We've Bought the Banks.......Now the Car Industry?

  oresome 15:09 16 Nov 08
Locked

GM and Ford are running out of money at an alarming rate. If they do, what are the chances of survival for their European offshoots?

The problem's real, Europe’s three big trade insurance groups have started to refuse credit insurance to Ford and GM’s suppliers, which may lead some suppliers to demand cash up front.

click here

Once we've established a bottomless pit of money, we can invite Red Rob back to organise the production lines and remove all remaining traces of reality.

  interzone55 15:53 16 Nov 08

Are you a US citizen?

If not you're not buying into either company.

GM & Ford are both US owned corporations, they are also haemorrhaging cash at an alarming rate. GM is losing $1bn a month and Ford is losing about $600mn a month. If this continues GM will run out of money by about June 09 & Ford will follow about 6 months later.

No government would allow a company of this size go belly up, job loses would be in the millions...

  oresome 16:17 16 Nov 08

No, I'm not a US citizen, I'm a European.

But then, European leaders will consider aid to stop the social damage.

  al's left peg 17:23 16 Nov 08

Our Govt allowed the Rover group to go under so, I would imagine they would allow any other manufacture to follow. The problem being in this country is our Govt have over the years poured massive amounts of money into foreign companies in the form of grants. Nissan, Honda, Toyota and even BMW (builders of the new Mini) have already been given the British taxpayers money. I would imagine both Ford and GM (Vauxhall) in this country have all been given large cash incentives to keep jobs in this country. It's not a bad thing in my idea, but I still can't get my head round why they allowed Rover to fail.

  walesrob 17:36 16 Nov 08

Rover failed for a number of reasons: falling market share, outdated models, lack of investment and expensive prices. Ford and GM are car makers on a much larger scale, and would be far more deserving of government intervention should they fail. If Rover had become a niche car maker much sooner, it would probably be still around.

  Noldi 17:38 16 Nov 08

BMW kept the best thing out of the Rover group.

Noldi

  laurie53 21:21 16 Nov 08

Rover, and most of the rest of the UK's car and engineering manufacturing businesses, failed because they priced themselves out of the market.

  Quickbeam 07:30 17 Nov 08

"UK's car and engineering manufacturing businesses, failed because they priced themselves out of the market."

I thought it was because they made crap cars...
My first car was a 3 year old Hillman Imp, I scrapped it at 5 years old and thought that that was normal. My father had British company cars most of his working life that were plagued with various manufacturing faults and were worn out by 80,000 miles, we thought was normal at the time. In 1973 our neigbour bought a new Ford Cortina mk3 that had major corrosion problems with big holes in the wings, sills & floor inside a year, he decided that shouldn't be normal and bought a new Volvo before the year was up... That's when and why we stopped buying British cars.

  laurie53 08:39 17 Nov 08

Lots of people made crap cars, but they charged crap prices so people knew what they were getting.

The UK charged premium prices for crap cars and people, like you and your neighbour, got wise to it.

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