from the Japan Bank for International Cooperation, a government-controlled bank. Both carmakers forecast losses for the quarter ended March 31...
...Toyota has forecast a loss of 350 billion yen ($3.5 billion) for the year ended March 31 and it may post a loss of 224 billion yen in the current fiscal year, according to the median of 20 analyst estimates, compiled by Bloomberg...
...On March 3 Japanese media reported that Toyota, the world’s largest automaker, was negotiating a five-year loan of about $2 billion from JBIC. Toyota executives denied that the loan constituted a government “bailout.”...
April 3 (Bloomberg) -- Toyota Motor Corp. borrowed from a Japan-owned bank in the first quarter to finance U.S. car sales as private investors demanded up to 50 percent more interest for the company’s debt.
“Our higher cost of funds shocked us,” following the bankruptcy of Lehman Brothers Holdings Inc. in September, George Borst, chief executive officer of Toyota Financial Services- America in Torrance, California, said yesterday. “We’ve been turning over rocks everywhere” to find capital to lend to buyers of Toyota, Scion and Lexus automobiles in the U.S.
Toyota, the world’s largest carmaker, is offering near- record incentives to lure consumers as demand plunges. The company posted better-than-expected sales in the U.S. last month in part because it increased incentives per vehicle by 88 percent from a year ago, according to Edmunds.com.
“Toyota needed the loan as it’s not making money in the U.S.,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo, which manages $28 billion. “This will make it easier for other carmakers to ask for government aid.”
The carmaker’s finance arm borrowed an undisclosed amount from the bank, Borst said. Honda Motor Co. and Mazda Motor Corp. have said they also plan to apply for loans from the Japan Bank for International Cooperation, a government-controlled bank. Both carmakers forecast losses for the quarter ended March 31...
...Toyota has forecast a loss of 350 billion yen ($3.5 billion) for the year ended March 31 and it may post a loss of 224 billion yen in the current fiscal year, according to the median of 20 analyst estimates, compiled by Bloomberg...
...On March 3 Japanese media reported that Toyota, the world’s largest automaker, was negotiating a five-year loan of about $2 billion from JBIC. Toyota executives denied that the loan constituted a government “bailout.”...
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