"hk" wrote in message
. ..


Just how long do you think the US automakers will last, not as corporate
entities or shells, but as actual companies building actual products in
the United States?

GM is trading at about $11. Ford reported losses yesterday of $9 billion
for the quarter. Only god knows what Chrysler's real numbers are.

Which one do you think will fold first?


Couple of comments.

First, US automakers build what people want to buy. Up to a year or so ago
people in the US still wanted mega sized SUV's and heavy duty trucks. Take
a look around. There's a gazillion of 'em still pounding the highway.

Now, because of an extraordinary rise in fuel costs, people aren't buying as
many anymore. GM and Ford have cut back production big time of the big
vehicles and trucks and are focusing on small, fuel efficient autos. Again
.... it's market driven.

The sales slump is unique to the USA. Both GM and Ford are still doing
very well in overseas sales.
They are also diversified companies, with many other revenue generating
divisions. Both still operate credit companies, etc.
Ford and GM aren't in any immediate danger. Earnings may slump for a
while, but they will stay in business.

Not sure about Chrysler though. They are now owned (majority) by a private
investment group. If it doesn't turn around they are likely to pull the
plug, I think.

Eisboch