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DETROIT (Reuters) - If a chain is only as strong as its weakest link, Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) and Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) have a problem in the U.S. market directly tied to Detroit's financial crisis.
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Fifty-eight percent of General Motors Corp's (GM.N: Quote, Profile, Research, Stock Buzz) suppliers and 65 percent of Ford Motor Co's (F.N: Quote, Profile, Research, Stock Buzz) suppliers also supply Asian manufacturers. By comparison, 37 percent of GM's suppliers have ties to European automakers.
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"Honda and Toyota themselves have started to say if these American automakers start to fail, and fail quickly, it will take out the supply base they all depend on," said David Kudla, chief executive of Mainstay Capital Management.
Can we really afford to let the Big 3 automakers fail?
Originally posted by Dramey
i hope this doesnt come off as trolling but im being surprised this isnt much more focus on this thread, many have made great statements here, but im surprised there isnt more support for or against such a important situation
makes me wonder if the propaganda machine of the big 3 is working and gaining support
or if people honestly just dont give a damn anymore because they know no matter what the people say the government is going to do exactly what they want and we just have to live with it
Originally posted by Jinni
I'm interested to know if there is a way out at all for car manufacturers.
Even if you give the big 3 a cash injection it will not solve the problem. The only thing it will give is a big bonus to everyone before the ship sinks.
Originally posted by mrmonsoon
I disagree with the post.
If one or more of the "BIG THREE" fails, then, guess what, cars will still be purchased.
If two or three of the big 3 fail, cars will still be sold.
As for the suppliers, it will put them in a bind, but only just so much.
Allow me to explain, if cars are sold, they must be built and there must be parts suppliers,
I am sure the suppliers can survive on, weather the cars sold are big 3, or another company.
What I mean is if GM does not sell 3 million cars, then toyota/ford/honda will build and sell those cars/trucks.
The cars and trucks that are sold will need parts suppliers......................
You get the point.
The Commerce Department reported Friday that the trade deficit, the gap between imports and exports, jumped 9.3%, to $63.1 billion. The imbalance was much larger than the $60 billion that had been expected.