Toyota seeks bailout from Japanese government.

[Dinner]

It seems even the 70% drop in global automotive sales has brought even the industries toughest players to their knees. Or at least it's hurt them bad enough that Toyota is now asking for a bailout from the Japanese government.

http://rumors.automobilemag.com/6455654/news/toyota-financial-services-unit-applies-for-government-backed-loans/index.html

It's much smaller then what GM and Chrysler have sought but this maybe just the start. Only time will tell.

[Arrian]

Yeah, I saw that too. Even Toyota isn't immune.

-Arrian

[Kidlicious]

It seems even the 70% drop in global automotive sales has brought even the industries toughest players to their knees. Or at least it's hurt them bad enough that Toyota is now asking for a bailout from the Japanese government.

http://rumors.automobilemag.com/6455654/news/toyota-financial-services-unit-applies-for-government-backed-loans/index.html

It's much smaller then what GM and Chrysler have sought but this maybe just the start. Only time will tell.

I'm sure the Japanese government will be glad to subsidize them.

[Imran Siddiqui]

Hey, if the US government is helping out American automakers, it puts other companies at a disadvantage not to get free money from their governments .

[Q Classic]

Sucks that Saab was founded in a Socialist country that won't give it bailout money.

On the other hand, Japan's bailout makes sense, since they've always had a government-corporate axis in strategic industries.

Honda and Mazda, too: http://www.bloomberg.com/apps/news?p...t0&refer=japan

[Zkribbler]

Hey, if the US government is helping out American automakers, it puts other companies at a disadvantage not to get free money from their governments .

Loans are not free money -- although one of the reason for our current mess is that too many people believed it was.

[The Mad Monk]

If they want another lost decade, that's their business.

[Kidlicious]

Loans are not free money -- although one of the reason for our current mess is that too many people believed it was.

It's acceptable to use the word "free" when refering to subsidies.

[Dinner]

If they want another lost decade, that's their business.

Like you have any idea what caused Japan's lost decade. Here's a hint, it was an insolvent banking system which the Japanese authorities didn't even try to start cleaning up until 7 years after their real estate bubble burst. The lesson to learn from Japan is don't sit on your hands and the sooner you clean up the banking sector the sooner the economy starts moving again.

[Saras]

Sucks that Saab was founded in a Socialist country that won't give it bailout money.

sucks that saabs are also fugly mothers...

[Q Classic]

sucks that saabs are also fugly mothers...

You shouldn't talk about your own mother that way, Saras.

[Dauphin]

Can someone please explain why auto-makers should be subsidised, as opposed to why they are subsidised?

[DaShi]

If they want another lost decade, that's their business.

What does this have to do with the lost decade? Did Rush say this?

[OzzyKP]

Like you have any idea what caused Japan's lost decade. Here's a hint, it was an insolvent banking system which the Japanese authorities didn't even try to start cleaning up until 7 years after their real estate bubble burst. The lesson to learn from Japan is don't sit on your hands and the sooner you clean up the banking sector the sooner the economy starts moving again.

To be accurate, we know that Japan's sitting on their hands didn't work, but that doesn't necessarily mean bailouts will work.

[DanS]

I don't think that I would call this a bailout. More like a subsidy, much like GMAC is getting, rather than a bailout like GM is getting.

Honda, for instance, is expected to be profitable this year.