Is an orderly bankruptcy of US car manufacturers on the cards
Today has been something of a turning point for the US car industry with news that the US government is looking for what has been termed "an orderly bankruptcy of the US car manufacturers". At this moment in time nobody quite knows what this plan means to the industry although it has been confirmed that the traditional two-week manufacturing break over Christmas will be extended to a minimum of four weeks.
New cars are literally piling up at the manufacturing plants and with many sales centres seeing no customers let alone selling any cars each day the situation looks like getting worse. Cash flow is now critical for the main leaders in the industry although quite how the so-called orderly bankruptcy will assist the industry remains to be seen. Figures show that 1 in 10 jobs in the US are connected in some shape or form to the car industry which has massive implications for the unemployment figures in the country.
As seen in the UK, rescue package after you package after rescue package is seemingly being confirmed by the US government on a regular basis. As yet there has been very little if any return on funds invested something which could actually hinder future taxpayer related rescue packages.
Share this..
Related stories
Billionaire hedge fund manager bags £100 million RBS profit
Controversial billionaire hedge fund manager John Paulson is estimated to have made over £100 million by betting against the share price of Royal Bank of Scotland in an operation known as "shorting". The controversial investment strategy has been pinpointed as one of the reasons for the collapse in the UK banking sector while others in the market suggest it is fundamentals alone which move the ma...
Read MoreNationwide brings back the 95% mortgage
The Nationwide building society has put itself in the firing line of regulators and the government after announcing the reintroduction of mortgages worth up to 95% of a property's value. However, those looking for a 95% mortgage will certainly pay the price with a rate of 7.18% quoted against UK base rates of just 2%. The rate does decrease depending upon the amount of funding which buys are able...
Read MoreSir Stuart Rose survives investor rebellion
As had been expected at today's AGM, Marks & Spencer chief executive and executive chairman Sir Stuart Rose faced a significant investor backlash. In total 38% of investors called on the former saviour of Marks & Spencer to step down as chairman earlier than 2010 while retaining his position as chief executive. There was also a smaller rebellion, which saw 21.5% of investors vote against or abstai...
Read MoreBritish Airways three-way deal hits the skids
The British Airways three-way merger between Qantas and Iberia is on the verge of collapse after the Australian airline withdrew from talks. The problem seems to have occurred from the fact that British Airways had not advised its other partners that it was looking towards a three-way merger which has left many directors feeling out of the loop. This had been put forward as a major step in the rig...
Read MoreFSA arrest six more suspected insider dealers
Over the last few months we have seen a significant increase in activity by the FSA in relation to trading abuses in the UK marketplace. The latest raid yesterday saw six arrested across the UK as the regulators continue a serious crack down upon financial misdemeanours and market abuse. While very few details of the specific nature of the alleged abuses have been released in relation to these lat...
Read More