Nowadays talk of the economy can bring sadness among individuals – and for good reason. Countless people have been left without a job. It has definitely affected the automotive industry.
People just don’t seem to want to purchase vehicles.
Who could blame them?
With the cost of living and gas prices slowly going back up, nobody wants to pay thousands of dollars for an automobile.
Unfortunately this spells disaster for automotive companies such as General Motors and Chrysler. According to reports on MSNBC.com, executives at both GM and Chrysler are desperately trying to figure out how to restore their failing businesses. On Monday, President Barack Obama announced that the plans for turnaround that both companies presented to Congress wasn’t exactly up to par. One can only hope they come up with something or else both corporations could be in for bankruptcy.
The President gave Chrysler funds for 30 days while GM got 60 days worth of financing to fix its turnaround plan. Generally businesses try to avoid bankruptcy, but it may be unavoidable.
Apparently some analysts believe that it may be the most likely option.
“I never thought I’d hear myself say a GM bankruptcy is likely, but I’m saying it now,” said John Wolkonowicz, a senior auto industry analyst with IHS Global Insight. “I think the list of requirements that the government is giving GM means a structured, quickie bankruptcy is almost assured because I don’t think they can accomplish what the government wants them to get done in 60 days.”
Whatever the case, one thing is certain – our economy is unquestionable an embarrassment.
Jay Christie for the Editorial Board.