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GM has already come out today and said that bankruptcey is not an option. They also got a a huge loan from the fed's this past week. They are not going bankrupt. Ford and Chrysler on the other hand, I am not too sure about
Ford should do what they did back in the 20's after the model T was being out sold by GM's offerings. Close the factories, retool them and make cars people want.
I don't blame the America auto makers profiting from SUVs etc they brought in a lot of money. But gas didn't go up in a few months, they had years to start planning for future markets. They seemed to have no plan B, why not do the R&D for cars that would sell better with high gas prices as a contingency plan? If the research was done it would only take them about a year to get the cars out to the market.
GM has already come out today and said that bankruptcey is not an option. They also got a a huge loan from the fed's this past week. They are not going bankrupt. Ford and Chrysler on the other hand, I am not too sure about
GM can say whatever they want. Bankruptcy is seldom the "choice" of the firm. Sometime take a look at the balance sheet of this firm. It's already bankrupt by any reasonable measure, and no amount of additional borrowing by a company with such enormous negative cash flow will help. Borrowing/piling on additional debt to a company that already has over $200 billion in liabilities is ludicrous.
Last edited by jimmyP; 10-10-2008 at 06:30 PM..
Reason: add
I do think we have heard the death knell of the Big Three american auto makers. The fed govt has done a lot to prop them up over the years, but it now has bigger fish to fry with the entire financial/banking industry teetering on ruin. Life will go on if the U.S. stops manufacturing automobiles on a large scale (except for maybe in Detroit). And the Big Three going under could also lead to good ole fashioned american innovation where a new company could pop up to start making quality hybrids.
I would bet that they leave detroit if they just scale down. They are how paying off employeees to retire.
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