Our Point of View: It’s Really About Providing Consumers the Credit They Need

March 06, 2009

by Irv Miller

Toyota Financial Services Corp. (TFSC) has been in the headlines recently. It may be stating the obvious, but this doesn’t happen too often. As Toyota’s financial unit, TFSC’s business is to provide vehicle financing to customers and dealers. It is a critical role, but not one that has traditionally garnered much attention from the media.
But when reporters recently learned that TFSC has been in talks with the state-backed Japan Bank for International Cooperation, (JBIC) about a possible loan, suddenly, some newspapers and blogs around the world were screaming “Bailout!” It is an understandable initial reaction given how long we’ve been reading headlines of banks, auto manufacturers and other companies seeking government assistance to keep their doors open. However, Toyota, as we all know, is not at risk of shutting its doors.

So, let’s just set the record straight.

Unlike other companies that have sought government loans to keep their manufacturing and operations afloat, we are not seeking any funds for operational expenses. A role of the JBIC is to respond to financial disorder in the international economy. TFSC’s discussion with the JBIC is to explore additional sources of funding so that we can continue to provide consumers access to the credit they need.

Exploring funding options with the JBIC is not terribly unlike the many other endeavors to arrange funding that we undertake every day. We keep a diversified array of funding sources to ensure that we can do our part to keep credit available to car buyers and dealers at a reasonable cost. In fact, most analysts and industry observers have praised TFSC for considering the JBIC as a funding source.

Anything that can help ease the American and global credit crunch and get consumers back into the showrooms should be considered a positive move.

President & CEO
Toyota Financial Services

Displaying comments 1 - 1 of 1:

Corrine Marie Padilla said...
Just a compliment about a Prius Comm. I must say the Prius commercial is absolutely wonderful and so very unique. Although I understand it is intended to sell that beauty Prius; it occured to me it can represent a diverse and unified world. It really is a beautiful message and well done. I really do hope this is being sent in the correct area, if not I would greatly appreciate the person reading this forward this compliment to correct department. Please know I never take out time to do something like this, however it just really moved me and I wanted Toyota and the resonsible department to know what a beautiful job they did. Thank you for your time with this Corrine Padilla of Milford DE
6/2/09 at 12:00 AM

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