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Obama: General Motors and Chrysler – Gone in 60 Days March 30, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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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.

Main Site Link: Screambucket.com


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10 Issues That Are Crippling the Auto Industry March 18, 2009

Posted by aetiusromulous in Commentary, Economics, news, politics, Video, YouTube.
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A Handicappers Guide to Betting on Big Auto

 1) Market Meltdown

        Even the best of the best are hurting because there just isn’t the demand there was in the past. All automakers are hurting.

2) Market Demographics

        The Baby Boomers fueled the era of huge Auto, and they are very quickly moving out of the market for cars (Hearse demand may rise however)

3) Business Model

        Huge volumes of extremely expensive products demand massive credit for consumers to make purchases. Worse, the ancient “new model every year” plan has become unsustainable, causing as it does incredible investments in R&D and annual retooling of complex assembly plants.

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General Motors : Will Not Survive The Ides of March March 6, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Dead Auto Maker Prepares For The End

World braces for psychological tipping point.

End of an era in more ways than one.

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Auto Industry In All Out Free Fall March 3, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Suppliers Collapse Ahead of Former Auto Giants

Fighting breaks out like Shithawks on a french fry

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