Car industry going bust?

Toyota warns of maiden operating loss

Plunging sales and surging yen hit sales

By Jonathan Soble in Nagoya

December 22 2008 09:02

Toyota Motor warned on Monday that it would post an operating loss for the first time in its history as a result of plunging sales and a surge in the value of the yen.

The Japanese automaker, which had earned a reputation for turning a profit even in hard times, said it was freezing expansion plans, suspending executive bonuses and reviewing its..........read more

Tata agrees to cash boost for Jaguar

Agrees to invest tens of millions to prevent immediate cash flow crisis

By Jean Eaglesham, Chief Political Correspondent

December 21 2008 23:27

Tata, the Indian owner of Jaguar Land Rover, has agreed to inject “tens of millions” of pounds into the British car company to prevent an immediate cash flow crisis, while the government continues to consider the case for a taxpayer-funded.............read more

Wall Street Journal: White House Announces Rescue Plan for Automakers

The White House announced a $17.4 billion rescue package for the troubled

Detroit auto makers that allows them to avoid bankruptcy and leaves many

of the big decisions for the incoming Obama administration. Speaking from

the White House, President George W. Bush said the administration decided

against forcing a bankruptcy to compel cost-cutting, in order to avoid the

risk that consumers would desert one or more of the companies and touch

off an industry collapse, deepening the current economic downturn. "In the

midst of a financial crisis...allowing the U.S. auto industry to collapse is not

a responsible course of action," Mr. Bush said. "Under ordinary economic

circumstances, I would say 'this is the price that failed companies must

pay' and I would not favor intervening to prevent them from going out of

business," the president said. "But these are not ordinary circumstances."