Interesting article on the fate of the US automotive industry. The good news, the professors in this article believe the big 3 will survive.

"MacDuffie believes that Ford, GM and Chrysler each should be able to get access to the capital they need to shift to a more fuel-efficient product line and avert rumored bankruptcy filings. "GM is certainly feeling an unexpected cash crunch," he notes, "and the company's stock has hit an historic low. But [GM executives] have the potential for raising cash by selling some things. They could even go to the capital markets to get more money. I don't see them lacking in options to deal with the cash crunch."

The article then goes on to discuss what the future holds for these companies and the auto industry.

 

Submitted: Jul 17, 2008    Views: 42    Comments: 2    Likes: 2   


View Article: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2012


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Comments Received:

AronLiv
AronLiv

I am a Wharton grad and these morons don't have a clue. These company's can't survive. The sensitivity analysis that they ran for all of their projects didn't include the possibility of oil over $80.

Posted: Jul 17, 2008

Sam Cass
Sam_Cass

The companies will probably survive. They have plenty of resources to draw upon. As a last resort, they can go to the unions and cut benefits some more.

Posted: Jul 17, 2008



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