Friday, April 3, 2009

Toyota Borrows From Japan-Owned Bank to Finance U.S. Car Sales



“Toyota needed the loan as it’s not making money in the U.S.,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo, which manages $28 billion. “This will make it easier for other carmakers to ask for government aid.”

The Japanese government is lending money to Toyota, which is losing money (no one in Japan is asking, is it "viable?"), so that the automaker can continue selling cars in the United States. Smart move: Toyota will grab market share from GM and Chyrsler as the U.S. Government forces them into bankruptcy.

All from an Administration that is purportedly for the working class and saving American jobs. Unreal!!

Our belief system is killing us.

Read article here.

4 comments:

googleheim said...

any shrinking market will experience price inflation later as there will not be enough competition and Toyota will have it easy.

The Toyota loss from last year was pure B.S. so that the Japanese could devalue the YEN due to it's surge in last Fall's flight to quality, more over - an exodus.

They successfully devalued the YEN and exports are up.

They are master magicians and we are heading towards another 80's where they rule the car market.

Where's Richie Cunningham and his movie GUNG HO II ?

googleheim said...

Is that protectionism ?

If GM asked that Japanese bank to provide loans, then the Japanes bank would say no.

Therefore, this is in CLEAR violatio of the WTO and should be rejected by all real Americans.

This is BUY JAPANESE or more over -BUY JAPANESE because you don't have a choice.

Protectionism

Warren Mosler said...

not to mention the BOJ has unlimited Fed dollar lines to facilitate this!

www.moslereconomics.com
www.mosler2012.com

Mike Norman said...

Warren,

Yes, just as the French gov't had when it gave nearly $11 billion to Peugeot-Citroen and Renault.

And when demand picks up in the U.S. car buyers will have to put their names on waiting lists to get vehicles (at escalating prices) thanks to the government's steps to make GM and Chrysler "viable," which was nothing more than shrinking our domestic capacity to produce.

Bottom line is, Americans will be driving older and less technologically advanced vehicles compared with motorists in the rest of the world. That's the defiinition of a declining standard of living.