Go Back   DealershipForum.com > Asian Franchises > Toyota/Lexus > Sales

Notices

Reply
 
Thread Tools Display Modes
Old 03-05-2009, 11:00 AM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default Toyota requests $2 Billion loan from Japanese Government

Citing the tight credit markets, Toyota has requested a $2 Billion loan from the Japanese Government to provide capital for their finance unit.

While this story filled the headlines a few days ago, I thought the following Business Week story was interesting because it made reference to the fact that Toyota has $20 Billion in cash stashed away.

I don't know whether Toyota just wants access to cheap capital from the Japanese Government, or whether they're genuinely concerned about preserving the $20 Billion they have to ride out the recession?

Here's a link to the Business Week story: http://www.businessweek.com/autos/au...a_wants_a.html
XDCX is offline   Reply With Quote
Old 03-05-2009, 03:37 PM   #2
okcarl
Lotus Factory Guy
 
Join Date: Jan 2008
Posts: 182
Default

As we have seen with GM, 20 Billion for a company as big as Toyota is not that much. Especially with 40% sales declines here in the US. They are going to start hemoraging cash as well. They got greedy and spent their massive cash reserves on new factories etc. thinking the good times would never end.
okcarl is offline   Reply With Quote
Old 03-05-2009, 05:10 PM   #3
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by okcarl View Post
As we have seen with GM, 20 Billion for a company as big as Toyota is not that much. Especially with 40% sales declines here in the US. They are going to start hemoraging cash as well. They got greedy and spent their massive cash reserves on new factories etc. thinking the good times would never end.
That's a great point - amazingly $20 Billion can go pretty fast when sales drop off 40%.

The other variable that will be interesting to watch is how Toyota addresses layoffs if they ever reach that point. When the Tundra Plant in Texas was closed for an inventory adjustment they kept the employees on the payroll.

I wonder if they'll continue to do that if the economy worsens?
XDCX is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Government Motors dodgequality Automotive Discussions 11 09-12-2010 11:10 PM
Need more government? crowe General Discussions 4 10-16-2009 12:52 PM
Crazy requests as of late Rod Barajas General Discussions 7 03-08-2008 06:02 PM
Toyota Financial Services offers 84 Month Loan Term XDCX Finance 0 01-06-2008 09:08 PM


All times are GMT -7. The time now is 01:46 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016