Tuesday, January 19, 2010

Will Toyota and Honda Suffer from Japanese Economy in 2010?

In 2009, we have seen US automakers suffer due to the economic recession in the country. In fact, General Motors became bankrupt and financial support from American government saved it from becoming a thing of the past. Billions of dollars from Troubled Asset Relief Program saved the company last year and still, most of the shares are owned by the United States Treasury. Now, Japanese economy is suffering and it is now news flash that Japan Airlines has filed for bankruptcy. Consumer confidence in Japan is very low at the moment and there is really no good news for the economy of the country. There is little hope for Japanese economy to revive in 2010.
Will Toyota and Honda suffer the same way like GM or Chrysler suffered in USA in 2009? I don’t think so. The main reason that I feel that Toyota and Honda will not suffer even if Japanese economy suffers its worst condition in 2009 is the fact that two companies could diversify themselves globally in a good way.
Of course, Japan is an important market for them. However we have to remember that Japanese is a smaller market compared to that of USA. Secondly, Toyota is in good position in the America market.