Two down, one to go? Will Ford follow GM and Chrysler into bankruptcy?
GM is expected to file for bankruptcy today, following Chrysler over the Chapter 11 cliff. Billions of dollars of taxpayer money couldn’t solve the giant car company’s problems.
Now, it is expected that the U.S. government will own almost three-quarters of the company. This appears to be a last resort. “My preference,” Obama said, “would have been to stay out of it completely,” according to a Reuters report on an interview on NBC.
So, how does it feel to become a GM stockholder? I doubt that taxpayers can expect to receive any dividend payments.
Chrysler was the first American carmaker to declare bankruptcy. About a month ago, it filed for Chapter 11 and sought rescue in the arms of Italian automaker Fiat. In a masterpiece of spin, Bob Nardelli, Chairman and CEO of Chrysler, said:
“This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages. It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution.”
Will Ford be the last U.S. automaker standing? Or, do you think it too will go over the bankruptcy cliff?
Will it all matter anyway? Do we really need a strong domestic auto industry?
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