The End of the Big 3?
July 25, 2008 6:11 AM Subscribe
Will the government allow Ford and GM to fail?
posted by billysumday to travel & transportation (27 answers total) 2 users marked this as a favorite
I know that there's no real answer to that question until it happens, but it seems more and more likely that at some point, the government will either have to actively bail out with a cash infusion at least one of the big automakers, or they will have to actively stand by and let one of them (most likely - Ford) implode. Ford's recent announcement of over $8 billion in losses in the last quarter alone does little to strike confidence in car buyers, investors, and manufacturers. Is it in the government's interest to have the Big 3 around anymore, or does it not particularly care one way or the other? Once upon a time they were bellweathers of the economy and a symbol of American dominance - I feel that that is no longer the case. It would be something to see a company like Ford have a fire sale and shut down its plants.
I find the decline of American automaking fascinating, and am personally hoping for a resurgence of quality and profitability, and a rise in efficiency, from American carmakers.
This question is a bit chatty, yes, but I'm also looking for specific or expert info here - what is the precedent for letting a company of this stature fail? Is it possible? Is it imminent? Would GM and Ford merge? What is the future American automaking?