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If General Motors (GM) collapses, what would the condition be? A thought to this question brings the deadly feeling. Will the auto industry be the same or will it be able to recover from the massive loss. If Congress does not approve the auto aid for bail out of auto industry or delays the plan, its going to aggravate the deploring situation at a faster pace.News from automotive industry reveal that the company is headed towards bankruptcy at the rate of $2 billion/ month. General Motors Corporation that is the world's most powerful as well as largest corporation has facing the economic blues over the past months. Workers as well as management of the companies are joining hands to support the bail out of the auto industry.
Don't Let This Giant Auto Maker Die
If the auto aid is not provided to GM soon, there are going to be adverse situations and the downfall of auto industry would be completely impossible to handle. What happens if GM collapses. Some of the possible consequences (few of which we are are experiencing now) would be:
- Workers are amongst those who would suffer the most
- Suppliers & creditors will face the blow
- Heavy job losses
- Economic crisis would impact every industry related to auto
- Half the workers and dealerships
- Lower market share
What Has Congress In Store For The Auto Industry Next Week
It is now for the world to see what does Congress come up with to help the US automakers in the coming week. President George W. Bush has called on the lawmakers to put forth their plan by next week. According to auto news and market reports, GM needs auto aid between $20 billion & $40 billion, though the company has demanded a bridge loan of $10 billion to $12 billion so that it can make its payments for the bills. Lets see what does Congress ask in return from the auto industry while extending the auto aid to the Big 3 auto companies.
It is now for the world to see what does Congress come up with to help the US automakers in the coming week. President George W. Bush has called on the lawmakers to put forth their plan by next week. According to auto news and market reports, GM needs auto aid between $20 billion & $40 billion, though the company has demanded a bridge loan of $10 billion to $12 billion so that it can make its payments for the bills. Lets see what does Congress ask in return from the auto industry while extending the auto aid to the Big 3 auto companies.
1 comments:
My opinion is that letting the last three US autocompanies fail is unpatriotic.
But if these people working at carmaking plants will loose their jobs, it is extremely important that they will get unemployment money until they find a new job, not only to support them, but most important to help the rest of the US economy. If so many people loose their income, they are not able to buy any more, and all other selling business will fall like dominos.
Unemployment money is totally important to prevent our economy diving deeper into trouble.
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