Daihatsu, the Japanese automaker owned by Toyota, has halted domestic production after admitting it forged the results of safety tests for its vehicles for more than 30 years.
Daihatsu, the Japanese automaker owned by Toyota, has halted domestic production after admitting it forged the results of safety tests for its vehicles for more than 30 years.
where is the money going to come from if they can’t sell anything?
If they don’t have the cash on hand to survive payroll for 5 years they’ll have to liquidate assets and let people know they won’t be able to reopen so should try and find employment elsewhere while using the asset to pay them for the 5 year period wether they get a job elsewhere or wait to get a job after that 5 years.
Doesn’t that ultimately punish not the company, but anyone who lent money or sold material to the company? Usually assets would be liquidated to pay off creditors but if all the assets go to employees creditors don’t get paid. This really hurts all the small businesses who sold supplies or materials to the company and haven’t been paid for them yet.
And of course, this all ignores the fact that for most companies most of their valuation is in their intellectual property, mainly their brand identity and recognition. And for manufacturing company’s, even most of the tangible assets are going to be things like factory buildings and equipment. Those things are all highly specialized so it’s very difficult to get someone else to come in and use that space to the same level of productivity. That will result in major damage to the local economy when a huge source of tax revenue and jobs suddenly disappears.
I’m not saying all this because I think companies should get away with whatever they want. Not at all. I just want to give some context for why these “obvious solutions” aren’t being used. It’s not that the entire world is in some conspiracy. Many of these problems are legitimately very difficult to solve.
5 - 10 years is a bit much, but liquidate the entire company, assets, buildings, real estate, etc. pay the executives $0, and continue salaries for as long as possible with those funds.