USA big two automakers will ruin

GM factory workers in the table hung up the slogan "leave our work"

The real crisis America GM headquarters (Figure) Exclusive: digital American president I see car (Figure)

Text / shedding thinker

USA big two automakers GM and Chrysler now walking on the edge of bankruptcy. Although they have been Bush issued $17400000000 in emergency loans. It has been two months to rely on these emergency loans to operate, but their cash will soon begin to run out, can not support how long. The harsh conditions short-term assistance was provided by the government: they must solve the problem of architecture. These problems include the wage level higher than competitors, as well as pay retiree pension and health-care issues, automobile manufacturers must reluctantly restructuring in March next year, if 31 days is not effective, it must be returned to aid. Today they give survival plan, but also more rescue funds from the government. If the government does not agree, they are doomed to ruin it.

Have a look first proposed the two companies plan to survive the essentials

General MotorsTo USA government provide an additional $16600000000 rescue fund, plus the original $13400000000, $30000000000; GM proposed to accelerate the speed of weight reduction, more than in December when the plan. These include worldwide this year to reduce the 47000 hourly and salaried employees. In 2012 shut down 14 factories, more than originally planned 5 home; for Hummer (Hummer), SAAB to find a buyer, let the Pontiac as niche brands; if no alternative plan, in 2011 to stop the Saturn brand business; save $1200000000 in employee consumption in europe.

ChryslerThe company had previously been American government loan of $4000000000, but that still need $5000000000; layoffs of 3000 people; and three car models ( Chrysler Aspen, DodgeDurangoChreslerPT cruiser) production; fixed costs by $700000000 in 2009. Through and Fiat alliance in 2009 to save $6900000000 in 2016. And the supplier to supply 3% reduction since April 1st to sell $300000000 in assets. Factory production capacity to 100000 cars; the electric technology development low fuel consumption and low emission car.

The two companies to avoid bankruptcy, to persuade the government to re injection of life. Whether this will continue to provide rescue loan to them, in the latest opinion polls in 64% of the people think that the government shouldn't put taxpayer money to give the car manufacturers. The Wall Street Journal column "gossip Wall Street" also published a paper entitled "from Detroit to ensure America" articles (Detroit is American car city. The big three automakers and many auto parts suppliers in the). Passing information to Obama said to American economy does not mean to Purdue beings, but to end the chrysanthemums after the Double Ninth Festival approach death. Now the Detroit provides a good model. Auto City dysfunctional has for decades. He took Detroit to show taxpayers how to truly reinvigorate USA.

Shedding thinker think America automobile industry is an important part of USA economy. I believe many literate Americans recognize this point. If the bankruptcy American automobile industry, it will be a very radical decisions. Taxpayers may finally lost more. Let the automobile industry will lead to bankruptcy, the gross domestic product (GDP) growth rate decreased 1%. In addition will jointly make at least 1000000 people unemployed. The government should pay unemployment benefits is a big, calculated on a per person $500 a month. The government every month to $500000000 in unemployment. But unemployment is dog meat again, no interest, now to the automobile industry bailout is actually a loan. They have also, but also interest. Or save for the best. In addition to think the government unemployment benefits is the wool in the sheep, is the people's tax money. If the auto industry bankruptcy, eventually everyone will share the consequences of the bankruptcy. If the auto industry collapse, the collapse is not only the three, with the auto parts industry, automobile sales industry, the local restaurants, shops with the collapse. Automobile industry is a high tax and state government. Last year the state government of Michigan almost announced closed. At the last moment by increasing people tax agreement, only to allow the government to tide over the difficulties. Recently the state government has slashed spending, much to the work of the government workers. If the big three down, the whole area of Detroit, the state of Michigan and even America central situation could not imagine. The government money, America automobile industry is like a drowning man a life buoy, although the drowning man is weak but still have the hope, otherwise it will soon drowned. GM chief also said, if the bankruptcy, need the government to increase financial aid to avoid bankruptcy more than 500 to $60000000000. If you add in a foreign General Company factory may propose to foreign government funding requirements, maintain the General Company operating in bankruptcy protection under the cost may be close to $1 billions of most. Shedding thinker think American government finally had to save the auto industry.

But the government's bail-out is limited. Not a but again in three. The big two auto companies if once again get money from the government, although in a life, you have to rely on their own to fight the last strength to swim ashore. General Company that within two years can be profitable, is expected in 2017 to pay off all loans. But the cars and trucks on a quarterly or annual sales reached 11500000 to 12000000 vehicles, the General Company can achieve balance of profit and loss. Now the economic recession, financial institutions are unwilling to loan, loan purchase a car by Americans in general, and buy a house as objectively caused a decrease in the number of buy. At the same time, the financial crisis make people Wujin purse gone, the car is a big expense. In the past some people often change, keep the new car, used car dealers to sell. Now the province to province. The old car can then use. GM will still face difficult to sell, and one of the most unfavorable situation is that although Detroit officials and representatives of the trade unions all night negotiations, GM has not with the United Auto Workers Union (United Auto Workers) and bond holders in the lower reach of labor into the key and a $47000000000 reduction in the debt burden problem. Without this agreement, its architecture is still in existence, the survival plan is very difficult to implement. Chrysler lucky, the United Auto Workers, dealers, suppliers and second lien lenders have made concessions, or has basically agreed to make concessions, there is some hope. General the road ahead is not so easy, bankruptcy or difficult to disperse clouds.