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Time for change
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Discussion Starter #1
TOKYO, March 3 (Reuters) - A Toyota Motor Corp (7203.T) financial services unit has applied for about $2 billion in loans backed by the Japanese government, as the financial crisis threatens funding at the world's top automaker, state TV broadcaster NHK said on Tuesday.

With credit markets worldwide in turmoil, Toyota may be the first of a string of Japanese companies with high credit ratings to turn to state-backed loans prior to the closing of books for the business year at the end of March.

Credit default swaps on auto makers in Asia and Europe are at steep discounts as investors worry about liquidity and short-term debt maturities at carmakers' financial services operations. [ID:nL2520864]

Moody's implied ratings for Toyota and American Honda Finance Corp, based on credit default swaps, are both many notches lower than the agency's actual ratings for the two companies.

Wholly owned car-loan financing firm Toyota Financial Services has asked the state-backed Japan Bank for International Cooperation for a 200 billion yen ($2.1 billion) loan to help cover rising credit costs in the United States, NHK said without citing sources.

Toyota spokesmen said they were checking on the report.

Carmakers worldwide are reeling from a collapse in consumer demand since last year that has forced them to cut production and shed jobs.

Finance company GMAC, the main lender to struggling automaker General Motors Corp (GM.N), has been hit by losses in its auto and mortgage units, but won a $6 billion government bailout in December and a ticket to tap lower-cost funding.

Toyota faces an operating loss of 450 billion yen for the year to March, as sales tumble in its biggest markets of Japan, North America and Europe. [ID:nTKU103280] [ID:nT73219]
 

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Time for change
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6,868 Posts
Discussion Starter #6
Well, it's not that Toyota isn't losing money, it's just that toyota is viable, and will be profitable again during any type of normal economy.

Whereas GM... Not so much. If GM was allowed to close down some of their dealership networks, and plants/workers without it costing them a 150 billion they would have already done it by now... : /
 

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I Can Has EBT?
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3,274 Posts
Toyota Motors stock is currently $61. They probably see US Government paying off dead car manufacturers at gun point, and decided to grab $$$ for themselves.
 

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Time for change
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Discussion Starter #9
^ no Mobil is still turning a profit. Toyota isn't in the black at the moment, neither is Honda for that matter.
 

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Weapon of Mass Affection
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3,780 Posts
^ no Mobil is still turning a profit. Toyota isn't in the black at the moment, neither is Honda for that matter.
Maybe you don't understand that Toyota has about 200 billion in their backpocket. They really don't need this money, they are doing it because they can and because it takes less effort for them than to spend that money.
 

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Maybe you don't understand that Toyota has about 200 billion in their backpocket. They really don't need this money, they are doing it because they can and because it takes less effort for them than to spend that money.

You're an idiot. They have about 23 billion in cash and the entire stock market value of the company isn't even 200 Billion. GM lost over 80 million dollars per day every day of 08. Toyota is losing money now also and they know that new car sales aren't going up for a long time. At these levels they have a year or two before they will be asking for more hand outs. Stick to posting about video games and shit and leave the big boy stuff to the rest of us. Perhaps I've been too harsh, you're only off by 180 BILLION, fuckstick.

http://finance.yahoo.com/q/ks?s=TM
 

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Weapon of Mass Affection
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I didn't say that. But I am an idiot I must have my facts all mixed up. Or maybe you just took what I said to mean that their market capitalization was the money they had in the bank.

I am so fucking retarded I cannot tell.
 

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Time for change
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Discussion Starter #16
Well, actually man, you said 200 Billion in their back pocket.
I have nothing against you, I like ya actually, but I would have more respect for you if you were to say.

"Wow I had no idea that Toyota wasn't as well off as I thought!"

But, when you say it's in their back pocket. You're inferring intentionally btw, that they money they have is liquid or near liquidity.

Which, you're actually not even close to being correct. Everyone throws around Billions like we're talking about a 2 Dollar bill... It's a LOT of money. After debts repaid, Toyota would be worth about 25-35 Billion, depending on the buyer. Which again, is nothing to scoff at.

Which is why this should hurt your life when you hear about Obama wanting to spend 3 Trillion by the end of the year, on TOP of cutting the debt in half. Now my question is, is he cutting the debt in half BEFORE he spends all the money, or AFTER he spends all his money?

So Lets say were at 4 Trillion now. He spends $4 Trillion more. And then he prints 4 Trillion worth of money, and says HEY LOOK GUYS! I kept my promise only 4 TRILLION IN DEBT! :rofl:
 
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