Nissan, Mazda may join Honda, Toyota in seeking Japanese gov't loans

John Neff — Fri, 06 Mar 2009 16:58:00 EST

Filed under: Government/Legal, Honda, Mazda, Nissan, Toyota, Earnings/Financials

Toyota has already stepped up and asked the Japanese government for a $2 billion loan to shore up its U.S. lending arm, Toyota Motor Credit Corp. We've also heard that Honda may do the same. Add Nissan and Mazda to the list now. The four biggest Japanese automakers will now all likely ask for government loans to help ensure that sufficient credit is available for U.S. customers to purchase their cars and trucks. While all four have seen sales fall less sharply than General Motors, Ford and Chrysler, each is still experiencing historically low sales in their biggest market: the U.S. Fortunately, the Japanese government has a lot of cash lying around, around $1 trillion in a foreign currency stockpile. About $5 billion has been earmarked and can be funneled through the nation's state-backed bank, the Japan Bank for International Cooperation. Only Toyota has officially requested loans, but Nissan, Honda and Mazda have all confirmed they will apply if the money's available.

[Source: Automotive News, sub. req'd | Photo by NICHOLAS RATZENBOECK/AFP/Getty]

Nissan, Mazda may join Honda, Toyota in seeking Japanese gov't loans originally appeared on Autoblog on Fri, 06 Mar 2009 16:58:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota Financial seeking loans from Japanese gov't

Jeremy Korzeniewski — Tue, 03 Mar 2009 11:40:00 EST

Filed under: Government/Legal, Toyota, Earnings/Financials

LR: Toyota Vice Chairman Katsuaki Watanabe, Toyota President Akio Toyoda and Chairman Fujio Cho

Toyota Financial Services has reportedly applied for loans equaling $2 billion (200 billion yen) from the state-backed Japan Bank for International Cooperation. Much of these funds would presumably be used to lend money to new car buyers in the United States, Toyota's largest and most profitable market. If granted, Toyota would join American automakers General Motors and Chrysler on the bailout bandwagon.

Last month, Toyota sold roughly $2 billion (200 billion yen) worth of 10-year bonds at rates much less favorable than what the automaker had previously been accustomed to. That and the aforementioned loan request are actions likely taken to shore up Toyota's falling cash reserves, which some have estimated to be as low as $18.5 billion at the end of January.

It's widely expected that Toyota will post a net loss of as much as $3.5 billion (350 billion yen) for the fiscal year ending in March. This would be the Japanese automaker's first ever operating loss for a full 12-month period, and it further proves how dire the current economic conditions are for all around the globe. Thanks to all who sent this in!

[Source: Bloomberg | Photo by Junko Kimura/Getty]

REPORT: Toyota Financial seeking loans from Japanese gov't originally appeared on Autoblog on Tue, 03 Mar 2009 11:40:00 EST. Please see our terms for use of feeds.

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