The White House raises a controlled bankruptcy of one of the big three automakers: General Motors, Ford or Chrysler
| Date: December 18, 2008 | Source: Economic @ 21 |
| Category: Economy | |
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Loading ... The White House raises bankruptcy controlled the major automobile companies in the country as a way to save the industry, mired in a severe crisis due to the drastic drop in sales.
This decision would be serious consequences for the U.S. economy and a strong impact on employment. I leave the original text published by Reuters , which is priceless:
In his daily briefing, the White House spokeswoman, Dana Perino, said "let's do something" because the government wants to avoid a "chaotic collapse" of the automobile.
U.S. President George W. Bush was expressed in similar terms when during a speech today at the American Enterprise Institute said he was concerned about an "uncontrolled collapse" of the automakers.
Bush said that the average American "would really damaged" by the fall of the manufacturer and also added that "I have an obligation to my successor. Do not think it good policy to throw a crisis" in its first day of work.
Meanwhile, Perino said the White House is "very close" to reaching a decision on granting financial aid to the automakers but declined to be more specific.
It is the first time the Bush administration publicly acknowledged he is considering the failure of one or more of Detroit's Big Three (General Motors, Ford and Chrysler) despite warnings that the closure of one of them cause serious economic losses and labor.
The words of Bush and Perino came a day after Chrysler announced it will stop producing vehicles in North America for a month, from tomorrow until January 19 as a result of falling demand for their products.
Chrysler's decision will cause the break total 30 production (from assembly plants to factories for engines, transmissions and printing) the manufacturer has in the United States (22), Mexico (5) and Canada (3).
The second U.S. automaker, Ford, which is in better financial shape than GM and Chrysler also said that for three weeks 10 of its 12 assembly plants in North America will stop its activities to extend the traditional one week Christmas vacation.
In early November, a study said the U.S. lost 3 million jobs if the Detroit Big Three cease operations.
If only one of the three disappeared job losses would total 2.4 million people in 2009 and 125,000 million dollars economic. In 2011, job losses would be reduced to 1 million.
Here are some other media related news:
- Bush warns that automakers will not help if you "can survive long term."
- Car sales sink 26% in Europe in November, the biggest drop since 1999.
¿Do you think that the Bush administration may be running out of resources to draw from the crisis in your country?
Can you think of that other measures could be applied in the automotive sector as alternatives to bankruptcy? Some kind of intervention, incentives to force mergers?
What other consequences could cause the collapse of one of the automotive empires?
December 20, 2008 at 15:01
[...] U.S. government came to consider a controlled bankruptcy of one of the big three automakers, General Motors, Ford or Chrysler, and finally decided to inject 12,500 million to try to save [...]