American auto industry under crisis fire

By: Aja Moskisa

The American Treasury commended the Chrysler group to get ready to declared bankruptcy following the analysis that took place last week .This happened in spite of the Chrysler intention to act on a take over from the Italian brand Fiat. After yesterdays events and presidents Obama declaration the Chrysler business is no longer in danger. It seems that both Chrysler and General Motors will receive financial aid from the American government in order to avoid bankruptcy. The money will come under the form of credits with subvention interest payable in a very long term.
General motors will receive 5 billion dollars in order to ensure the necessary liquidities for he next period and it will continuous the program of restructure , and Chrysler will have at hand 500 million dollars that allowed it to accelerate the negotiations with Fiat confirmed by the American president.
While General motors tries this period to get rid of all sectors without profits, Chrysler finished the negotiations with the Italians for a new line of cheap and profitable cars. The aid promised to these two companies took the financial analysts by surprise in the context in which the president Obama suggested the two auto giants to declare bankruptcy in order to build up new solid businesses in Detroit based upon the performance active they own.
GM and Chrysler cashed since December 2008 till now financial aids of 17, 4 billion dollars. GM announced it will close 13 factories from the 34 it has .Almost half of the auto dealers representatives will be closed their number reaching around 3.605 units. Also General motors are going to lay off 8000 employees and by these the number of its US employees will arrive at 40.000 in 2010.
GM committed itself that till June 1st will present the American authorities a concrete and coherent plan or restructure in order to avoid bankruptcy. If the production will be restructured the financial help from the American government will help them cross over the storm. Besides Pontiac, GM will renounce at the SAAB, Saturn and Hummer until the end of the year selling the Opel brand being also in question.

Article Directory:

| More

Want to read free articles, make it easy and choose Free magazines from our catalogue.

Please Rate this Article


Not yet Rated

Click the XML Icon Above to Receive Industry Articles Articles Via RSS!

Powered by Article Dashboard