As if the congress denying the Big Auto a stimulus package earlier was not bad enough, this might happen again a second time. GM, Chrysler and Ford are looking towards the Congress for a $25 billion stimulus package in order to keep the production and R&D alive. The concern is very real as without technological edge, the US auto manufacturers might be rolling out empty shells after 5 years and most of them might have to close shop post December. In fact, as per Big Auto, the real requirement is as much as $40 billion and even a stimulus package will not be enough.
If nothing else works, then it’s very likely that the 3 companies might have to merge. If that happens, then they may not actually need the Congress anymore for any financial assistance as the combined entity would be more than eligible for a loan from the bank to meet all requirements. I won’t be amazed. There are stranger things in Heaven and Earth than we can imagine.
4 comments:
hmm. nice to hear if the 3 merge. Then the growth of the B3 will accelerate the growth of the country also to some extent. Even though this is likely to happen when the crows fly upside down, consumers can wait for this to happen so as to get better products in the market. some healthy once. And moreover Rahul, the total expectation is not 40, its $34b. Dont make the US senate feel more heavy by increasing 6b., So sad of the B3.let them be survived... :)
haha...true...Rakesh the Senate is talking about $34 billion, but the GM CEO is looking at an approximate estimate of $40 billion.
As per the latest news the Big 3 are expecting a support of 34 bn and the worst hit amongst these is Chrysler. Well the story does not end here as the present 34bn is not sufficient for these companies. They are looking for a bigger stimulus package once obama takes over.. so don't be surprised if it crosses over 40bn the next time!
Hii Meera,
ur absolutely right. It might go up as high as $40 Billion but I am not sure whether the Fed will actually make such an amount available for the Big Auto. GM will be neck deep in shit post December if they dont get some money quick.
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