Toyota will NOT benefit from auto bailout failure

If you are a business owner and you have competitors for a product that is in demand, generally the misery of the competition would make you delight. However, when it's in a situation that the product is not so much in demand and you count on shared parts of the business to succeed yourself, that misery can be equally as damaging. Such is the quandary with Toyota and Honda, who despite having troubles of their own to deal with and get their car sales back on track, are eagerly awaiting to see what will be done in lieu of the auto bailout failure.

If General Motors, Chrysler, or Ford were to go under and basically not be either taken over on a governmental level or merged with another entity, the eastern auto makers would be just as at risk for their own companies to suffer dire consequences; for one, competition in the global car economy is a good thing, as the consumer needs change from year to year to decade to decade, and thus it spawns the need for niches as well as continual buying cycles which all companies can benefit from. Likewise, the counter fallout of a bankruptcy means thousands of lost jobs in the supplier frame of reference as well, and Toyota and Honda share much of these same suppliers, so they would be equally devastated should things not right themselves.

Will they reach into their own pockets to assist? Unfortunately, they too have suffered losses on the projected amounts of cars that they thought would be sold in 2008. While they aren't even near the situation that the American auto makers are at, they wouldn't be able to fork out anything, and plus that probably wouldn't be looked at too well by a government who just turned their nose up at their own country's companies.

But you can be sure that as things go along they will weigh in as much as possible in support of getting the Big Three back on their feet.

( Add your comments )

Recent Entries:
· 2011 Ford Explorer
· Honda Announces Mileage Marathon Winner
· Cadillac Converj is GM's next electric car

[ READER COMMENTS ]

Toyota will NOT benefit from auto bailout failure

Add your comments...

We kindly ask that you keep your comments relevant to this blog entry. Abusive or inappropriate comments or comments that are specifically promotional in nature may be removed.