Auto Industry, Whats Next?

U.S. Expected to Give More Financing to Automakers New York Times — The Obama administration will probably extend more short-term aid to General Motors and Chrysler on Monday, but will impose a strict deadline for bondholders and union workers to make concessions that would help the ailing automakers become viable businesses and avert bankruptcy. President Obama’s auto task force is expected to say that despite its recommendation of more federal assistance for G.M. and Chrysler, bankruptcy could still be a possibility for either company, according to people close to the discussions. click to read complete article

Auto sales seen plunging again in March Reuters — Auto sales likely slogged at the weakest monthly rates in more than 27 years in March and show few signs of life, adding to the pressure on General Motors Corp, Chrysler and Ford Motor Co. The Detroit-based automakers and the three top-selling foreign carmakers all are expected to post severe U.S. sales declines in March from a year earlier with the nation engulfed in a deep recession. click to read complete article

GM CEO Meets U.S. Officials Washington Post — With the White House set to announce more financial aid for General Motors and Chrysler on Monday, the Obama administration's automotive task force met yesterday, and GM chief executive G. Richard Wagoner Jr. visited with officials. On Thursday, President Obama said that the administration's aid package would require the companies to make "painful" and "pretty drastic" changes. It is not known how much more financial assistance would be offered or what conditions would be attached. click to read complete article