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Honda Hops on Bailout Bandwagon

Japanese automaker to seek government loans to pay for customer loans

By Gabriel Winant,  Newser User

Posted Mar 4, 2009 9:46 AM CST
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(Newser) – With American credit markets dried up, Honda is seeking money from the Japanese government to help finance auto loans in the US, reports the Wall Street Journal. The Japanese government is planning to offer $5 billion through a semi-governmental organization, and Toyota is planning to seek funds as well.

Japan’s auto companies aren’t in anything resembling the dire straits facing American giants. They are, however, looking at losses or drastically decreased profits this year. “US carmakers such as GM are seeking government fund aid, as they could run out of operating funds anytime,” one analyst says. “But the aim of using government loans [for Honda and Toyota] would be strategic moves.”

Honda executive Takanobu Ito speaks at a press conference at the company's head office in Tokyo, Feb. 23, 2009.
Honda executive Takanobu Ito speaks at a press conference at the company's head office in Tokyo, Feb. 23, 2009.   (AP Photo)
Honda cars are seen parked at docks in Southampton, England, Jan. 27, 2009.
Honda cars are seen parked at docks in Southampton, England, Jan. 27, 2009.   (AP Photo)
Though demand is low, it is the frozen US credit markets that has Honda and Toyota seeking help from the Japanese government.
Though demand is low, it is the frozen US credit markets that has Honda and Toyota seeking help from the Japanese government.   (AP Photo)
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U.S. car makers such as GM are seeking government fund aid as they could run out of operating funds anytime. But the aim of using government loans [for Honda and Toyota] would be strategic moves. - Yasuaki Iwamoto, analyst at Okasan Securities

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COMMENTS
Showing 2 of 2 comments
BackAgain
Mar 4, 2009 12:43 AM CST
http://www.snopes.com/politics/soapbox/knox.asp thought this was interesting.
Doctor-Zaius
Mar 3, 2009 11:35 PM CST
Obviously they are a poorly run company and should be allowed to fail.

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Money • US • World

 
Japan • Toyota • General Motors • Honda • credit crisis • auto industry • US automakers • bailout

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