Toyota backs the Big 3 bailout

[White trash wagon]

NEW YORK (CNNMoney.com) -- Detroit's Big Three aren't the only automotive companies that want to see the government step in with some much needed financial help.

Overseas automakers, most notably Toyota Motor, all endorse some form of federal aid to keep General Motors (GM, Fortune 500), Chrysler LLC and possibly Ford Motor (F, Fortune 500) out of bankruptcy.

The Senate killed an effort to get the automakers a stopgap loan last week and now the Bush administration has said it is looking at providing the automakers help from the $700 billion approved to bailout banks and Wall Street firms.

"We support measures to help the industry," said Toyota Motor (TM) spokeswoman Mira Sleilati. "We just want a strong, competitive healthy industry."

http://money.cnn.com/2008/12/15/news/companies/overseas_automakers/index.htm?postversion=2008121517

[mikeb]

They all use the same suppliers. If one goes they all go. It's self preservation.

[grape]

denso electronics prices would go through the roof if the big 3 fail................and you're competitively priced japanese cars of today would suffer the brunt in price increases tomorrow.

[VETTKLR]

denso electronics prices would go through the roof if the big 3 fail................and you're competitively priced japanese cars of today would suffer the brunt in price increases tomorrow.


I don't think so. If the Big 3 were to fall off the face of the planet, there would be a massive denso electronic surplus. Other car companies should be able to stock up and save a fortune. Supply/Demand.

Why does everybody seem to think that if the Big 3 (which is bullshit...Ford can make it out of this all by themselves) files for Chapter 11, it's the end of them all? All they have to do is restructure, get their shit together and get back to making cars!

From what I've seen, Dodge is screwed...again. GM is crying like it's about to be the end of 2-3 million jobs and Ford is just along for the ride. IMO, if Ford stock is plummeting, pick up every share you can get your hands on, because when this is over, they should come out stronger than ever.

[Slowhand]

From what I've seen, Dodge is screwed...again.

You do realize that Dodge isn't the parent company there, right?

[VETTKLR]

yes...I wrote Mopar out at first :D

....and then Chevy for GM...but you get where I comin' from, right?

[White trash wagon]

I don't think so. If the Big 3 were to fall off the face of the planet, there would be a massive denso electronic surplus. Other car companies should be able to stock up and save a fortune. Supply/Demand.

For about 3 months you would be right, prices of Denso parts that interchange between all cars would bottom out. But Denso would immediately cut production & layoff people due to lower demand, and 3 months later thier prices would go right back up. Supply/Demand

[VETTKLR]

Yessir. and all would be back to business for the surviving car companies and their suppliers with their smaller businesses that require less money to run.

Sounds like we're all on the same page here.

[VETTKLR]

This is all purely theoretical, by the way. Ford and The General will be here for a verrrry long time, no matter what happens in the next few months.

I couldn't care less about that other car company. :p

[White trash wagon]

Yessir. and all would be back to business for the surviving car companies and their suppliers with their smaller businesses that require less money to run.

Sounds like we're all on the same page here.

Not exactly, smaller companies as a whole do take less money to run. But due loss of economies of scale, unit prices of components will rise, thus making cars more expensive. Plus if the amount of competition is cut in half (by the loss of ther big 3), what's to stop Toyota from charging $30K for a Corolla?

Why do you think Walmart sells for less? Competition and economies of scale.

[VETTKLR]

Consumers are what's stopping a $30K Corolla. Would you buy one? I sure as hell wouldn't LOL


Well...intelligent consumers. :D


And that puts us right back to what got the country in this mess, huh!

[grape]

I don't think so. If the Big 3 were to fall off the face of the planet, there would be a massive denso electronic surplus. Other car companies should be able to stock up and save a fortune. Supply/Demand.

.

if you were denso who supplies components to gm, ford and chrysler, would you continue to produce your products at the same rate letting them stockpile and loose value............probably not. Yet how would you recover your loss of total sales, besides upping your component cost to other manufacturers. :confused:

[VETTKLR]

I'd have to cut spending and/or production to maintain a profitable business.

I understand what you're saying, but if Denso (or anyone else) cranked up their prices to keep making the same profits, what's stopping Denso from moving to China or anyone else from stepping in with a cheaper product?

I would not be the next weak link in the chain to keep producing/spending the same amount of product and go beg for a handout from congress when I started losing profit.