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The beginning of the end of the car industry? November 20, 2008

Posted by neoavatara in Politics.
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Congress Autos

The support for a bailout for the Detroit Big Three automakers is so weak, the Senate is not even going to bother to have a debate on it.

GM has already stated that they may not have enough cash on hand to last out the year.  Chrysler may soon follow.  Ford has its own problems, but cash isn’t one of them; they have plenty of credit lines available at this time.

GM bankruptcy is the first hurdle…and it may come sooner than many expect.  For GM, this is plus/minus event.  The minus is, well, you never want to be in bankruptcy. The plus, however, is that they can try to wipe out other creditors and contracts; most importantly, UAW contracts which in this day and age don’t make a lot of sense.

We are seeing the final transformation of the manufacturing industry in America.  It is going to be a bumpy ride.

NEW!!!

John Dingle has lost his chairmanship House Energy and Commerce Committee to Rep. Waxman, an environmental nut.  More bad news for the Big three (Though, I have never been a fan of Dingell’s).

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