As we all know that Toyota is the world’s largest auto motor company but at the same time it is also the world’s most indebted company with an estimated debt of $186 billion. Which can be more debt than any corporation in the world.
A recent report by stockapps.com shows that Toyota has not only overtaken Volkswagen Group in terms of debt but has also become the world’s most indebted automobile company with a total debt of Rs. There is a debt of 186 billion dollars.
But such a huge debt is not a big deal for such a big company and especially at this time when all the motor companies have invested in their upcoming electrification. So this is normal for large companies like Lone Inn.
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But these debts become more harmful when the debts exceed the assets. And such a situation puts a company in a huge financial crisis like bankruptcy, due to which it has to face a financial crisis and its profits start decreasing.
But this does not mean that Toyota is in trouble, it is also true that more debt harms the company. But Toyota still has total assets of $226 billion, according to its 2021-2022 financial reports. And yet Toyota is still posting profits.
As Toyota is making more profit of $600 million than its previous year which is good news for it.
With all this, Toyota and the entire motor industry, in general, are facing a serious supply problem. Which Toyota needs to fix internally. Like the voltage cable of the Toyota RAV4 or again the bz4X recall which prevents the manufacturers from marketing it in a timely manner.
Volkswagen is second World’s indebted Company
But in terms of debt, Toyota is not the only one that has more debt, along with it, Volkswagen and Mercedes Benz also have more debt and this company is also following Toyota in terms of debt. Although the financial condition of Mercedes is looking somewhat right the condition of Volkswagen is also looking bad.
Because Volkswagen is the second largest motor company in the world after Toyota and with this, it has the same debt as Toyota, and with this, it is the second most indebted automobile company in the world with a total debt of $ 185 billion.
Volkswagen’s losses stem from two places: a long-term debt due to the diesel engine scandal, but also from massive investments in electrification. The second part of this debt will come from the assets of the shareholders.
However, unlike Toyota, which still appears to be badly suited for electrification, Volkswagen is in a better position, thanks to its family of id vehicles, which are already posting dazzling sales figures despite a significant inventory shortage. doing. Although Volkswagen is in the red, it has made an investment that could pay off.
Juan Vasquez, or “juantio,” is an Automotive Engineer from Brooklyn with over seven years at Standard Motor Products. He’s also the Chief Editor at SUV Bazar. An active member of the SMP Softball team, Juan is affiliated with giants like Siemens and Google. He’s currently seeking new opportunities in automation engineering.