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.
Nvidia Corp yesterday unveiled its new high-speed interconnect technology, NVLink Fusion, with Taiwanese application-specific IC (ASIC) designers Alchip Technologies Ltd (世芯) and MediaTek Inc (聯發科) among the first to adopt the technology to help build semi-custom artificial intelligence (AI) infrastructure for hyperscalers. Nvidia has opened its technology to outside users, as hyperscalers and cloud service providers are building their own cost-effective AI chips, or accelerators, used in AI servers by leveraging ASIC firms’ designing capabilities to reduce their dependence on Nvidia. Previously, NVLink technology was only available for Nvidia’s own AI platform. “NVLink Fusion opens Nvidia’s AI platform and rich ecosystem for
WARNING: From Jan. 1 last year to the end of last month, 89 Taiwanese have gone missing or been detained in China, the MAC said, urging people to carefully consider travel to China Lax enforcement had made virtually moot regulations banning civil servants from making unauthorized visits to China, the Control Yuan said yesterday. Several agencies allowed personnel to travel to China after they submitted explanations for the trip written using artificial intelligence or provided no reason at all, the Control Yuan said in a statement, following an investigation headed by Control Yuan member Lin Wen-cheng (林文程). The probe identified 318 civil servants who traveled to China without permission in the past 10 years, but the true number could be close to 1,000, the Control Yuan said. The public employees investigated were not engaged in national
CAUSE AND EFFECT: China’s policies prompted the US to increase its presence in the Indo-Pacific, and Beijing should consider if this outcome is in its best interests, Lai said China has been escalating its military and political pressure on Taiwan for many years, but should reflect on this strategy and think about what is really in its best interest, President William Lai (賴清德) said. Lai made the remark in a YouTube interview with Mindi World News that was broadcast on Saturday, ahead of the first anniversary of his presidential inauguration tomorrow. The US has clearly stated that China is its biggest challenge and threat, with US President Donald Trump and US Secretary of Defense Pete Hegseth repeatedly saying that the US should increase its forces in the Indo-Pacific region
ALL TOGETHER: Only by including Taiwan can the WHA fully exemplify its commitment to ‘One World for Health,’ the representative offices of eight nations in Taiwan said The representative offices in Taiwan of eight nations yesterday issued a joint statement reiterating their support for Taiwan’s meaningful engagement with the WHO and for Taipei’s participation as an observer at the World Health Assembly (WHA). The joint statement came as Taiwan has not received an invitation to this year’s WHA, which started yesterday and runs until Tuesday next week. This year’s meeting of the decisionmaking body of the WHO in Geneva, Switzerland, would be the ninth consecutive year Taiwan has been excluded. The eight offices, which reaffirmed their support for Taiwan, are the British Office Taipei, the Australian Office Taipei, the
RSS