If we’ve said it once during this domestic automakers’ crisis we’ve said it one thousand times: no business is an island. While people are concentrating on the failures of General Motors, Ford, and Chrysler, major world auto companies are also cutting back on production, laying workers off and re-thinking their profit forecasts.
How? Through the parts suppliers.
Pretty much the same parts suppliers who sell parts to General Motors, Chrysler, and Ford also sell parts to Toyota, Honda, and Nissan. A bankruptcy of one or more of the Detroit Three will result in bankruptcies of many of the part suppliers. This will affect the ability for the foreign automakers to get the parts they need. And that will lead to more production cuts and worker lay offs.
A bailout of the American auto industry would sure help the foreign automakers too.
via Time
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