ASO, OBAMA HAND IN HAND ON ECONOMIC SLOWDOWN
World most powerful economies are worry about economic slowdown. On one side US companies are asking of bailout package and on other side companies in world second largest economy Japan are cutting their production due to decline in demand. Talking about automobile sector both these economics are hit worst like anything.
The US's Big Three carmakers, General Motors (GM), Chrysler and Ford, ar
e presently fighting for their bread and butter. They had examined the possibility of going into Chapter 11 bankruptcy. Ford lost $ 14.6 billion in 2008 a largest annual lost in their history. Ford Top officials have decided to cut the salaries of executive by 30% for next two years.
The world's No. 1 automaker Toyota reduces their production by 40% in J
apan and 65% percent in U.S. Toyota faces its first corporate loss in its 70-year history. Another Japanese car maker Honda reduces their production by 33 percent to 226,551 units in January. The Company’s sales in the U.S., its biggest market, plunged by 28
Both governments are worried by this situation as Japanese exports to the US fell nearly by 53% in January. Japan government said last week that their economy was in its most serious crisis since World War II, It was their worst performance from last 35 years.
In the first meeting at White house US President Barack Obama and Japanese Prime Minister Taro Aso have agreed to work together to fight with this downtrend and stimulate economic demand. Mr. Aso as the first foreign leader is first to visit him in Washington since he took office.
The two said they would step up joint efforts “closely and urgently” to beat the global economic crisis and discussed the need to maintain international confidence in the US dollar.
They also pledged to work closely through the Six-Party process to verifiably eliminate North Korea's nuclear programme
"We will have to work together hand-in-hand," Obama said.
"The most important thing is to maintain confidence in the dollar as a key currency. If confidence in the dollar is damaged it will have a huge affect."
The value of the dollar has risen from last six months, but Japanese leaders remain worried about the yen's decline in global currency markets.
Any weakening of the dollar against the Japanese currency yen would further shrink the demand for Japanese exports.
e presently fighting for their bread and butter. They had examined the possibility of going into Chapter 11 bankruptcy. Ford lost $ 14.6 billion in 2008 a largest annual lost in their history. Ford Top officials have decided to cut the salaries of executive by 30% for next two years.
The world's No. 1 automaker Toyota reduces their production by 40% in J
apan and 65% percent in U.S. Toyota faces its first corporate loss in its 70-year history. Another Japanese car maker Honda reduces their production by 33 percent to 226,551 units in January. The Company’s sales in the U.S., its biggest market, plunged by 28
Both governments are worried by this situation as Japanese exports to the US fell nearly by 53% in January. Japan government said last week that their economy was in its most serious crisis since World War II, It was their worst performance from last 35 years.
In the first meeting at White house US President Barack Obama and Japanese Prime Minister Taro Aso have agreed to work together to fight with this downtrend and stimulate economic demand. Mr. Aso as the first foreign leader is first to visit him in Washington since he took office.
The two said they would step up joint efforts “closely and urgently” to beat the global economic crisis and discussed the need to maintain international confidence in the US dollar.
They also pledged to work closely through the Six-Party process to verifiably eliminate North Korea's nuclear programme
"We will have to work together hand-in-hand," Obama said.
"The most important thing is to maintain confidence in the dollar as a key currency. If confidence in the dollar is damaged it will have a huge affect."
The value of the dollar has risen from last six months, but Japanese leaders remain worried about the yen's decline in global currency markets.
Any weakening of the dollar against the Japanese currency yen would further shrink the demand for Japanese exports.
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