THE SPINE OCTOBER 26, 2008
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Here are the headlines on page 20 of Friday's FT.
"GM and Chrysler make deeper cuts"
"Daimler, Fiat and Renault in stark warnings"
"Ford considers selling part of Mazda stake to raise cash"
"Chrysler lost nearly $490m in its core carmaking business"
"Hyundai profits cut by strike and fall in global demand"
"Groups act to prevent suppliers' collapse"
This last headline means that no car maker lives alone. If the auto business is in trouble, its suppliers are also in trouble, actually many in much deeper trouble than the firms they supply. So VW, Porsche, Daimler are trying to help get financing for them. One firm employing 1,600 people in Bavaria was denying a loan to finance its company's business through December. The deniers were several banks and the very troubled state lender, Bayern LB.
I know that this may be another matter: But where is the European Community in this disaster. No where. It's a phantom.
2 comments
Read the Times piece- www.nytimes.com/.../26jane.html
on GM- this is astounding on so many levels- were these the only people on the planet besides Bush’s cabinet that thought cheap gas was going to last forever? And now, thousands of people’s lives and jobs are at risk, many thousands if the company folds in this credit environment.
- shislandguy
October 27, 2008 at 12:38pm
Hate to tell you all, but gas is selling for $2.39 in my neighborhood. Somehow I kind of wonder if the auto companies have ganged up on the oil companies (and speculators) and gotten them to drive it down. Who knows, we may be back to under $2 a gallon soon! Then everyone will be back to buying those SUVs and pickups!!!
- WaltB
October 27, 2008 at 3:03pm