Japan wary of Chrysler fallout on parts makers

I can't believe the Japanese haven't figured out what is about to transpire. The latest Newsweek magaizine adds fuel to the fire that the US government, for better or worse, is doing nothing more than assisting the big three as they shift from gasoline powered engines to electric.

A combination of Americas strategic move away from foreign oil and China's unwillingness to open its markets to US auto manufacturers has accelerated Americas willingness to adopt cleaner more efficient autos while also creating a totally new market. The leap to electric cars will be fast and should put the US in a dominant position for the next 15-20 years. GM, Chrysler, Ford etc have as many as 30 vehicles ready for mass production. What they don't have... is the desire to use their own funds for the factory switch overs. Ahhh, enter the US government, and make no mistake, this has been in the works for at least the past 3-4 years. As for Japan ? Sorry to say, unprepared ! I don't see the US government wiling to help Toyota, Nissan, or Honda make the switch. And the Japanese government remains paralyzed with no vision whatsoever. They still believe that GM and Chryslers current situation is about the economy, failing to admit that this is also about national security and advanced technology. I for one can't wait to jump into a new GM Volt once mass production starts and prices drop.

ohhhhhhhhhhhhhh when this crisis end...i cant find a better job f the situation always like this....i guess stimulus plan of obama doesnt work out,,,,,,,,,,,,,,,,,

saruzenki:

" Americas strategic move away from foreign oil "

Obamas take-over of the auto industry is not a "strategic move away from foreign oil" in any way, shape, matter or form.

As your for new Volt, are you going to pay its realistic price, or waiting for government subsidy? And how do you want to run it... with electricity generated by the same coal-fired power plants that the current administration villifies? Good luck.

"Obamas take-over of the auto industry"

The president is not taking over the auto industry - he just wants the auto industry to stop making cars that people want and make these so-called green cars.

Some people want green cars.

But more people want the gas guzzlers.

WillB, You are going to need more facts or data to back your opinions. As for me, just a couple of questions for you to ponder. If GM is in such bad shape why has "Segway" agreed to team up with them to produce a two seated vehicle for the chinese market ? Ummm, have you read the latest "Newsweek" ? And second, if things are so bad at Chrysler... why would Fiat want to jump on their band wagon ? As usual many of you are simply not in the loop and show up here to publicly vent your ignorance. I on the other hand have been doling out free economic advice such as

Get in the market when it hit 6,500

Pharmaceuticals like Chugai look great for the long term, of course that stock jumped 227 just a few days ago but I talked about them months ago !

Mcdonalds before they opened the McCafe.

And I'm telling you now, GM and Chrysler are poised to dominate the auto industry for the next 15-20 years. All this "bankruptcy" talk is only for the media and various simpletons looking to finger point at the USA. Make no mistake, this has been in the works since 9-11 !

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"GM and Chrysler are poised to dominate the auto industry for the next 15-20 years"

Har!

", if things are so bad at Chrysler... why would Fiat want to jump on their band wagon ?"

Chrysler hasnt the time, money, or enough engineering savvy left to develop fuel efficient cars that people want to buy. In their desperation Cerberus will fall into bed with anyone to get them out of their current fix. Begging at the door of one of the few automakers that have managed to turn their fortunes around is their only hope of gaining US government support.

As for the GM Volt, 7/10 for effort but there's a long way to go yet and a lot of competition on the horizon. Plug-in cars, hybrid or otherwise are only part of the answer for the mid term.

Shame its taken an economic catastrophe to shake the US big three out of their blinkered short term SUV madness.

"Chrysler hasnt the time, money, or enough engineering savvy left to develop fuel efficient cars that people want to buy."

So why would Fiat, or any other entity buy into such a doomed scenerio ? I for one am gonna laugh when in the next year or so we all see Toyota merging with Nissan, and Honda asking for "bailout" money. None of these companies are prepared for what is about to take place, a quick and efficient transfer over to electric autos ! The US has been preparing for this for years. There are already hubs and stations for electric cars to re-charge, for free, in some of Americas major cities... like Seattle Washington ! Seems some of you have been relying on Japanese news to keep you informed of the worlds events... now theres a "har-har" moment. Well done America, you are about to kick the J's in the nads and jump to the next stage of technology leaving the chinese to figure out what to do with all their gasoline powered engines... brilliant !

more people want the gas guzzlers.

Any links to relevant market research? Otherwise it's a throwaway claim.

saruzenki, Honda already asked for bailout money. You might want to get up to speed on this.

From what I've read, Fiat will use Chrysler to make/market/sell Fiat cars in the US. That's why they want it, not so much for what Chrysler is now.

As for "Obama's take-over of the auto industry", I was under the impression that if the US govt didn't pour money into the industry, it would have gone belly-up creating mass unemployment and stuffing up the economy even more. Now the hand is forced, it would be wrong as an investor not to want the companies to be profitable. "Business as usual" is what got these manufacturers in this problem in the first place. Things had to change.

donkusai, in sheer terms of logic, yours is hard to grasp.

"Fiat will use Chrysler to make/market/sell Fiat cars in the US. That's why they want it, not so much for what Chrysler is now."

Har ! Who ever heard of a company hitching onto the coattails of another that is about to file for bankruptcy protection ? Sorry mate, but Fiat has the inside scoop, and some technology that Chrysler wants. This isn't about marketing, its about technology... electric !

And tokyohustla,

"Honda already asked for bailout money. You might want to get up to speed on this."

I know they went "panhandling" to the Americans for free money, but have they done this in Japan also ? Wow.

"So why would Fiat, or any other entity buy into such a doomed scenerio ? "

Not for Chryslers glorious future thats for sure. If Chrysler were in such good shape they would be looking to make their own low cost aquisitions. The fact is Cerberus has no choice but to essentially hand over its Chrysler business lock stock and barrel. If the take over does go ahead, in time there will be little recognisable Chrysler left. As for Fiat, its a huge risk (proven by the Daimler Benz/Chrysler attempt) offset only by the chance of a cheap toe in the door to the US market. But maybe they can get support and spread the risk around. If they take GMs European operations too, theyll no doubt get the Chevy/Opel/Vauxhall Volt and some cash from European governments as well.

Make no mistake, automakers, especially GM and Chrysler, are fighting for their very existence so when they go asking governments for money, its to help keep operations (read jobs) alive. With the onerous conditions attached by governments its certainly not "free money", money given to car makers, Japanese or otherwise, is to help pursuade them from pulling jobs. Those governments that do give hand outs are looking for a return in cash or in kind.

"If Chrysler were in such good shape they would be looking to make their own low cost aquisitions."

Sorry, you are missing the point. Chrysler wants to shift over to the future of automobiles... electric ! The kicker is they want to do it in the next few years and as cheaply as possible... hello Uncle Sam ! Chrysler is not looking to acquire anything or anybody. Fiat offers access to the European markets, much to the Germans chagrins. Again, just check out todays Yahoo or Drudgereport for more evidence at what is really happening. Fiat is about to score big time ! As for this...

"Make no mistake, automakers, especially GM and Chrysler, are fighting for their very existence"

I agree, to a point ! GM, Chrysler, and Ford are pushing the envelope. They are about to accelerate the technology and push the US into unchartered waters. The pay will be huge. First though you must understand that the gasoline powered auto industry is "dead" !!! The real question is not for the big three, who are manuevering to have the US gov help pay for their factory changeovers, no, the real questions are for Toyota, Honda, Nissan, Bmw, Volvo, VW etc. Are these companies ready for what is about to take place in the next two years. I mean they can forget about the Chinese market. China has been very clear, domestic auto makers will have full reign of the country. Once they pilfer the technology from the US, Germans, and Japanese... well theres the door, don't let it hit you on the way out. I for one can't wait to return to this forum 3 years from now with another " I told ya so" to hang on this forum.

saruzenki - "Chrysler wants to shift over to the future of automobiles... electric !"

You seem to demostrate a huge misapprehension. Chrysler can texist without Fiats small engine technology. In return Chrysler's infrastructure offers Fiat a base to make & sell its product into the US and Im talking petrol and diesel engines, platforms and whole vehicles with Chrysler badges on them.

"Fiat offers access to the European markets, much to the Germans chagrins."

Chrysler has an extensive network in Europe, it doesnt need help with access. Chrysler is close to death in Europe though, due to poor quality and a dismal lack of market suitable product.

"you must understand that the gasoline powered auto industry is "dead" !!!"

Thats a way off yet Im afraid. All the major manufacturers have their own take on the future of electric motoring. Honda have the Clarity on the road right now, development done and are investing heavily in hydrogen production and battery technology, like all the major makers. Dont believe all the hype about battery cars though. They are useful for relatively short distances only and apartment dwellers without a driveway and plug socket to charge their cars for several hours are stymied. They also come with their own set of pollution problems, not least of which is a simple redistribution of CO2 emmissions.

Petrol and diesel engines have a lot of development potential left in them and will continue to serve for a while yet but the US will have to drop its love of engine capacity. Hydrogen fuel cell cars like the Clarity promise electric motoring as we know it today but their infrastructure needs more than a couple of years investment yet. Come back and say "I told you so" in ten years.