The latest automobile manufacturer to hit the skids and seek special loans is Toyota Motor Company. Finding it difficult to raise money in the U.S., Toyota Motor is reportedly seeking emergency funding of about 200 billion yen ($2 billion) in dollars from a governmental institution in Japan to support its U.S. auto-financing operations.
So far, no other Japanese auto company has sought loans, but with little progress in any recovery, can Honda or other companies be far behind?
The Japanese government funded an emergency JBIC program late last year to provide loans and debt guarantees to help Japanese firms finance operations overseas. Today it was announced that the government will fund this program with 5 billion dollars. No firm word yet if Toyota will receive their requested money, but it odds are it will.
With the DOW drop yesterday to under 7,0000 and AIGs report of a staggering loss, no one or company seems safe any longer.
A minor bright spot I saw over the week end was a report that auto parts store have seen an increase in business, as more people are repairing what they have instead of purchasing a new or newer car.
In the last recession I noticed the same thing in home improvement stores. People were fixing up what they had instead of moving up.
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