It is being reported that Toyota is seeking $2.1 billion in loans from the Japanese government to help its finance arm (Toyota Financial Services) to cut costs.
“Toyota is not in danger. It’s out to get the lowest price for funding that the strength of its credit can get,” said Yasuaki Iwamoto, an analyst at Okasan Securities. “On the balance sheet, it doesn’t matter if the funds are private or public.”
Mio Sugito, an official at Toyota’s business management group, said that Toyota is in talks with the Japan Bank for International Cooperation.
Sugito also stated that Toyota may seek assistance from other countries.
It’s also being rumored that Honda is going to be seeking loans as well, a total of $100 million to loan to U.S. customers.
Honda and Toyota sales in the U.S. were both down last month, with both automakers posting declines over 30 percent.
Full Story: Reuters
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