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.”