THE BIG THREE AUTO MAKERS (GENERAL MOTORS CORPORATION, CHRYSLER CORPORATION, AND FORD MOTOR COMPANY) RETURNED TO WASHINGTON WITH THEIR PLANS FOR THE AMERICAN AUTOMOBILE INDUSTRY. THE CHIEF EXECUTIVES OF THE BIG THREE WERE THERE FOR POSSIBLE BUY OUT MONEY FROM THE UNITED STATES GOVERNMENT.
THE BIG THREE RETURNED TO THE UNITED STATES SENATE SEEKING A BUY OUT NOW ESTIMATED THIRTY FOUR BILLION DOLLARS ($34,000,000,000.00). TWO WEEKS AGO WHEN THE BIG THREE AUTO MAKERS REPRESENTATIVES WERE BEFORE THE SENATE, THEY WERE LOOKING FOR TWENTY FIVE BILLION DOLLARS ($25,000,000,000.00).
UNITED STATES AUTOMOBILE SALES FOR THE MONTH OF NOVEMBER, 2008, COMPARED TO NOVEMBER, 2007, WERE AS FOLLOWS: GENERAL MOTORS DOWN -41%, FORD MOTOR COMPANY DOWN -31%. ASIAN COMPETITION POSTED THE FOLLOWING COMPARED TO THE YEAR BEFORE FOR NOVEMBER: ,TOYOTA DOWN -34%, AND HONDA DOWN -32%. THE FACT THAT TOYOTA AND HONDA ARE DOWN IN SALES LEADS ONE TO BELIEVE THAT THIS IS AN INTERNATIONAL PROBLEM.
GENERAL MOTORS IS SEEKING $18 BILLION IN LOANS OR CREDIT LINES. THE CEO WILL GET A ONE DOLLAR ($1.00) SALARY NEXT YEAR. G M IS SEEKING TO GET UAW (UNITED AUTO WORKERS) TO MAKE CONCESSIONS TO HELP THE COMPANY. GENERAL MOTORS FEELS IT CAN PAY BACK THE LOANS BY 2012.
CHRYSLER IS SEEKING A $7 BILLION LOAN. CHRYSLER IS PLANNING ON BUILDING FULL-FUNCTION ELECTRIC CARS STARTING IN 2010, WITH ADDITIONAL MODELS BEING PRODUCED STARTING 2013.
FORD MOTOR COMPANY IS SEEKING AN ESTIMATED $9 BILLION DOLLARS IN LOANS. FORD PLANS TO INTRODUCE AND MANUFACTURER SIX (6) NEW SMALL AND MID-SIZED CARS OVER THE NEXT FOUR (4) YEARS. IT FEELS IT CAN INCREASE ON ITS FLEET OF CARS FUEL EFFICIENCY BY 14% IN 2009, 26% IN 2012 AND 36% IN 2015.
IN A STATEMENT ISSUED BY GENERAL MOTORS SAID, " EVERY MANUFACTURER IS POSTING AWFUL NUMBERS AND WE ARE NO EXCEPTION."
DR. MARK ZANDI, AN ECONOMIST FROM MOODY'S SAID THAT THE THIRTY FOUR BILLION DOLLARS, COULD ONLY LAST AT THE MOST TWO (2) YEARS WITHOUT THE BIG THREE AUTOMAKERS DO EVERYTHING RIGHT. DR. ZANDI HINTED THAT THE THREE BIG AUTOMAKERS WILL PROBABLY NEED MORE LIKE $75 BILLION TO $125 BILLION DOLLARS. ANOTHER ECONOMIST, THOUGHT THAT AT THE END OF TWO YEARS, IF THE AUTOMAKERS DID EVERYTHING RIGHT, THEY COULD THEN BORROW MORE MONEY AND PAY OFF THE GOVERNMENT LOANS.
EDITORIAL FOOTNOTE: SEARS HOLDING COMPANY (SEARS AND K-MART STORES) STOCK IS UP 17%. CUSTOMERS ARE SHOPPING LESS AT THEIR STORES. SEARS IS CLOSING STORES THAT ARE NOT PREFORMING WELL. AT THE END OF THE DAY THE PROJECTED THIRD QUARTER LOSS IS ESTIMATED AT $146 MILLION.
STAPLES (THE WORLD'S LARGEST OFFICE SUPPLY CHAIN) IS EXPECTING A 43% LOSS FOR THE THIRD QUARTER.
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