Toyota's Unwinding Begins

Over the last few years we have put up quite a few posts about The Game - basically the dynamics under which companies, countries, individuals and, of course, banks would start to unwind. That process is exactly why we had financial markets collapse. We aren't even close to being at the end of this dynamic. In fact, we just witnessed GM's massive unwinding. It had to sell Saab, Saturn and Opel, shut down Pontiac and Oldsmobile, sell off GMAC, default on its debt and many of its future obligations to its employees.

Now, Toyota starts the process of unwinding. I think it's plausible to conclude Toyota's process will also be a painful one. Toyota's unwinding obviously won't be as painful as GM but closing the NUMMI plant in California is just the start.