Bus 245-03 Assignment 2

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BUS 245-03 Assignment 1 Fall 2013 Finance/Business in the news Elizabeth Johnson Bailout of the Auto Industry-Toyota There have been so many incidents of large corporations needing bailouts within the auto industry and Toyota is just one of the many that have needed government assistance because of financial troubles. Some people may wonder if it was or is ethically right to do something like this because of all the controversy behind it like the CEO's and the higher ups misusing the money the government gave them to bailout and help their companies. The government can not predict that so in their own way it is justified to keep the economy up and running. With the economic troubles in the US still at a high, the auto industry has taken…show more content…
financial crisis hit last year.(Associated Press, 2009).” Toyota had recently lost $3.5 billion even though they had the recent growth and financial stability. Losing this amount of money in such a short time period has scared their company and has been the first major downfall since the company started up in 1950 and having a record breaking year previously with 1.7 billion dollars in profits. With a solid growth record for the past 60 years it looked as though this would be very unlikely to happen to Toyota. This illustrates that even a multi-national company such as Toyota is not immune from financial mistakes, even with a strong past performance and competitive product line up. “Toyota is still faring better than General Motors and Chrysler, which together have received $17.4 billion in emergency loans from the U.S. government, and asked for an additional $21.6 billion in aid last month.(Associated Press, 2009)” All of the other companies like GM, and Honda are still in a worse spot financially than Toyota. Toyota is still performing well against its competition and even after the bailout Toyota still has a well respected brand that they are successfully

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