Japanese Suppliers Seek Gov't Help for GM Bankruptcy
By wchung | 07 May, 2025

Japan will consider assistance for autoparts suppliers if they are seriously hurt by fallout from General Motors Corp.‘s likely bankruptcy, the industry minister said Friday.

Toshihiro Nikai, minister of economy, trade and industry, said he was closely monitoring how Japanese manufacturers may be affected if General Motors collapses. He said the government “must consider measures,” if there are any signs of serious trouble, according to a ministry official.

A person familiar with GM’s plans has said it was “probable” that the Detroit-based automaker would seek bankruptcy protection on Monday. The person didn’t want to be identified because the plans were still under discussion with the U.S. and Canadian governments.

GM has business ties with more than 100 Japanese suppliers, many of them small companies vulnerable to cash shortages.

GM’s woes have been scrutinized in Japan — home to the world’s top automakers, including Toyota Motor Corp. and Honda Motor Co. The recent news about GM has been relatively calmly received here even as executives acknowledge the possibility of ripple-effects on the industry and American consumer sentiments.

Still, worries are simmering about some of Japan’s smaller manufacturers, which may not be able to ride out the loss of their GM business or the burden of bad debts.

Some Japanese companies, including Aisin Seiki, have applied for a part of the U.S. Treasury Department’s $5 billion support program for suppliers.

But it’s unclear whether they will get any of the money.

Nikai’s comments appear aimed at allaying such fears by assuring the Japanese government will step in and help any cash-strapped manufacturers.

In the long run, a weakened GM is expected to be a growth opportunity for Japanese automakers with their strength in smaller fuel-efficient vehicles.

The U.S. Treasury has already loaned $19.4 billion to GM, which lost $6 billion in the first quarter, and will get 72.5 percent of the new company’s stock. In bankruptcy protection, GM is expected to then close factories, cut jobs and try to return to profitability.

5/29/2009 3:29 AM YURI KAGEYAMA AP Business Writer TOKYO