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U.S. Automotive Industry Recession Help

The auto industry is the pride of the U.S. economy. But the economic crisis, the three major manufacturers to crumble – and numerous suppliers to do so. Hundreds of thousands of jobs are at risk. We shows how Washington wants to help the industry.
Paragraphs loss, obsolete models, hardly Perspectives: The big three U.S. car makers General Motors, Ford and Chrysler are on the precipice. Whether all this crisis is over, is questionable. GM and Chrysler are only still alive because the U.S. government with billions of taxpayer aushilft. In February, the sales for some manufacturers to more than half. Even meaningful discounts were the Americans in the economic crisis not to animate a car.

But not only are the manufacturers of the market crisis affected. Above all, the suppliers suffer from the weakness of carmakers – and come in a series of distress. According to a study by management consulting A.T. Kearney threatens more than half of U.S. auto suppliers in this year’s bankruptcy. But it has also to U.S. President Barack Obama slightly in the quiver. We shows how the U.S. government, the domestic auto industry wants to save – and what timetable it has.

“Big Three” – mourning in Detroit
GM has $ 13.4 billion in state Notkrediten receive. Additional $ 2 billion, the first car maker had sought for March, will now be present but not required. With this waiver, the Group also its progress in the restructuring of proof – and therefore the chances of further support from the state increase.

GM CEO Rick Wagoner had already several times before a bankruptcy of the group warned, if the state is not later than the end of March new funds available. Until then, the car makers of the U.S. government to prove its viability. GM plans to clean up the world among other things, the elimination of 47,000 jobs, closing plants and the further separation of the Group brands.

The much smaller rival Chrysler, which has $ 4 billion has received calls for another 5 billion dollars from Washington. Ford has as yet no state aid is used.

Auto Task Force – rescuers in an emergency?
Obama originally wanted only a single car Tsar – but then it was like a whole team. Apart from Finance Minister Timothy Geithner is playing the New York financier Steven Rattner in the Auto Task Force plays a central role. Rattner is shared with the members of the Panel to decide whether and how the verge of bankruptcy following groups will be helped – and that by the end of March. Possible options are cheap loans from the government or a reorganization under creditor protection under Chapter 11 of U.S. bankruptcy law. Under discussion was a merger between GM and Chrysler. This consideration, however, is apparently off the table.

This entry was posted on Friday, March 20th, 2009 at 10:10 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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