Auto suppliers face difficult time as bankruptcies rise

The decline in auto sales is now threatening many industry suppliers around the world:

Today, the main Japanese car parts group has warned that “Toyota’s production cuts will cause bankruptcies among suppliers if the government restricts aid to large manufacturers”.
• Last month, the main US associations requested $18.5bn in support from the Obama administration, and met Treasury officials this week to press their case.
• Similarly, Bosch’s CEO, Franz Fehrenbach, has warned that in Europe, “A slew of suppliers will no longer be able to finance themselves and stay solvent in the first quarter.”

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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