InsideJapan News Network

The perilous state of the US car manufacturing industry could have major implications for the Japanese auto sector, it has emerged.

One of the biggest problems facing car makers in Japan is that they share many of the same parts suppliers as their US counterparts.

Hideaki Homma, a spokesman for Toyota, told the Assocated Press that "the damage to our business is certain to be tremendous".

"The conditions for the US auto market are extremely tough right now, and any additional negative is sure to make things worse," he added.

Meanwhile, Simon Sproule, corporate vice president of global communications at Nissan, said that having one or more of the top automakers in severe distress has profound consequences for the whole industry.

In related news, speculation is growing that the Bush administration could announced a multi-billion dollar bailout package for the Detroit-concentrated car industry tomorrow (December 17th).