Toyota is now in Financial Trouble or not
Now the Japanese Government is being asked to bailout a large Auto Maker. As we all know Toyota is a major Automaker and is a big part of the Japanese. They have a Financial Services company that gives loans to help buy thinks such as cars. Did the US Economy Recession effect them? They were a solid company a year ago. Is what they want a bailout or not, they say they are asking for loans. Toyota Financial Services is asking for;
Toyota Financial Services Request
Toyota has made money for the last 59 years, but now showing a loss. They are asking for loans of $2 billion (200 billion yen). If they get it they may be in the club of Automakers that have been bailed out. Should they be bailed out or not? Like I have said before, I feel let them fail, a new company will take it’s place. Some business operate with No Debt and many billions in Reserve. They aren’t asking for a bailout, they are good operators.
Toyota Loss
It is reported that Toyota the auto maker expects a net loss of 350 billion yen after vehicle sales dropped 31% last quarter. By us bailing out Automakers are we giving other businesses in other parts of the world an excuse to ask for a bailout from their governments?
Toyota Raising Money in Loan request and selling Bonds
Not only is Toyota asking for loans, they also are selling bonds to raise money. Yusuhro Matumoto, a senior analyst at Shinei Securities Co, in Tokyo said, “Toyota is trying to lay up as much cash as it can to protect itself in a worst case scenario.” “The government loans, combined with the bond sale, show how much Toyota fears the global crisis.”
Reports on Toyota City
According to Bloomberg, The Toyota City, Japan-based company has 2.34 Trillion Yen in loans and bonds maturing this year. The company has 2.3 Trillion Yen in Cash Reserves as of Dec 31. To me that doesn’t sound to bad. Source Bloomberg.com
Your views
So what are your views? Do they need a bailout, loans or not? Yes, they are also cutting production and jobs like any business would that has a reduction in sales and income. But why give them a bailout or loan from the Government. Business don’t get a bailout when they run out of money, they just close the door. In the town I work in, four more businesses are closing up. Let me know your thoughts or ideas. Also please join my facebook and Linkedin using my e-mail of mills.management@hotmail.com. Have a great day. Follow me at twitter Bruce Mills at http://twitter.com/money720
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