Not just the big three.

[horsewidower]

Looks like they don't just compete in Nascar:

http://www.freep.com/article/20081223/BUSINESS01/312230001/1002

[SpiderGearsMan]

Re: Not just the big three.

Toyota's financial unit has asked for an emergency loan from a state-backed lender, with reports putting the figure at more than $3 billion.

The world's biggest car maker says the international financial situation is squeezing its business, forcing it to ask for an emergency loan from the Japan Bank for International Cooperation.

It is the first time the state-backed bank has been asked to lend to a Japanese car buyer.

It is being reported that Toyota is asking for 200 billion yen.

The world's biggest auto manufacturer is expecting to report a $7 billion operating loss later this month

[min301]

Re: Not just the big three.

See, this is a global issue, not just here.

[bobbowtie]

Re: Not just the big three.

good hope there ass go's out of business so some of are own get back to work

[Eric68]

Re: Not just the big three.

Toyota does not have nearly the debt that GM and the big three. They are in a much better position to survive this than the others.

A $1.7B loss is a drop in the bucket for Toyota . . . they have cash reserves somewhere between $20 Billion and $80 Billion.

I don't see how this sales slump in the auto industry can last for too long. Cars wear out and will have to be replaced. Maybe a year or two until the credit market frees up, but I don't see how the industry could stay that bad for much longer. (knock on wood)

Good article, but the Free Press is a Detroit paper that loves to deliver any possible bad news about Toyota or any foreign manufacturer for that matter. You know the old saying . . . misery loves company.

Thanks for posting!

[Scott Liggett]

Re: Not just the big three.

The problem is that people are hanging onto cars longer than they used to. For a long time people would trade in a car because it had a few problems instead of just fixing them. Now, they are fixing them and driving them longer. It's all about Americans are saving money now instead of spending. The past ten years we Americans have been charging everything and not saving at all. We are now doing what we should have ten years ago and, unfortunately, retailers and auto companies are paying the price of our frugalness.

[SpiderGearsMan]

Re: Not just the big three.

people have been running car financing forever , it is the only thing that makes money in the showroom
they are taxed to death , thus the need to charge things
government mandates and legacy costs drive up the price of cars
the elite want people to drive spartan little cars , eat brown rice and live in soviet style housing
it is very good that people have kept the economy humming for all these years
too bad all the cash going offshore has gotten in this current 'mess '

[horsewidower]

Re: Not just the big three.

General Motors (GM): Feb. sales -52.9% to 127,296 including 75% decline in fleet sales. Car sales +23%. Retail sales -43%. Notes "encouraging" upticks in volume and showroom traffic compared with January. Ford (F): Feb. sales -48.4% to 405,000 vs. -42% consensus. Inventories are 32% lower Y/Y vs. a 26% drop in sales. Toyota (TM): Feb. sales -37.3% to 109,583, in-line with consensus. Honda (HMC): Feb. sales -35.4% to 71,575. Car sales -33.1%. Acura sales -39%. TSX sales +4.1%. Nissan (NSANY): Feb. sales -37.1% to 54,249. Chrysler: Feb. sales -44% to 84,050 vehicles thanks to heavy sales incentives.

Carmakers ask for Japanese aid. While General Motors (GM) and Chrysler wait to see if the U.S. government will give them more money, foreign automakers are turning to Japan. Toyota's (TM) financial service unit said it has asked the Japanese government for a loan to shore up its capital. Honda (HMC) is likely to ask the government for a loan, though a spokeswoman said the amount of the loans and the timing of the request have yet to be determined. Mazda (MZDAF.PK) will likely follow suit. Finance Minister Kaoru Yosano said the government plans to lend $5B to the state-owned Japan Bank for International Cooperation so the bank can make dollar loans to cash-starved companies.

[SpiderGearsMan]

Re: Not just the big three.

somebody talk me down
GM is dead , long live GM ?

[horsewidower]

Re: Not just the big three.

Ford looks like they're working through their problems. At least we'll still have the big One.

Ford navigates UAW concessions. Ford (F) became the first U.S. automaker to win a new round of concessions from the United Auto Workers union, helping the automaker avoid federal aid. The UAW agreed to the elimination of annual bonuses and cost-of-living increases, as well as reductions in layoff benefits and in Ford's contributions to a retiree healthcare trust. To help persuade workers to take the deal, Executive Chairman Bill Ford and CEO Alan Mulally agreed to take 30% pay cuts. The concessions put Ford on par with foreign automakers, and could take some of the air out of the bankruptcy argument if General Motors (GM) and Chrysler can secure similar agreements with the UAW. Shares +5.7% premarket (7:00 ET).

[TC]

Re: Not just the big three.

Ford looks like they're working through their problems. At least we'll still have the big One.

Ford navigates UAW concessions. Ford (F) became the first U.S. automaker to win a new round of concessions from the United Auto Workers union, helping the automaker avoid federal aid. The UAW agreed to the elimination of annual bonuses and cost-of-living increases, as well as reductions in layoff benefits and in Ford's contributions to a retiree healthcare trust. To help persuade workers to take the deal, Executive Chairman Bill Ford and CEO Alan Mulally agreed to take 30% pay cuts. The concessions put Ford on par with foreign automakers, and could take some of the air out of the bankruptcy argument if General Motors (GM) and Chrysler can secure similar agreements with the UAW. Shares +5.7% premarket (7:00 ET).

I don't know about that, one of the oldest Ford dealers here in Phoenix, closed it doors. It was a Staple on Camelback Rd, been there for like 40+ years. I even knew the owners sons. It was a sad day when I drove by and it was closed.

[SuperBuickGuy]

Re: Not just the big three.

The problem is that people are hanging onto cars longer than they used to. For a long time people would trade in a car because it had a few problems instead of just fixing them. Now, they are fixing them and driving them longer. It's all about Americans are saving money now instead of spending. The past ten years we Americans have been charging everything and not saving at all. We are now doing what we should have ten years ago and, unfortunately, retailers and auto companies are paying the price of our frugalness.

It's a good problem to have. Remember when computers needed to be changed every couple years because of obsolescence? I have 5 year old computers that are still quite useable.... cars are the same way... it's like the manufacturers are victims of their own success and unlike what they did to Tucker; cannot simply buy their way out of this problem

[SpiderGearsMan]

Re: Not just the big three.

tucker ? whaat ?

[Schtauffer]

Re: Not just the big three.

Media just doing damage again, trying to sell papers. No worries.

Did you know that over 50% of foreclosures are in only 35 counties? Its generally in liberal areas where people are "living the life" (to make a very broad, general statement). My point is that some areas are harder hit than others; the areas hardest hit is typically where people have the highest level of debt.

http://www.ritholtz.com/blog/2009/01/08-foreclosure-heatmap/

Wanna do your part to help get us out of the mess we're in? Get out of debt ASAP. Even if you have to sell junk to do it.

Any industry built on consumer debt is doomed to failure. A culture cannot borrow its way to prosperity. The failure/trouble that the automakers are experiencing is a direct result of building their business on consumer's borrowed funds.