It’s not only the Detroit three automakers seeking loans anymore. Toyota Motor Corp’s financing arms has asked the Japanese government for a loan as it faces tighter credit due to the global economic crisis. According to company officials, Toyota is looking at a $4.6 billion loss this fiscal year and is seeking a loan of about $2.1 billion through Toyota Financial Services.
However, don’t mistake the choice to seek loan as Toyota being weak.
“Toyota is not in danger. It’s out to get the lowest price for funding that the strength of its credit can get,” Yasuaki Iwamoto, an analyst at Okasan Securities, told Reuters. “On the balance sheet, it doesn’t matter if the funds are private or public.”
A Toyota official, Mio Sugito, said that Toyota Financial Services is in talks with state-back Japan Bank for International Cooperation and is looking for a loan to help cover the rising cost of credit. She said that no decision has been made on the size of the loan or the timing.