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New York - Wall Street Journal: GM Will Go Bankrupt Soon If No U.S. Bailout |
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Athough the two giants dismiss the notion, analysts and investors have begun to question whether one of the companies could be forced to seek bankruptcy protection, The Journal said.
If such a move were necessary, it could set off a chain reaction throughout the U.S. auto industry which would choke off parts supplies to Asian and European car makers while damaging thousands of local car dealers, said the Journal.
Further, it could also serve to stir up a storm for the federal government, whose pension-guarantee program would be swamped by the addition of hundreds of thousands of retirees.
Meanwhile, citing unidentified sources, Bloomberg News reported that General Motors has asked the Treasury Department for financial aid to help complete the merger.
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Read Comments (5) — Post Yours »
1
Oct 27, 2008 at 12:15 PM authenticSatmar Says:
The unions killed GM by making America cars unaffordable. Now they are paying the price. Let the company fail.
As an aside, if I don't get a gov't bailout then I will go bankrupt too.
2
Oct 27, 2008 at 12:39 PM Anonymous Says:
The primary issue which caused the downfall was GM's lack of planning. Planing is a most vital factor for an auto company to succeed in any and every of its endevours, all auto companies must assess and compile a most complete and strategic assetion of the auto industry makeup as an entity, and how it will and may be seen in the future, some questions that must be proposed by the planners must be, What if there is a recession? What if fuel prices sky rocket? There are so many possible questions that must be contemplated before the auto company can finalize its strategies. If fuel prices go up, an average auto consumer will most probably look at purchasing a car which is more fuel efficient, meaning that if the company has many SUV’s in stock, they got a huge problem. If the U.S. economy hits a recession which seems extremely likely at this time, then consumers will be looking at basic and lower tier vehicles, meaning that if the company has excessive amounts of luxury vehicles, its going to have to drastically lower the prices.
3
Oct 27, 2008 at 01:48 PM Anonymous Says:
A bailout dos not make sense here. The federal government did the bailoit to rescue the credit trust in the country.
4
Oct 27, 2008 at 02:39 PM Anonymous Says:
I agree that its a lack of planning in preemtive times on GMs behalf.
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Oct 27, 2008 at 02:33 PM canadian Says:
the americans did it once before with chrysler or did everybody forget the profite the government made from that bailout??????