TOKYO: Toyota, the world's biggest auto maker, is forecasting that its global production output will fall by 12% in the next fiscal year, the lowest level in seven years, having previously predicted it will post its first net loss in 59 years in March.

Alongside cutting its scheduled production totals from 7.1 million this year to 6.2 million for the year starting in April, the company predicts it will post an operating loss for the March year-end period.

It is also said to have requested $2 billion (£1.4bn; €1.6bn) in loans from the government-supported Japan Bank for International Co-operation to provide funding for its corporate finance arm, Toyota Financial Services.

The main issue motivating the move is thought to be the difficulties motor companies face in securing credit in the US, where total auto sales declined by over a third in January, having fallen by a similar level in Japan, and just over a quarter in Europe.

Data sourced from Wall Street Journal; additional content by WARC staff