NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS   RESOURCES  
Small Claims Guide   Class Actions   Lemon Laws   FAQ   Newsletters  
Bookmark and Share


Complain about a product or service

Automotive    Education    Employment    Electronics    Family    Finance    Health    Homeowners    Insurance    Pets    Shopping    Travel     Print This     Email This    



NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

Time May Be Running Short for U.S. Carmakers

GM, Chrysler execs beg for bailout money to avoid bankruptcy




Advertisement



By Mark Huffman
ConsumerAffairs.com

November 6, 2008


Saab Story II: Dutch Ditch Saab Deal
Saab Story: Swedish Carmaker Walks Away from GM Deal
GM, Chrysler Hope Incentives Will Boost Sagging Sales
Auto Bailout Chief: GM's CEO Had To Go
Taxpayers Unlikely To Recover Full Auto Industry Investment
---
More about Auto Sales ...

General Motors and Chrysler, both of whom were struggling before September's credit seize-up, are desperately trying to merge to avoid bankruptcy, but say they need help from the U.S. Government.

Executives from the firms are eyeing some of the $700 billion Congress approved for a bailout of banks, but so far there hasn't been much progress on a plan to offer the carmakers a lifeline. Former Treasury Secretary Roger Altman, who serves as an advisor to GM, has publicly warned that time may be running out.

In an interview with Bloomberg News, Altman said G.M. has little time left to head off a collapse, which he said would be very severe for the U.S. economy. He also said it would be a tough way for a new administration to take office.

President-elect Barack Obama has voiced support for a deal to save G.M. and Chrysler. In fact, while campaigning last week he said helping the auto industry would be one of his administration's top priorities. Some, however, wonder whether the carmakers can hang on until January.

Members of the Michigan Congressional Delegation have asked the Treasury Department and Federal Reserve to use their broad regulatory authority, including the powers granted to them by the Emergency Economic Stabilization Act, to take the necessary steps to promote liquidity in the U.S. auto industry in order to protect this critical sector of the economy.

"The domestic automobile manufacturers face the most difficult conditions they have faced in decades," said Rep. John D. Dingell (D-MI). "We need to do something to help unfreeze the credit markets for that industry, as well as all others."

The most recent car sales figures add new urgency to the issue. U.S. car and light truck sales fell by 32 percent in October, recording the lowest monthly sales since January 1991. G.M. led the sales decline, with sales off a staggering 45 percent. The nation's largest carmaker sold only 166,744 vehicles for the month.

"The market has been shrinking for three years, but in October we saw a dramatic decline for the industry and GM," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. " We are obviously disappointed in our results which reflect a difficult comparison with a strong year-ago October performance. More importantly, it also reflects an unprecedented credit crunch that is dramatically impacting the entire U.S. economy – from the housing market to big and small companies to banks to family run businesses. The credit freeze has also had a very negative impact on consumers' confidence and their purchase behavior across America."

G.M.'s dismal October sales performance was only slightly worse than potential merger partner Chrysler, which saw sales plunge 35 percent. Ford sales were off 30 percent and even Toyota suffered a 23 percent sales decline.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!

Follow us on Twitter.





CONSUMER NEWS

SAFETY RECALLS

Back to the top |

Advertisement


Custom Search
AUTOMOTIVE
• Dealers
• Manufacturers
• Service
• Extended Warranties
• Lemon Laws
• Recalls
• Tires
• Transporters

FAMILY
• Aging
• Children, Parenting
• Recalls
• Dating
• Education
• Entertainment
• Pets
• Weddings
FINANCE
• Annuities
• Banks
• Credit Cards
• Debt Collection
• Debt Counseling
• Insurance
• Investing
• Loans
• Mortgages
• Payday Loans
• Student Loans
• Tax Prep

HEALTH
• Doctors
• Drugs, Pharmacies
• Health Clubs
• Hearing Care
• Hospitals
• Nursing Homes
• Nutrition, Diets
• Vision Care
• Weight Loss
HOUSE & HOME
• Appliances
• Cookware
• Furniture
• Home Improvements
• Lawn & Garden
• Movers
• Pools & Spas
• Realtors, Rental Agents
• Recalls
• Utilities

ELECTRONICS
• Cable TV/DBS
• Cameras
• Cell Phones
• Computers
• Home Electronics
• Internet Access
• Local Phone Service
• Long Distance
• VoIP
SHOPPING
• In-Home
• Online
• Retail Stores
• Sporting Goods
• Supermarkets
• Telemarketers

TRAVEL
• Airlines
• Bus Lines
• Car Rental
• Cruises
• Hotels
• Travel Agents
• Trains

RESOURCES
• Class Actions
• Complaint Form
• Small Claims Guide
• Lemon Laws
CONSUMER NEWS
• Latest News
• Automotive
• Telecom
• Financial
• Health
• Homeowners
• Scams
• Seniors
• Travel
• More ...

RECALLS
• Automotive
• Children's Products
• Drugs
• Food
• Household Products
• Sporting Goods

ABOUT US
• FAQ
• Privacy Policy
• Advertise With Us
• Newsroom
• Syndication
• Terms of Use

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2010 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.