Here in Detroit, we have the big 3 … Ford, GM, and Chrysler.
Well, maybe no longer.
This morning the government passed judgment on this industry, which had been requesting capital to survive, as the credit markets, despite protestations to the contrary from various sources, is still frozen … and they (and all other businesses) need capital (and credit) to survive.
The government has said (basically) … its Chapter 11 (or 7) for you. Their exact words appear to be
The administration’s auto team announced the departure of Mr. Wagoner on Sunday. In a summary of its findings, the task force added that it doesn’t believe Chrysler is viable as a stand-alone company and suggested that the best chance for success for both GM and Chrysler “may well require utilizing the bankruptcy code in a quick and surgical way.”
This will have some interesting impacts here in Michigan.