Toyota U.S. Sales Plunge Record 40%

Toyota Motor Corp., facing the first loss in 59 years, suffered a record drop in U.S. sales last month as the recession in the world’s largest auto market cut industry wide demand to the lowest since December 1981. Asia-based carmakers’ sales declined a combined 34 percent from a year earlier, led by a 40 percent plunge for Toyota, the world’s largest automaker.

Toyota has turned to Japan’s government to borrow money for U.S. car loans as private investors demand as much as 50 percent more in interest for the company’s debt. Plunging sales and a stronger yen forced the Toyota City, Japan-based carmaker to triple its operating loss estimate for this year within a two- month period.

“They are in full-blown crisis right now," said John Casesa, a partner at consulting firm Casesa Shapiro Group LLC in New York. “They’re tearing up their business plan."

Honda Motor Co., Japan’s second-largest carmaker, had a 38 percent drop and Nissan Motor Co.’s sales fell 37 percent. General Motors Corp. said sales plummeted 53 percent, while Ford Motor Co.’s fell 48 percent and Chrysler LLC reported a 44 percent decline. GM and Chrysler are surviving on $17.4 billion in U.S. government loans.