As Detroit's Big Three Automakers and Washington come together to look at a bailout, the world waits for the economic aftermath. Newsy.com brings you the global story.
As the U.S. government moves closer to an auto industry bailout, the effect is felt around the world. We're tracking perspectives from the New York Times, China Daily, Reuters, and the Associated Press.
While opinions on the bailout are abundant, the New York Times points out that foreign automakers are keeping silent. “As a result of their muted stance in the debate, the foreign companies, which have invested close to $40 billion in 70 American facilities in the last 30 years, have largely escaped any blame for Detroit’s woes.” (The New York Times)
But as we learn from China Daily, this doesn’t mean other countries aren’t taking action or at least contemplating it. Chinese car companies are breaking plans to buy risky assets off the Big Three.
In a story “‘Big 3’ look for Chinese medicine”, China Daily quotes an analyst, who believes “It’s very risky for Chinese automakers to acquire US auto assets and brands now,” said Dong Jianhua, an auto analyst with Southwest Securities. (China Daily)
While China takes a cautious stance, Canada feels obligated to help because of its financial ties to the U.S.
Reuters comments that “Canada will have to find a way to support the Detroit Three, the 400,000 jobs related to the auto sector in the province and the Canadian $20 billion (US$15.9 billion) a year they bring to the Canadian economy.” (Reuters)
As with Canada, other countries are watching to see what financial effects come from both Detroit and Washington.
The Associated Press reports if the Big Three fail it “…would deal a heavy blow to the U.S. economy and exporting countries like Japan who rely on American consumer spending.” (AP)
If this is a global issue, shouldn’t foreign carmakers be speaking up? What are your opinions on the bailout and its far-reaching influence?
Please share your comments on our website, and check out the sources we used in this story.
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