Japan business leaders hoping for GM revival after bankruptcy

TOKYO, June 1 Kyodo -
Japanese automakers and business leaders said Monday they hope the imminent
bankruptcy of General Motors Corp. and subsequent U.S. government measures will
help to get the ailing U.S. auto giant quickly back on its feet to stem the ill
effects on the economy.
''It is important that GM works towards an early rehabilitation, which will
lead to the development of the auto industry as a whole,'' Toyota Motor Corp.
President Katsuaki Watanabe told reporters in Tokyo. ''We hope for a solid
market recovery.''
The comment came after the U.S. government said Sunday it will effectively
nationalize the Big Three automaker after its planned Chapter 11 bankruptcy
filing later in the day in what will be the largest nonfinancial corporate
failure in U.S. history.
Watanabe also said Japan's top automaker and GM both plan to continue their car
manufacturing joint venture in California, which dates back to 1984.
New United Motor Manufacturing Inc. produces Toyota's Corolla and Tacoma pickup
truck as well as GM's Pontiac Vibe.
The company said separately in an official comment that it hopes the bankruptcy
proceedings and the U.S. government aid ''will stabilize GM's business and lead
to the competitive health of the entire industry.''
Japan's top business leader Fujio Mitarai told reporters on Monday that the
effective nationalization of GM will be ''a short-term and exceptional
measure'' and was ''an inevitable choice'' to minimize the huge adverse impact
on the U.S. economy.
''I hope this will allow GM to make a fresh start so it can be reborn as an
even more powerful company,'' said Mitarai, chairman of the Japan Business
Federation, known as Nippon Keidanren.
But Mitarai, who is also chairman of Canon Inc., added that while the U.S.
automaker's problems were triggered by the global economic recession, they are
also the result of a gradual social transition to energy efficiency and
eco-friendliness.