At the time of this post GM and Chrysler are still optimistic that Bush and the Treasury Department will bail them out. I’m going out on a limb here maybe, but I think it is too late.
Hardly anyone is buying from these companies now due to all the negative publicity. The massive outflows of money continue with almost nothing coming in. A bailout will only create more scraps to fight over at tax payer expense. Consider:
I take no pleasure in this. I own property in Michigan. It is unfortunate that both management and unions were blind to the gathering storm, now the wolf is at the door.
Hardly anyone is buying from these companies now due to all the negative publicity. The massive outflows of money continue with almost nothing coming in. A bailout will only create more scraps to fight over at tax payer expense. Consider:
- Potential customers will wonder how long their warranties would be good
- What about resale value?
- How will the cars be serviced with dealerships closing?
- Most importantly, even the best car companies, such as Toyota and Honda, are suffering severe sales declines. The recession is forecast to last at least through 2009
I take no pleasure in this. I own property in Michigan. It is unfortunate that both management and unions were blind to the gathering storm, now the wolf is at the door.
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