Japan: Impact From GM Failure Would Be Limited

Impact from likely bankruptcy of U.S. auto giant General Motors would be limited on Japanese firms if U.S. government prepares a safety net, a senior industry ministry official said.

TOKYO (Kyodo) -- Impact from the likely bankruptcy of U.S. auto giant General Motors Corp. would be limited on Japanese firms if the U.S. government prepares a safety net, a senior industry ministry official said Thursday.

"We think the global economy has almost factored in the circumstances surrounding the U.S. car industry," Vice Minister of Economy, Trade and Industry Harufumi Mochizuki said.

If a road map for restructuring is shown, the possible impact would be "within our expectations to some extent," he said.

Japanese auto parts suppliers play some roles in GM's business. The U.S. government is working on a compensation program for those related firms, Mochizuki told reporters, adding that Japanese suppliers will be under the umbrella.

GM said Wednesday talks with bondholders to cut its debt have failed, making it imminent that the Big Three carmaker will file for bankruptcy protection.

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