Automobile Giants File For Bankruptcy; Where Are the Down Stream Suppliers Going Next?
HONG KONG, June 26 The Lear Corporation, one of the world's largest makers of auto seats, is preparing to file for bankruptcy as soon as next week, according to a person briefed on the matter.
With the restructuring of General Motors and Chrysler, the downstream auto parts suppliers are suffering badly. At the same time, the only alive auto giant amid the Big Three, Ford, announced on the 24th that it would decrease the numbers of its auto parts suppliers from 1683 to 850. Facing the U.S. auto parts industry bankruptcy crisis, the U.S government has rejected the loan application of up to 10 billion US dollars, which makes the situation for the auto parts manufacturing industry even worse.
In Japan, the automaker Toyota posted a record 436.9 billion yen ($4.5 billion) in losses in the year ended in March. That is the first loss for the 72 year-old auto giant since its founding. The loss happens mostly in the European, US, and Japanese Markets. President Akio Toyoda made an apology to the shareholders and will cancel all board bonuses.
Where are the auto parts suppliers going next to survive?
The Chinese market is their most realistic way out. The projected sales volume will be more than 10,000,000 units. The vigorous demand and the strong wish for cooperation of the local auto companies have made it the last harbor for the American auto spare parts industry.
But many difficulties and problems will come along as thousands of American companies crowd into the Chinese market. How can they grasp the excellent opportunity and explore the special Chinese market?
Mrs. Sam Liu of the Automobile Hall of Fairtheworld.com said: The difficulties that American auto parts companies face is not the particular cases. It is the same for most of the companies which are affected by the atrophic market. To explore the global market is a must. They must find the market demand if they want to survive. The Chinese market is the most prospective market. We are willing to help such companies which are in difficulty. The 3D Virtual Auto Exhibition of Fairtheworld can assist companies to find the opportunities globally. While Fairtheworld will no doubt become the best business partner and agent for such auto parts companies to find and select the right new partners in Auto World.