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GM collapse could spell disaster for Ford, Toyota, Honda:

GM collapse could spell disaster for Ford, Toyota, Honda

According to Automotive News, the failure of GM – or any other member of the Big Three – would send a domino effect through the industry, bringing down dealers, suppliers and even foreign automakers.

Because automakers and suppliers are so intertwined, the failure of one car maker has the potential to bring down several suppliers. In turn, those bankrupt suppliers would interrupt Ford and Chrysler’s supply lines, which would likely be enough to topple the already crippled automakers.

“If GM goes down, it will take down companies like Lear and Johnson Controls,” Wolkonowicz says. “That will shut Ford down, and it would shut down production at Toyota and Honda,” John Wolkonowicz, an analyst for Global Insight, told Automotive News. “They would go down like dominoes.”