This should be interesting...

[slngsht]

I can see the case for bailout assistance for GM, Chrysler, and some of the banking giants. It goes against basic principles of free market, but these were / are companies with enormous impact on the economy at a particularly fragile period.

 

Here is an interesting one:

 

http://hellforleathermagazine.com/2010/12/harley%E2%80%99s-secret-2-3-billion-taxpayer-bailout/

 

What could possibly be the justification for saving HD by investing $2.3B in it? Clearly it's not a company that meets the "too big to fail" test, nor do they produce anything vital to our national security.

 

Amazing.

[Mondo]

Hard to believe they're a 3 billion dollar operation let alone borrowing that much. Wonder how much went overseas...

 

I've wondered lately if we'd been better off with a "trickle up" economy... where the priority for the country/economy is doing what's best for a strong middle class and our increase in wealth would benefit corporations (real demand/supply economics). If the last 20 years the wealth ratio was reversed and Wall St/CEO's profits were flat but the middle class enjoyed the increase in wealth what would our country look like.

[slomove]

That has been known for a while

http://www.motorcycle.com/news/harleydavidson-seeks-federal-bailout-87855.html

 

Not sure what to think of such practice, given the circumstances. I hope the government makes at least a buck on such guarantees (given the risk) but I don't know the details. If I read that right it was to keep the finance arm liquid so that more people could keep buying overpriced motorcycles they can not afford?

 

While I own a Yamaha myself I understand the value of HD as an American icon.

[Automoda]

Just like GM became a bank that sometimes built a car or two on the side, HD became a financing company... that built bikes to finance... which probably allowed them to charge more for them than they would have otherwise. But have you seen their current line-up? Bah. Boring.

 

My prediction is this: Harley will be purchased, just as a brand-name, within two years. Just like the once-king Schwinn was bought by Huffy. Perhaps by Tata from India or something. But they WILL be liquidated unless the government breaks the 400 year old rules of finance like they did for GM bond holders.

[ruckus racing]

so, has anyone noticed that the majority of prarts for the american iconic vehicles, like the f150 or the 1500, are made in canada and mexico... yet most us versions of "imports" are made almost entirely in house in the US

 

i'm just say'n

[slngsht]

  ruckus racing said:

so, has anyone noticed that the majority of prarts for the american iconic vehicles, like the f150 or the 1500, are made in canada and mexico... yet most us versions of "imports" are made almost entirely in house in the US

 

i'm just say'n

How many vehicles does Toyota sell in the states every year, compared to GM?

 

How many people does Toyota employ in the states every year, compared to GM?

[MHKflyer52]

I don't know for sure how many vehicles Toyota sold in the USA compared to GM but for 2010 but Toyota did sell in the USA 1,763,595 while GM was restructuring and the numbers for GM are not readily available to my knowledge for GM for the 2010 model year.

I do know that GM is much more diverse than Toyota and I do believe they employ a lot more people worldwide than Toyota dose and is one of the reasons that the Federal Government did what they did to keep GM from going under even if I do not think it was the correct thing to do especially the way that the FED went about doing it.

Only time will tell if it was the correct thing to do or if the Fed will have to do a bailout again like they did with Chrysler in the past.

[slngsht]

Toyota employs something around 10,000 people in North America. This does not include suppliers. Source http://www.hoovers.com/company/Toyota_Motor_North_America_Inc/rrrssxi-1.html

 

By comparison, The big three employ around 400,000 people in North America directly - again, not counting suppliers.

 

Just some food for thought in terms of domestic significance of Toyota vs the traditional domestic automakers.