Few people can think of buying a car in the time of economic recession. Of course, in USA and Japan, car is not considered to be a luxury item like many poor countries in Asia and Africa. Still, when you are in the economic recession spending money for this commodity is perhaps does not come to your mind easily. Yes, this is the thing that is happening now and Toyota is suffering a lot because it is now the largest auto maker in the world.
Auto sales stats of April 2009 has now come to the media in both USA and Japan. In USA, Toyota suffered a major setback. The reason is still not clear but it is clear that Ford is catching up with the Japanese company. In America, at this moment, the main problem is that most people are worried about their future. Nearly 6 million people have lost job in the last few months due to recession. Not only that because of the credit crunch fallout and banking sector problem, now it is becoming more difficult to get car loans easily like the past. The banks and financial institutions are struggling themselves. So, they have to act cautiously about giving new auto loan. The only thing that is perhaps good for the time being is that the price of oil is much cheaper compared to a year ago.
In Japan, almost a similar picture exists. Many people have lost jobs and consumer confidence is low. So, fewer people are interested to buy a car here. Toyota sales plummeted in April 2009 and many workers in the company are perhaps worried for their future.
Some people thought that the stimulus packages offered by US government, Japan government and G20 countries would boost the global economy. However, the stimulus packages surely have not increased consumer confidence.
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