Brian
2008-12-18 06:21:17
There should be a bridge loan with major concessions from the Detroit 3 and the UAW.
1) This is primarily an economic crises hitting the auto industry. Honda is set to lose over a billion dollars in 2008. Toyota and Honda both had sales decline of over 30% last month. Coupled that with the significant sales declines in Japan and it will not be long before Toyota and Honda are requesting a bailout from their government. I bet before June 2009.
2) If the Detroit 3 go down, the economic depression to hit Michigan will be very long lasting. Decades long.
3) I would not be surprised if Toyota rescues GM. The Japanese manufacturers have stated that if any of the Detroit 3 fail, it would be detrimental to their business.
