The Big 3: GM and Chrysler need loan, Ford can survive

They are known as “The Big 3” in the auto industry and General Motors, Chrysler and Ford are looking at possible bankruptcy even if they get the full $34 billion in emergency loans.

GM and Chrysler are said to need this loan, although Ford say they can survive without loans as long as the other two don’t fold and disrupt shared supply chains.

The automakers wanted $34 billion but House Speaker Nancy Pelosi has managed to reach just half of this value on a temporary loan until the Obama administration takes office. How much this will help is anyone’s guess but some analysts believe it may be too late to help them.

It looks like the economic downturn is accelerating and things are getting worse by the day, GM has even said that it could go be the end of this month. The big 3 three have a massive workforce and with U.S. job losses in November around 533,000, the future does not look good. What will the future bring for the auto industry and what would it look like without GM? Hit the read link below for more information.

Source: Read