Let’s see what comments this one gets: Seven Japanese companies have applied for the US government’s relief program for auto parts and materials suppliers of GM and Chrysler, the Nikkei [sub] says.
The program earmarked $5 billion in public funds to make suppliers whole who are owed money by the two artists.
Four Japanese applicants—Aisin Seiki, Akebono Brakes, Mitsubishi Electric Corp. and Hitachi Metals—have accounts receivable from General Motors and Chrysler.
Yazaki and Nachi-Fujikoshi filed papers due to debt owed by Chrysler.
Yorozu is seeking help with its receivables from GM. Denso, the by far biggest player in the toxic parts business with US OEMs, is also considering tapping the program.
According to the Nikkei, “the U.S. government is expected to deliberate several weeks before deciding whether to honor the debt held by the Japanese autoparts makers.”
Why shouldn’t they get money? GM and Chrysler owe them money. And cannot live without them.
Denso? Is this the moment Toyota gets some play in this comedy? They’ve been very quiet backstage so far….
I don’t think the government can guarantee to payables of US based automakers and then pick and choose which suppliers to pay off based on their nation of origin.
Maybe I’m just simplifying the “problem,” but if one party owes another party money, then it should be paid. I think that’s how it is across all countries and cultures.
Even if it -is- trickier than that, then I agree with John Horner’s comment above. I do look forward to seeing how the media and politicians spin it if they talk about it at all.
Why GM?Did they go chapter 11?If thats the case,I agree with John HornerThier status is no different.
Who would have guessed that shovelling out billions of borrowed dollars might involve difficult decisions?
Once the bailout bucks started to flow, this situation became just as inevitable as it will be unending.
Did everyone think only politically connected operations get our tax dollars? Surprised? AIG was used to funnel billions to overseas concerns already.
PeteMoran: Aisin is 22% owned by Toyota, and, after a quick Google search (to check the ownership percentage) I see that a Toyoda is the Chairman.