Toyota Stock's Value Drops 6 Percent After Offer Of Zero Interest Financing

October 3, 2008 6:40 a.m. EST

Torrance, CA (AHN) - In an unusual move, Toyota Motor offered Thursday a zero-interest loan package to car buyers in a bid to boost auto sales. The offer came a day after the top Japanese vehicle manufacturer reported a 32.3 percent decrease in September sales.

Toyota's zero percent interest offer covers 11 models. The promotion, which runs until Nov. 3, excludes Toyota hybrids, the Yaris subcompact model, Scion and Lexus brands. Toyota used to shun offering hefty discounts just to boost sales.

Commenting on Toyota's move, Rebecca Lindland, consultant for Global Insight, told USA Today, "It's an indication that nobody is immune... This also eliminates the perception that 'Detroit should have known better' or 'This is all their fault.'"

But the move failed to improve Toyota's stocks as its shares fell Friday to a three-year low by 6 percent. As of 1:16 p.m., Toyota shares declined to $38.56 (4,050 yen), the lowest since July 2005.

The stocks of the two other major Japanese car makers also tumbled down, Honda Motor by 4.7 percent and Nissan Motor by 7.2 percent.