Japanese,Automakers,and,the,De car Japanese Automakers and the Detroit Bailout

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Toyota recently released statements that uphold the notion of abailout for the Big Three. Toyota is in support of any initiative thathelps the automotive industry. While this may seem unusually for acompetitor of the Big Three to hope for their survival, a Toyota dealer Cheyenne say it makes much more sense than it may initially seems.The dynamics of the auto industry are such that the fate of each areintertwined with each other, and as such as Toyota and Honda hope forthe survival of GM and Chrysler, even if it seems counter intuitive onthe surface. First, Asian automakers produce 3 million vehicles peryear at facilities within the U.S. If the Big Three fell intobankruptcy, the Asian automakers fear that their own production may bein jeopardy, as a Cleveland used Toyota notes Toyota accessories and parts suppliers may also be sucked into financial peril with a Big Three bankruptcy.With a great amount of overlap between those supplying the automakers, Birmingham Honda dealersthink it will be inevitable that the production will be disrupted due apotential bankruptcy.  It could take months before Toyota or anotherautomaker would be able to stabilize production and return operationsback to normal.Asian automakers have made steady gains in the North American marketin recent years. With manufacturing and dealer operations working intheir favor, one used car dealer bostonbelieves that Japanese automakers don’t want to mess with a good thingand see Detroit place strain on their manufacturing output.But manufacturing isn’t the only area where a Big Three bankruptcywill cause intense strain. Dealers in the U.S. often sell a combinationof domestic and overseas brands such as Spokane Chevy.Not only would inventory be affected, but dealers also believe that aBig Three failure would also eat away at the already low demand for newcars. November auto sales saw substantial declines in demand, causing a26-year low for auto sales.The U.S. remains the largest market for Toyota, Honda, and Nissan,which is why a stable market, with the Big Three alive and well, isessential to helping theses automakers maintain momentum. Already, weakoverall demand in the U.S. has forced Japanese automakers to lowertheir sales projections, which is why the automakers,  points out one Pittsburgh Honda dealer, are hoping for any measure that will bring stability to the industry and bring about consumer confidence.With weak sales and a poor economy, Toyota and other automakers aresimply not immune to sales and production issues. For example, thisweek Toyota cut its plans to open a new manufacturing facility inMississippi. The plant was scheduled to produce the next generationToyota Prius, which has previously been in high demand at Toyota Albuquerque and elsewhere across the country.It’s expected that the Japanese automakers would gain greater market share should a Detroit automaker fail. However, Nissan Tacomafears that having to sell inventory of the failed brand would depressthe prices of new cars throughout the inventory, at least in the shortterm.While the failure of a U.S. automaker could place strain on Japaneseautomakers, it could open doors for others. An Indian or Chineseautomaker, for example, could purchase assets of the failed company andbecome a low cost option for American consumers. India’s Tata andChina’s Geely are two such automakers that are gaining ground indeveloping markets, and may see such an opportunity to enter thelucrative U.S. market cost effectively. Regardless, Acura Auto Service Pittsburghand others in the auto industry feel that a ripple effect willeventually reach them from the fall out of a Big Three bankruptcy.Having upstart companies from overseas compete within the U.S. isnothing new. Korean automakers have slowly been carving out their ownmarket share for years, with more even greater moment in recent yearsthanks to attractive, high-value models says Hyundai Chicagodealers. But by piggybacking off of the assets, design, and dealernetwork of a U.S. automaker, an Indian or Chinese automaker would havethe opportunity to grab market share at a quicker pace than theirKorean rivals.To prevent upstarts maintain the inroads they’ve gained over decades of hard short, Japanese automaker such as Toyota are hoping for the survival of GM, Chrysler, and Ford. They also don’t want to see an upstart automaker make inroads in the wake of a domestic automaker’s failure.