Toyota is facing harsh scrutiny from the media and lawmakers - perhaps with justification. But there could be consequences for the U.S. economy.
And as Toyota (NYSE:TM) executives have endured two days of congressional hearings on the issues surrounding their potentially widespread defective products, the most aggressive questioners have been lawmakers from Michigan, home of the Big 3 automakers. A fact that led CNBC "Squawk Box" co-host Becky Quick to question if the federal government, with a huge stake in General Motors and Chrysler, are being a little unfair with Toyota on her Feb. 24 broadcast.
"We've heard from some congressmen, especially those later on in the show about the people and Congress people who are questioning Toyota at this point saying, they are doing this because the government has this big stake in GM?" Quick said. "To me, that seems a little crazy."
If you stand in the way of President Barack Obama's agenda, beware because there may be a litany of consequences that could result from your act - regardless if the obstacle is legitimate or not.
On June 8, Supreme Court Justice Ruth Bader Ginsburg issued a stay to review an appeal by a trio of Indiana pension and construction funds that own a part of Chrysler's secured debt. They claimed the administration's handling of the deal that would have sold Chrysler's assets to Italian automaker Fiat (BIT:F) arbitrarily threw 150 years of bankruptcy law out without process of law.
We were told all throughout the 2008 presidential campaign and on up into the debate over the stimulus that the way out of the current economic malaise is through growing a green economy. "NBC Nightly News" is still on message.
On the May 6 broadcast of "Nightly News," anchor Brian Williams explained that Ford Motor Company (NYSE:F) didn't accept federal bailout money, but all the while it has been producing green cars - as if the two were related.
"We have a report tonight on the car industry," Williams said. "The Ford Motor Company has its own challenges ahead, but they are rightfully proud of being the only one of the Detroit big three not to accept taxpayer bailout money. Ford announced today it's retooling a plant that made big gas guzzlers in order to produce smaller, greener cars. And this comes at a time that other automakers are cutting production and thousands of jobs."