Thursday, December 4, 2008

Ripple effect seen if GM, Chrysler or Ford goes bankrupt

December 4, 2008

A bankruptcy filing by General Motors Corp., Chrysler LLC or Ford Motor Co. would have an immediate impact on every Asian and European manufacturer operating in North America because of their dependence on parts suppliers used by the domestic automotive industry.

For example, 58% of GM's North American suppliers also supply parts to Asian automakers, according to research conducted by automotive consulting firm CSM Worldwide.

Among Chrysler's suppliers, 59% also supply Asian automakers and among Ford suppliers, the figure is 65%.

"The bankruptcy of a major automaker won't be just a Detroit problem or a Michigan problem," Craig Cather, CSM's president and CEO, said in a statement. "The pain will quickly spread to the Southern states that have new foreign-owned auto plants, as well as Canada and Mexico."

Toyota Motor Corp. and Honda Motor Co. have made similar statements.

1 comment:

Anonymous said...

And yet, these Congressmen & Senators can't grasp the concept.
Apparently people applying for political positions should be required to have an economic background as well.
They are willing to further cripple the US economy just because there are not enough people to advise them of the catastorphe to come.