Toyota Forecasts Its First Operating Loss in 71 Years
Amazingly enough, it is not just troubles found at the “Big Three” that may have an effect at motorsports most visible pursuit – NASCAR!
Nearly 50 teams rely on millions of dollars in supplies and sponsorship from General Motors, Ford, and Chrysler [and now even newcomer, Toyota]. It's a decades old relationship so vital that Brian France, the chief executive officer of NASCAR, wrote congressional leaders in support of the bailout.
"NASCAR is in big-time trouble," said Norris McDonald, longtime motor sports writer for the Toronto Star.
McDonald says more than 1000 team workers have already been laid off since the end of the NASCAR season, and he predicts that if the auto industry isn't rescued, the circuit could lose up to a third of its teams.
(more information on NASCAR Troubles HERE)
ht: Rob Walker
Toyota Motor Corp., the world’s second-largest automaker, forecast its first operating loss in 71 years on plummeting demand, prompting Moody’s Investors Service to consider downgrading the company’s top-rated credit.
The carmaker will post a 150 billion yen ($1.7 billion) loss in the year through March, it said in a statement today, scrapping a previous forecast of a 600 billion yen profit.
“The environment we’re in is extremely tough,” President Katsuaki Watanabe told reporters today in Nagoya. “We’re facing an unprecedented emergency situation. Unfortunately, we can’t see the bottom.”
Moody’s is reviewing the carmaker’s “Aaa” rating on $19 billion of debt, possibly boosting the company’s borrowing costs amid tightening credit markets and the worst U.S. auto sales in 26 years. Watanabe has cut contract jobs, production and executive pay including board-members’ bonuses this fiscal year in a bid to offset slumping demand and a strong yen.