| Magnus |
02-17-2009 09:03 AM |
Who is going to tank? GM or Chrysler?
I don't see a Big 3 for much longer, so who do you think is going to sink??
Chrysler is private and just engaged in a strategic partnership with Fiat in Europe, probably to help bring that brand to North America. But they don't have the same depth of vehicles or fleet vehicles as say Ford or GM.
GM said they are considering chapter 11 as an option, probably to hold off creditors and get some breathing room. If that happens, I can see them using that as leverage to the unions and basically say, it's our way or no way, so the unions will have to decide , do they want some jobs and accept massive concessions or no jobs, kiss your pensions and packages good bye.
Green and fuel efficient cars are not enough right now, they need to build less cars, sell more cars and make cars people want to buy with the same dependability that Euro and Japanese automakers are known for.
Freeing up credit may help some but the media keeps letting you know how fuct you are financially, so most people are scared of big purchases.
It will be interesting to see what the two automakers release today as it is the deadline for them to submit their detailed restructuring plans, in order to get a few more billion in bail-out money so they can keep their sinking ships afloat a little longer.
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