A Look at the Autos on the Chopping Block

A Look at the Autos on the Chopping Block
1/16/2009 (Video MarketWatch)
Detroit's Big Three automakers are looking to downsize. WSJ's John Stoll talks about some of the brands that might be sold or scrapped, including the Hummer.

Motor city is the U.S.A.

Accord on U.S. help for automakers
GM and Chrysler are close to getting billions in stopgap aid to stay out of bankruptcy. Pelosi changes mind on key sticking point.
Motor city is the U.S.A.
It's not just about Detroit. The auto industry employs workers in every state - including Alaska and Hawaii. More than 2 million jobs - from manufacturing, to parts, to auto dealers - depend on carmakers for their pay.

Detroit's Big 3 Make Second Pitch to Congress and ask for $ 34 billion bailout.

Carmakers try to sell Congress on rescue for troubled US industry that could reach $34 billion

Detroit's Big 3 Make Second Pitch to Congress and ask for $ 34 billion bailout.
WASHINGTON (AP) -- U.S. automakers are returning to Congress for high-stakes hearings they hope will persuade skeptical lawmakers to save their troubled industry with $34 billion in emergency aid, but a top Senate Democrat wants to hand their problem to the Federal Reserve.
Two weeks after a botched attempt on Capitol Hill, repentant leaders of General Motors Corp., Ford Motor Co. and Chrysler LLC were appealing to the Senate Banking Committee on Thursday with three separate survival plans that include massive restructuring, the ditching of corporate jets and vows by CEOs to work for $1 a year.

Rumors circulating in the automotive press suggest that the companies may propose eliminating or selling off some brands (GM is widely expected to propose closing its Hummer, Pontiac, Saab, and Saturn divisions), renegotiate labor contracts to reduce costs, and cut executive pay.

It's remarkable

Today(Nov 6th) stock markets worldwide tumbled. The ECB cut rates, the Bank of England cut rates by 150 basis points and still the markets plunged. According to Yahoo Finance the 'retailers (except Wall Mart) reported steep sales declines in October', the hedge funds reported results going from bad to worse, jobless benefits on 25 years high and recession fears worlwide. But of course, the market is allways right, although it takes a while before people (or computer programs) begin to realize something is wrong. We have a credit crisis, it popped up more than a year ago in the real estate market. What is the second largest financed property most people have? A car of course. After months with record prices per barrel for oil and at the pump, and financial troubles everywhere, people look for cheaper cars, especially in the U.S. where people need a car. The big auto makers have simply failed to read the market signals and come up with cheaper and better alternatives. And now they are close to a bailout, because the public can't afford their products anymore. There is a credit crisis, frugality is trump for the moment, a recession is unavoidable. And it is very remarkable it takes so long to get through!
But it's NOT the end of the world, it's a perfect time for innovators.