As GM Cruises Toward Government Deadline, U.S. Automakers Must Learn to Deal With a Permanently Smaller Market
Contrarian Profits (May 26th, 2009) Writes:
General Motors Corp. (NYSE: GM) is closing in quickly on its June 1 deadline to finish overhauling its operations, or opt for Chapter 11 bankruptcy. Because that deadline is actually one week from yesterday (Monday), analysts and investors will be watching GM closely this week.
No matter which path GM chooses – conventional restructuring or bankruptcy – the U.S. Big Three of GM, Ford Motor Co. (NYSE: F) and Chrysler LLC will have to adjust to the U.S. auto market’s post-financial-crisis “new reality.” Automakers will sell only 10 million cars and trucks in the U.S. market this year, the worst in at least 30 decades – and roughly 38% less than the 16 million vehicles that were sold in the United States annually in recent years before the financial collapse caused an accompanying collapse in auto sales.
Part of the reason for the
...bad commercial real estate loans;, bank bailout plan, bank of america corp, Ben S, Ben S. Bernanke, cent;, central bank, Chrysler LLC, Citigroup, contrarian profits, crude oil, Deutsche Bank, Dow Jones, fed-funds, Federal Reserve System, Ford Motor Co, General Motors Corp, Germany, Goldman Sachs Group Inc, Government Deadline;, Gross Domestic Product, Hewlett-Packard Co., high-tech sector;, improvement giant;, Japan, Lennar Corp, Market Commentary, McDonald's Corp., Memorial Day, Mexico, Obama administration, pre-owned car sales;, real estate crisis, Russell 2000, S, Sears Holdings Corp, Standard and Poor's Ratings Services, stressed-tested banks;, The Home Depot Inc., The Wall Street Journal, Thomson Reuters PLC, Timothy F. Geithner, United Kingdom, United States, Us Federal Reserve, Us Treasury, USD


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