(no subject)
I know everyone is tired of hearing about the bailout but I continue to be appauled as how many don't realize how much this is going to kill the economy if the big three go down. Here is a news story about how Toyota and other Japanese companies are terrified about the loss of the big three and explains just how bad things could be:
::snip::
One major problem is that Japanese carmakers in the U.S. share many of the same parts suppliers. If a Detroit automaker were to collapse, suppliers would likely follow, setting off a chain reaction that could would wreak havoc for Japanese production in the U.S., a vital market.
More broadly, the U.S. crisis could lead to huge job losses and further weaken consumer spending, especially for big-ticket items like automobiles. Together, the three big American automakers employ 239,000 workers in the United States. Counting other businesses that depend on the automakers, economists estimate that 2.5 million jobs would be lost if all three companies went out of business.
"Whether it is the impact on consumer confidence or the impact on the suppliers that we all share, having one or more of the major automakers in severe distress has consequences for the entire industry," said Simon Sproule, corporate vice president of global communications at Nissan Motor Co., Japan's third-biggest carmaker.
A possible advantage from a collapse of the U.S. auto industry could come only many years later - perhaps in a decade - when Japanese manufacturers would compete against weaker rivals in the U.S., especially if they further exploit their lead in green technology with hybrids or electric vehicles, said Koji Endo, auto analyst with Credit Suisse in Tokyo.
::snip::
In November, when American auto sales plunged 37 percent to their worst level in more than 26 years, Toyota's sales sank 34 percent, Nissan's were down 42 percent and Honda Motor Co.'s fell 32 percent.
Vehicle sales in Japan and Europe are also waning, and even demand in developing economies in China, India and Latin America is weakening.
"This is a global crisis affecting the entire auto industry: No one is immune," said Nissan's Sproule. "And it is in everyone's interest to see a healthy auto industry that is able to manage through this crisis."
::snip::
But these days, Toyota is no longer viewed as foreign, and consumers understand that Toyota employs American workers and purchases from American suppliers, he said.
"We are a member of the American auto industry," Homma said. "Without (a bailout), chaos is sure to come."
Full story: http://www.msnbc.msn.com/id/28241203/
::snip::
One major problem is that Japanese carmakers in the U.S. share many of the same parts suppliers. If a Detroit automaker were to collapse, suppliers would likely follow, setting off a chain reaction that could would wreak havoc for Japanese production in the U.S., a vital market.
More broadly, the U.S. crisis could lead to huge job losses and further weaken consumer spending, especially for big-ticket items like automobiles. Together, the three big American automakers employ 239,000 workers in the United States. Counting other businesses that depend on the automakers, economists estimate that 2.5 million jobs would be lost if all three companies went out of business.
"Whether it is the impact on consumer confidence or the impact on the suppliers that we all share, having one or more of the major automakers in severe distress has consequences for the entire industry," said Simon Sproule, corporate vice president of global communications at Nissan Motor Co., Japan's third-biggest carmaker.
A possible advantage from a collapse of the U.S. auto industry could come only many years later - perhaps in a decade - when Japanese manufacturers would compete against weaker rivals in the U.S., especially if they further exploit their lead in green technology with hybrids or electric vehicles, said Koji Endo, auto analyst with Credit Suisse in Tokyo.
::snip::
In November, when American auto sales plunged 37 percent to their worst level in more than 26 years, Toyota's sales sank 34 percent, Nissan's were down 42 percent and Honda Motor Co.'s fell 32 percent.
Vehicle sales in Japan and Europe are also waning, and even demand in developing economies in China, India and Latin America is weakening.
"This is a global crisis affecting the entire auto industry: No one is immune," said Nissan's Sproule. "And it is in everyone's interest to see a healthy auto industry that is able to manage through this crisis."
::snip::
But these days, Toyota is no longer viewed as foreign, and consumers understand that Toyota employs American workers and purchases from American suppliers, he said.
"We are a member of the American auto industry," Homma said. "Without (a bailout), chaos is sure to come."
Full story: http://www.msnbc.msn.com/id/28241203/