er will see Ross...and i can guarantee Canada will not be alone...there is a very rich country to the south of america that needs the big 3 as well...
The problem is, there is no reason why giving them cash would save them. It will just keep them around for another day.
When the US goverment extended a 1 billion loan in Chrysler back in 1980, the problem the company faced was that their product line, and production was behind the time. There was a market for their product if it could be improved. The government money was used to launch the K-car based cars and mini-vans that turned the company around.
In todays situation, its not a matter of GM not being competitve. Its a matter that people are not buying cars. Their production ablity exceeds market demand, as such they have to many expenses related to that. GM's revenue was 160 billion last year, the problem is their expenses were greater..
The econmy is the root of the problem and untill people start spending, companies such as GM, with large expenses cannot be saved.
Problem is, we have let the banks run wild without being controled. People have long since spent more than their net worth, and were allowed to continue to spend on credit. Bascially we are all in debt, and there is more debt out there than assets and cash combined.
For example you max a cedit card, and are unable to pay. You get another card to pay the first one. On paper that looks great, there is debt and its being paid back. The problem is its an illusion, its debt used to pay back dept used to pay back... A deck of cards ready to crash. Those responsible knew this, and have long since cashed out.
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