Big Three May be Headed for Chapter 11

Americas las struggling industries are going banckrupt, what is left of Americas industrial base? not much.

General Motors Corp., Ford Motor Co. and Chrysler LLC may be forced into bankruptcy by slowing economies and dwindling U.S. auto sales, Standard & Poor's analyst Robert Schulz said today.

``Macro factors could overwhelm them at some point'' even with the three biggest U.S. automakers committed to turnarounds, Schulz said in a Bloomberg Television interview. S&P said yesterday it may cut GM and Ford debt deeper into junk on forecasts for 2009 auto demand falling to the lowest since 1992.

Even when hey got 25 billion dollars for bail out that is not enough for the big three to stay afloat.

This mean more jobs that will be lost in higher than regular income range, I guess the downgrading of wages in America is in full gear.

www.bloomberg.com...

Let's hope not. Many, many Americans consider the American automobile industry as a source of income.

"When the US sneezes, Detroit catches a cold."

Indeed.

From today's Detroit Free Press"

General Motors Corp. said in a statement this morning that it is not considering bankruptcy even as its shares drop to historic lows and fears about its liquidity continue to rise amid the global economic turmoil.

Meanwhile, GM and Ford watch their stock prices sink to new depths...




[edit on 10.10.2008 by ItsTheQuestion]

Well it will be a shame that they will have to fall for bankruptcy, but as with the financial institutions that claimed doing fine before they went bankrupt I see the auto industry doing the same.

I expect at least next week for them to come clean and declare banckrupcy.

The economic disaster in Michigan is especially indicative of the troubles in our nation.

Corporate arrogance. Union entitlement. Financiers' greed. Innovative stagnation. Crumbling infrastructure. And, of course -- corrupt politicians.

Thanks for the links, is truly despicable what is going on with this nation, losing the last staple of this nation that goes for the auto industry and the steel industry will be the last drop on the fall down of the nations last wealth builders.

Detroit has been downgraded slowly and steadily and nobody seems to care, they can bail out the darn financial institutions that are the ones that pay the whores in Washington but the industries that provided the wages that still manage to keep the middle class in place are forgotten.

The big three asked for 52 billion dollars, all the got is 25 but I bet the corrupted financial will get all the tax payer money that Paulson can print.