Why The Big Three Cannot Fail
On the surface, from a serious business standpoint, it may seem as though a failure for the Detroit Three would mean good news for companies like Honda, Toyota, and Nissan. But in all reality, the Asian automakers wouldn’t benefit from a collapse of the Big Three and wouldn’t benefit from the cash flow.
Even though Toyota, Nissan, and Honda would certainly gain market share from the failure of the Big Three, there are some problems associated with that. The immediate fallout from any bankruptcy of Ford, General Motors, of Chrysler would spell problems for the Asian car-makers because it would spread quickly through the industry like wildfire. The damage done to companies like Ford through bankruptcy would infuse an automotive industry that is bleeding cash with uncertainty and problems.
If the Big Three fail, it will be a strong blow to the very core of the United States economy and global markets would instantly begin to feel the ripples. Although the Asian carmakers could eventually recover from the aftershocks, many analysts predict that Nissan, Honda, Toyota, Suzuki, and others simply cannot afford to have the Detroit Three fail.
With Nissan cars not moving how they should, it is important that the Asian automakers have something to “lean on” in the ongoing struggles. Perhaps in a weird way, Nissan et al could use the Detroit Three to prop up their own sales and the car companies could rely on one another like a coalition.
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