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Why Asian Automakers Don't Want Detroit to Fail

Big Three bankruptcy would disrupt supply chain, further sour US economy

By Clay Dillow, Newser Staff

Posted Dec 16, 2008 11:01 AM CST

(Newser) – As Detroit’s Big Three await word on the fate of their much-needed bailout, an unlikely group of supporters has assembled in their corner: foreign automakers. A collapse of General Motors, Ford, or Chrysler would devastate overseas manufacturers as well, CNNMoney reports, spreading bankruptcy to suppliers around the globe and forcing dealer networks worldwide to replace failed brands.

The US is the largest market for Toyota, Honda, and Nissan, and a failure in Detroit would cause more economic turmoil, further stifling demand for their cars. A fire sale of, say, GM’s entire inventory would decimate US auto prices, and the Asian giants also worry that a low-cost competitor like India’s Tata could quickly gain a foothold by buying up abandoned manufacturing plants.

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Executives from Detroit's Big Three and chief of the UAW on Capitol Hill angling for federal aid for the auto industry. (AP Photo)

Ratan Tata, chairman of India's Tata Motors, poses with the company's new Vista. Asian automarkers worry a low-cost outfit like Tata might move in if one of Detroit's makers fails. (AP Photo)

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We support measures to help the industry. We just want a strong, competitive, healthy industry.
- Mira Sleilati, Toyota spokeswoman

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Why Asian Automakers Don't Want Detroit to Fail