Ford (F) and General Motors (GM) reported earnings today. As expected, bad losses. Will a government bail out help? Will lower gas prices help?
The USA automakers have been on a downward spiral for years and this may be the end game. GM’s merger with Chrysler is apparently off for now. Detroit’s automakers are joining the long line at the oval office asking for money. Only $50 billion, nothing compared to AIG, right?
Well, we are in the process of nationalizing the banks, might as well do the auto makers too. Even the world’s best auto makers such as Toyota (TM) and Honda (HMC) are suffering severe sales decline. You wonder how General Motors, Ford and Chrysler can possibly survive?
As an aside, I read an article today from Forbes about how many Detroit auto company employees and retirees savings may be at risk as GMAC also deteriorates. See the article here. This would compound the tragedy.
The USA automakers have been on a downward spiral for years and this may be the end game. GM’s merger with Chrysler is apparently off for now. Detroit’s automakers are joining the long line at the oval office asking for money. Only $50 billion, nothing compared to AIG, right?
Well, we are in the process of nationalizing the banks, might as well do the auto makers too. Even the world’s best auto makers such as Toyota (TM) and Honda (HMC) are suffering severe sales decline. You wonder how General Motors, Ford and Chrysler can possibly survive?
As an aside, I read an article today from Forbes about how many Detroit auto company employees and retirees savings may be at risk as GMAC also deteriorates. See the article here. This would compound the tragedy.
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