Automakers around the world are exploring an array of options to keep operations going during the coronavirus (COVID-19) pandemic. Governments are observing lockdowns in a bid to prevent the deadly virus from spreading, which means several automakers around the world have had to halt productions.
Toyota is now seeking a 1 trillion yen ($9 billion) line of credit to ensure it has ample funding if necessary with the coronavirus pandemic intensifying across the world. Although Toyota, which is Japan’s biggest automaker, has the strongest credit profile among the country’s car manufacturers, its cost of credit is going up.
Toyota has announced to halt all of its plants in Europe, while it is estimated that more than 80% of its production facilities around the world are sitting idle due to COVID-19 lockdowns. Reportedly the coronavirus outbreak may shave off 170 billion yen ($1.5 billion) from the profits of Japan’s top 5 automakers.
The rush to borrow money comes as much of the world waits in various states of quarantines as governments race to slow the spread of the novel coronavirus. The pandemic is having an intense effect on carmakers and automotive-related events around the globe.