03-05-2009, 11:00 AM | #1 |
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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 |
03-05-2009, 03:37 PM | #2 |
Lotus Factory Guy
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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.
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03-05-2009, 05:10 PM | #3 | |
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Quote:
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? |
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