Word: gm
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Dates: during 2000-2009
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...very difficult 2009, when car sales aren't expected to top the 11.8 million units sold this year. (In 2007, 16 million cars and light trucks were sold.) General Motor's Wagoner and Chrysler's Nardelli made it pretty clear that without a government bridge loan - $12 billion in GM's case, $7 or $8 billion for Chrysler - there isn't going to be a 2010 for these companies, at least not without a pit stop in bankruptcy. Chrysler ended its third quarter with $6.1 billion in cash - but it's burning through $1 billion a month. Without federal money...
...third quarter despite having burned through $7.7 billion in that period - half of which was tied to halting the production of F Series pickups because of slow sales. The company recently introduced a new version. Ford Credit, the company's finance arm, remains profitable because, unlike GM's 49%-owned bank, GMAC, it doesn't have a subprime mortgage business. On top of that, Ford can still draw on credit lines totaling $10.1 billion. "We are doing everything we can to create a relevant company for the long term," Mulally told the committee...
...everyone believes the situation is so dire or that the Democrats' efforts are so pure. Some observers speculate that GM, the weakest of the Big Three, can likely hold out until January. Still others say that even if GM doesn't make it, the fallout might not be all bad for the Democrats, who can blame the GOP for inaction without having to put more taxpayer money on the line. "If there's a bankruptcy between now and then, the spin would be that the Republicans let it happen," says Greg Valliere, chief political strategist at the Stanford Financial Group...
...There is no denying that the risks of letting GM fail are high. Economists warn that if it fails, GM is more likely to end up with Chapter 7 bankruptcy liquidation than Chapter 11 restructuring. Given the current credit crunch, the traditional bridge loans available to companies in Chapter 11 are all but impossible to obtain. And few consumers would be likely to buy a car - the sale of which depends on long-term warranties, service and parts - from a company in a bankruptcy reorganization. The Big Three and their affiliated suppliers account for 2% of the U.S. workforce...
...fallout of a single manufacturer like GM failing is huge because of the tightly knit web between manufacturers and suppliers," says Dave Cole, chairman of the Center for Automotive Research, an organization with ties to the industry. "Given the fragile state the supply base is in today, with a lot of them already in bankruptcy, it would likely take the entire industry down. Not because the other manufacturers would fail but because the suppliers would go down. We've been concerned about the cascade effect...