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
Honda executive Takanobu Ito speaks at a press conference at the company's head office in Tokyo, Feb. 23, 2009.    (AP Photo)
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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.”