Toyota announced today it is forecasting an annual loss this year for the first time in seven decades. The surprise news from the world’s most successful automobile manufacturer illustrates just how deeply the financial crisis and credit crunch is affecting the car market the world over. While Toyota will not be asking the Japanese government, nor any other, for a bailout, it has announced that it will scale back production by as much as 10 percent this coming year in order to stay at pace with the declining demand for cars worldwide.

The credit crunch has essentially made it impossible for even the most popular carmaker on Earth to sustain its production volume. Over the past 3 months obtaining an automobile loan has simply become impossible for a large percentage of consumers who normally would be purchasing now amid record low interest rates. Other potential buyers who can get loans are justifiably wary of big ticket purchases in such uncertain times.

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LINKS:

NY Times: Even Toyota Will Lose Money This Year as Car Sales Slow

MarketWatch: Toyota seen posting first ever operating loss

CNNMoney: Toyota forecasts loss as sales slide