Japan’s trade and economy minister said yesterday that his nation remained watchful of fallout from Chrysler’s bankruptcy because of possible damage to Japanese parts makers.
“We must take appropriate measures if they are being hurt,” Economy, Trade and Industry Minister Toshihiro Nikai said at a news conference on nationally televised news.
Nikai promised the government would “respond appropriately,” while declining to elaborate.
PHOTO: REUTERS
Government aid to troubled suppliers, mostly small and mid-sized companies in Japan, remains a possibility at a time when overall assistance to troubled businesses has been earmarked in response to the recession set off by the US financial crisis.
Japanese parts suppliers do business with major manufacturers such as Toyota Motor Corp and Honda Motor Co. They also count on business with US companies and have also set up offices and plants in the US.
Losing business with Chrysler and the possible broader impact of the bankruptcy on the entire US auto industry could become a problem for Japanese suppliers already struggling amid hard times.
“There are quite a number of people and companies in Japan that are closely linked with Chrysler’s business,” Nikai said.
Chrysler, the third-largest US automaker, filed for Chapter 11 bankruptcy protection in New York on Thursday after months of surviving on government loans. It is hoping to reorganize its business and build cleaner cars through an alliance with Italian automaker Fiat.
The US’ third-largest car manufacturer’s bankruptcy filing came after a group of creditors defied government pressure to wipe out Chrysler’s debt. The company plans to emerge in as little as 30 days as a leaner, more nimble company, with Fiat potentially becoming the majority owner in the future. In return, the federal government agreed to give Chrysler up to US$8 billion in additional aid and to back its warranties.
“It’s a partnership that will give Chrysler a chance not only to survive, but to thrive in a global auto industry,” US President Barack Obama said from the White House.
Chrysler said it would close all its plants starting on Monday and they will stay closed until the company comes out of bankruptcy. At least three Detroit-area factories sent workers home on Thursday after suppliers stopped shipping parts over fears they would not be paid.
Chief executive Robert Nardelli announced he would step down when the bankruptcy was complete and take a post as an adviser with Cerberus Capital Management LP, which would give up its 80 percent ownership of Chrysler under the automaker’s plan. Vice chairman Tom LaSorda, who once ran the company when it was owned by the German automaker Daimler, said he would retire.
Fiat will initially get 20 percent of the company, but its share could rise to 35 percent if certain benchmarks are met. Fiat said on Thursday it could get an additional 16 percent by 2016 if Chrysler’s US government loans are fully repaid. Fiat will also get access to the North American market through Chrysler dealerships.
Fiat chief executive Sergio Marchionne said he planned to spend time meeting Chrysler employees and touring its plants over the next few weeks.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique