As the GM stock sinks to 53 year lows, the company is battling
- A slowing economy
- Falling consumer confidence
- High oil prices
- Falling demand for its SUVs and pickups
- A tighter credit market
- An underfunded pension fund
- Rising healthcare liabilities and costs
As the US economy slows, even the Japanese Car manufacturers ( Toyota, Honda & Nissan) are having a hard time. Yesterday, there were rumours that Chrysler may file for bankruptcy. The company strongly denied this.
If unemployment figures worsen, the combination could be disastrous for the US Auto industry.
Will the Authorities have to step in with a bailout package????
The FED did it for Countrywide Financial and Bear Stearns.
IS GM TOO BIG TO FAIL ????