Obama: General Motors and Chrysler – Gone in 60 Days

Obama, General Motors, and Chrysler each bought an extra sixty days before they must face the inevitable.

The inevitable is bankruptcy for all three.

Obama may not have caused the auto industry meltdown, and there is real argument whether the auto makers are to blame either, however who is to blame will be invisible to history, only the fact of catastrophic bankruptcy remaining on the record of each. All that remains for the moment is finding a suitable time for the wake.

The fact of the matter is that it is not auto industry inefficiency that needs fixing – if it were, model companies like Honda and Toyota would not be down 50% and falling. The economic environment that existed when automakers sold a historic 16 million units in North America is gone for good, Obama himself admitting a return to the age of easy credit is impossible now. With North American auto sales at nearly 8 million units and falling, and break even being 13+ million units, it defies common sense that GM and Chrysler will be able to craft a business plan that will see them overcome an economic death spiral, and outperform the Japanese by magnitudes at the same time.

Today, Obama did the scene set for the end, drawing a line in the sand legless and broken automakers have no way of crossing. General Motors and Chrysler – gone in 60 days.

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