GM plans to chop about 42% of its dealership or 2,600 while Chrysler plans to trim down 27% or 850 dealerships (Dealers Fighting Day Of Reckoning; CNBC). There may be more to come but the NADA begs the socialists for help already. It was an obvious step to shed dealerships when the suppliers collapse. The NADA is not the only one who begs the socialists (US auto suppliers lobby for federal support; AP). As dumb and ignorant as the socialists and the Obamanites are, they slowly run out of means to support idiocy.
The suppliers act like they should produce just for the sake of production and manufacture parts which will never be used. The dealers want to load up showrooms with cars nobody wants to buy. Face reality, the industry will shrink and that means that the total labor force will shrink with it. It was inevitable for years and now reality caught up with the illusion that mismanagement can continue to keep a business afloat forever.
Chrysler initiated a new round of buyout offers at seven of its eight plants which are due to close as part of its bankruptcy proceedings (Chrysler offering buyouts to union workers; Reuters). All 26,000 hourly workers in the U.S. have been offered $50,000 cash and a $25,000 voucher for a new Chrysler car. Those who don't take it, too bad as it may be the best they can get from Chrysler. The irony is that, if they would take the money and decide to be smart with it, they would earn more every month then they currently earn from their job.
Ford has problems as well and walks a fine line between bankruptcy and survival, even though management if very confident that their restructuring plans will work. AT least they are ready to cut more expenses if necessary (Ford profit target on track, to cut more if needed; Reuters). The control of the Ford family may help Ford to make it through this crisis. Ford has the best chance of survival, Chrysler already filed for bankruptcy and sold out to Fiat while GM will file for bankruptcy sooner or sooner. Ford, if they implement a smart startegy, could come up as a huge winner...
The suppliers act like they should produce just for the sake of production and manufacture parts which will never be used. The dealers want to load up showrooms with cars nobody wants to buy. Face reality, the industry will shrink and that means that the total labor force will shrink with it. It was inevitable for years and now reality caught up with the illusion that mismanagement can continue to keep a business afloat forever.
Chrysler initiated a new round of buyout offers at seven of its eight plants which are due to close as part of its bankruptcy proceedings (Chrysler offering buyouts to union workers; Reuters). All 26,000 hourly workers in the U.S. have been offered $50,000 cash and a $25,000 voucher for a new Chrysler car. Those who don't take it, too bad as it may be the best they can get from Chrysler. The irony is that, if they would take the money and decide to be smart with it, they would earn more every month then they currently earn from their job.
Ford has problems as well and walks a fine line between bankruptcy and survival, even though management if very confident that their restructuring plans will work. AT least they are ready to cut more expenses if necessary (Ford profit target on track, to cut more if needed; Reuters). The control of the Ford family may help Ford to make it through this crisis. Ford has the best chance of survival, Chrysler already filed for bankruptcy and sold out to Fiat while GM will file for bankruptcy sooner or sooner. Ford, if they implement a smart startegy, could come up as a huge winner...
