According to a Reuters report, the Japanese government and several of the country's largest manufacturers are joining forces to rescue troubled electronics manufacturer Renesas Electronics. Toyota, Nissan, Honda, Panasonic, Canon and Denso are set to contribute a combined $637.9 million to a $2.55 billion deal that will see the group gain control of the company. Robert Bosch GmbH is also considering investing in the electronics manufacturer.

Why are so many varied corporations interested in Renesas' future? The company is the world's leading supplier of microcontroller chips. Even so, the strengthening yen and heavy competition from South Korea's Samsung Electronics Company has seen Renesas suffer through five years of financial losses. As a result, the company has laid off 12 percent of its workers and currently has plans to either sell or consolidate more than half of its domestic manufacturing facilities.


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  • 25 Comments
      Jason
      • 2 Years Ago
      What's this about?! A government bailout of an industrial company? Because it is in the best interest of the whole country?! How could they?! It's just inconcevable... other countries don't do this? Just us wacky Americans, right? And even then it's debatable whether it's the right thing to do? Right? Just let the economy handle it, right? Maybe all you short-sighted people who think the US government was on its ear for doing the same thing can learn a thing or two. And yes, I see that there is support from the car makers. But that's because they can, in 2012. Point is, the idea of the country protecting itself and its best interests is not crazy. It's actually smart.
        • 2 Years Ago
        @Jason
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        • 2 Years Ago
        @Jason
        [blocked]
          Anthony McAdams
          • 2 Years Ago
          ditto here in the states, maybe we need some kind of "anglo" trade block? just a thought...
        • 2 Years Ago
        @Jason
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      • 2 Years Ago
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        GR
        • 2 Years Ago
        Rick, you just don't get it . You are like talking to a brick wall. I even wrote an elaborate explanation of the Japanese domestic market for cars in response to your previous comments. luigi.tony actually understands perfectly the reality. He is also absolutely correct in saying the majority of those Toyotas, Hondas, Nissans, etc. sold in the US were built in the US. So, are the Americans or Europeans opening up factories in Japan and providing jobs there? Are they even creating cars suitable for Japan (as luigi.tony stated, 600cc Kei-cars)? Wait, do they even make a product that can beat Japanese quality for the price (value)!? Look, you can hate on the Japs and their cars all you want. You don't have to drive one. Many people are seeking to get the best for their money. The Japanese have delivered that for many people across the globe.
        luigi.tony
        • 2 Years Ago
        Also Rick, Most off of those Japanese cars you listed were built in the USA, and sold in the USA. Perhaps GM and Ford should have used their holdings of Mazda, Suzuki, Isuzu, Subaru...to better advantage in Japan.
        Go Ford Mustang
        • 2 Years Ago
        Here is the real top 10 list for imported behicles by brand for Japan in September, 2012. 1. VW: 5051 2. Nissan: 2810 3. Mercedes: 5299 4. BMW: 5030 5. Audi: 2917 6. Toyota: 1705 7. BMW Mini: 1556 8. Volvo: 1691 9. Mitsubishi: 4484 10. Fiat: 666
          GR
          • 2 Years Ago
          @Go Ford Mustang
          This does not make sense. The numbers are not in numerical rank reflecting sales numbers and Nissan, Toyota, and Mitsubishi are Japanese brands.
      mikoprivat
      • 2 Years Ago
      the japanese do it (always did, starting with the dumping of their inferior quality rikshas called toyota and honda and datsun on the world 9especially american market), the germans do it and the french are experts in doing it...without the french government ghoshn would pick soya beans in brazil or be a waiter in Beirut
      Skicat
      • 2 Years Ago
      No "free-market remedies" here. Cue the wingnuts.
      • 2 Years Ago
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        GR
        • 2 Years Ago
        You mean Mexican-made American cars?
      Pandabear
      • 2 Years Ago
      Renesas is primarily a specialty chip company and it is likely that if they go, the auto makers won't be able to find substitute for their chips as easily as those that make chips for PCs and phones. Japanese have been going down hill since the microchip revolutions and they are losing the high end to US and Korea, and the low end to Taiwan. I'd not be surprised in the future these chip will be contract manufactured in Taiwan and Singapore (and maybe Korea, but they are usually not in that business) instead of staying in Japan.
        imdonniedarko
        • 2 Years Ago
        @Pandabear
        Losing the high end to US and Korea? Japan is one of the world leaders in high-end manufacturing along with the US. They have a monopoly on manufacturing high-end components that go into almost every kind of electronics (not the RAM and other parts this article talks about, but stuff even higher up the chain). South Korea and Taiwan are taking bites out of low-end manufacturing (such as RAM and CPU) because its getting more and more prohibitive to produce those in Japan (because of the difference in wages). Ultra high-end manufacturing is staying in Japan (and to a lesser extend the US) largely because they are the only ones who has the capability to manufacture them and because of the high price of these items, the wage to manufacture them in Japan is a non-issue.
      richsra
      • 2 Years Ago
      Japanese electronics are taking a beating. In the 1980s they dominated the world. Now they are marginal players in computers, Samsung is worth more than Sony, Sharp and Panasonic combined, their last memory chip company (Elpida--which as Renesas had been rescued by the Japanese government) went bankrupt and is being absorbed by Micron (an American co.). Their steel companies are consolidating and merging to survive. Their ship building industry is losing to China at the low end and Korea in high-end ship types. Toyota and Honda are losing market share in the developing world to Hyundai and Kia. They can't moan about the Yen but so did a strong dollar affect American companies. The difference that our companies are dynamic and reinvent themselves while the Japanese conglomerates have become slow to act and fearful of doing what is needed: moving massive amount of ,manufacturing from Japan to low-cost Asian nations while investing more in R&D and marketing. Mazda still wants to manufacture the bulk of their vehicles in Japan. Let's see where it takes them. Mitsubishi and Suzuki are dying in the U.S. market. Nissan was bailed out by Renault. Lexus and Infiniti are eating the dust of a resurgent BMW, Mercedes and Audi. Toyota is slowly absorbing the rest of Japan motor industry (Subaru, Daihatsu and Hino). Mitsubishi and Mazda may need to find foreign partners (hello Chinese companies....). Isuzu has stopped making cars and concentrates on trucks (a smart decision). Soon there will only be the Big 3, Toyota, Honda, Nissan and a Suzuki which relies mainly on India. Japan Inc. needs a major restructuring the way that American companies did in the 80s and early 90s. Given their aging and declining population they do not have much time.
      • 2 Years Ago
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