As their American auto maker partners are stuck into business crises, Japanese auto parts manufacturers are trying to take advantage of the U.S. governmental bailout plans for the auto industry in a bid to strengthen their risk management capability, Japanese media reported on Monday.
In order to ensure that auto parts makers can get money timely after finishing the shipment orders, the U.S. government announced on Sunday an aid plan worth 5 billion U.S. dollars for the auto parts suppliers, the reports said.
Yorozu, a Japanese auto parts maker, has decided to apply for the U.S. government's guarantee for its creditor's rights to the General Motors (GM). Japan's biggest auto parts maker, Denso Corp., which has big trades with the GM and Chrysler, is now also considering making use of the U.S. bailout project.
Affiliated to Toyota, Denso provides auto navigation systems and air conditioning systems to the GM and Chrysler. From April to December last year, its trade volumes with the two U.S. auto giants reached 88.6 billion yen (895 million U.S. dollars) and 35.2 billion yen (356 million dollars) respectively, accounting for nearly 5 percent of its total sales in the period.
Source: Xinhua
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