Toyota plans to issue credit cards

Friday, April 29, 2005 | 9:21 a.m.

SUN STAFF AND WIRE REPORTS

Toyota Motor Corp., the world's second-largest automaker, announced it will issue credit cards in the United States under its Lexus brand to expand financial services and help attract and keep luxury-vehicle customers.

The Lexus Pursuits Visa cards will debut in June through Henderson-based Toyota Financial Services Bank.

The management of the card operations will be handled in partnership with the Henderson bank and Lexus' U.S. headquarters in Torrance, Calif.

The local bank was formed last year, and the credit card marks the company's first consumer product. Card users will earn discounts on Lexus vehicles, parts and service. The automaker later may add a credit card aimed at Toyota-brand customers, a Toyota spokesman said.

Toyota, the first Asian automaker to set up a U.S. bank, has sought to increase financial-services earnings in the United States, its most profitable market.

The automaker received government approval to incorporate its banking arm in February 2004. The financial unit so far has provided banking services only to Toyota and Lexus dealers rather than to retail customers. It's dealer product has been offered initially in California and Nevada, but it is expected to be expanded to additional markets by the end of the year.

Toyota Financial Services Bank currently has 15 employees in Henderson.