We all know that the wind of recession had severely hit the global car market. Big U.S car manufacturers like the General Motors, Ford, and the Chrysler were on the verge of bankruptcy and had asked for financial help. It was a big amount that these three major players in the industry required.

They applied for a 14 billion dollar bailout package. But unfortunately, after weeks of long debate and discussions, the Senate refused to provide the said amount to the struggling U.S. auto manufacturers. The General Motors and Chrysler required billion of dollars to forestall a collapse in their business while Ford desired a hefty line of credit.

Shockingly, the proposed bailout is rejected. And this has further raised the fear of a deeper economic downturn along with heavy financial crisis.

In U.S one out of ten jobs is linked to the auto sector. And any kind of hurdle on the automotive sector would have a direct impact on the job market, which would further jeopardize the persistent efforts to ease the economic recession.

With the loss experienced by the Ford, GM, and Chrysler, over ten thousands of jobs are at risk. Adding to that, further financial shocks and disruption in the global auto industry are the most aspirated challenges to overcome. Even the dollar, Asian stocks, and commodity prices have started tumbling in response to the immediate effect of the rejected bailout.

General Motors, Ford or Chrysler failure would also aggravate the market situation in India. The Indian auto industry is gradually making efforts to revive its future. But, a bankruptcy in U.S would definitely endanger the Indian car industry. This is because these car companies have a good market share in India with General Motors and Ford accelerating at a faster pace. Even the auto component industry in the country would get affected by forced production shut down of the U.S. “Big Three”.

Now, it’s time to analyze and study how the collapse of proposed bailout would influence the Indian car market and to plan strategies to overthrow the challenges in the recent times.