Three of Japan's major automakers, disclosing their financial results in late-September, reportedly plunged into net loss. This marks a significant downturn in what was a healthy balance sheet just half a year prior. While the exact figures and specific companies remain undisclosed, the financial trouble comes amidst increasing operational costs and a global slowdown in the vehicle market, further exacerbated by the ongoing pandemic.

People in Japan give priority to the performance of large corporations as they are major employers and contribute significantly to the economy. The auto industry, dominated by giants such as Toyota, Honda, and Nissan, is particularly influential. Any downturn is a matter of concern not just for the workforce, but also for small and medium-sized enterprises that are in the supply chain.

In the US or EU, significant shifts in the auto industry's financial health often result in major policy responses, ranging from bailouts to tax incentive schemes. The US government, for example, rescued general motors and Chrysler during the 2008 recession. We might expect to see Japan's government enact similar measures if this downturn continues.