America's motor giants face uncertain future
Leaders of America’s big three motor
giants – GM, Chrysler and Ford – headed to Washington earlier this
month to see the same sort of bale-out that the US government had
given to financial institutions.
Financial analysts reckon that – without massive investment GM will run out of cash early in 2009, with Chrysler, then Ford, not far behind.
Nearing the end of the road? Chrysler has been achieving some success in the UK with its imposing 300C.
Perhaps unsurprisingly the motor manufacturers went away empty-handed, although there is a follow up meeting with Congress planned for December 12.
It is difficult to see how the US government could hand over the billions the motor giants are demanding. The US sub-prime mortgage debacle has rocked the US economy more than others that have been caught out by this tale of greed.
Ironically the financial sector, where the sub-prime scandal began, is the one to be propped up – while those suffering the fall-out, such as the motor manufacturers, are potentially left to sink.
But, where would the hand-outs end? As one commentator said, do you offer to bale out the local plumber and electrician as well?
The collapse of the indigenous motor industry could have massive repercussions for the US economy.
One forecast predicts it could result in the loss of a staggering 2.5 million jobs.
Financial analysts reckon that – without massive investment GM will run out of cash early in 2009, with Chrysler, then Ford, not far behind.
Nearing the end of the road? Chrysler has been achieving some success in the UK with its imposing 300C.
Perhaps unsurprisingly the motor manufacturers went away empty-handed, although there is a follow up meeting with Congress planned for December 12.
It is difficult to see how the US government could hand over the billions the motor giants are demanding. The US sub-prime mortgage debacle has rocked the US economy more than others that have been caught out by this tale of greed.
Ironically the financial sector, where the sub-prime scandal began, is the one to be propped up – while those suffering the fall-out, such as the motor manufacturers, are potentially left to sink.
But, where would the hand-outs end? As one commentator said, do you offer to bale out the local plumber and electrician as well?
The collapse of the indigenous motor industry could have massive repercussions for the US economy.
One forecast predicts it could result in the loss of a staggering 2.5 million jobs.