Toyota wants GM and Chrysler to survive

Believe it or not, Japan wants Detroit to survive. Overseas automakers, mainly Toyota Motor Co., are endorsing some form of federal loans to keep GM and Chrysler out of a possible bankruptcy. Basically, a failure of one or more automakers would cause other automakers production problems, crush the already weak demand and open the door to low-cost competitors (hint-hint – those cheap Chinese knockoffs).

“We support measures to help the industry,” said Toyota spokeswoman Mira Sleilati. “We just want a strong, competitive healthy industry.”

According to CNNMoney, if one of the Big 3 goes under, that would most likely lead to a widespread bankruptcy of auto parts suppliers. That in turn would hurt the production of overseas automakers who produce more than 3 million vehicles in the U.S.

Demand for cars hit a 26-year low in November. Failure of any of the Detroit’s Big 3 automakers would further crush demand with an already aching U.S. economy.

Last but not least, overseas automakers fear the Chinese and Indian automakers entering the markets to buy up the assets of the failed automakers to create low-cost competitors in the U.S.

Sounds scary enough to us.

Source: CNNMoney