Automobile Giants File For Bankruptcy; Where Are the Down Stream Suppliers Going...

Automobile Giants File For Bankruptcy; Where Are the Down Stream Suppliers
Going Next?

HONG KONG, June 26 /PRNewswire-Asia/ -- 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.
SOURCE Fairtheworld

Dodona Song at +86-159-1626-1151 or news@fairtheworld.com