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May 26, 2008
US Auto Companies
On Friday, General Motors Corp.'s stock dropped 5 percent after the company reported that strikes at some of its own plants and parts supplier American Axle will cost the automaker about $2 billion, before taxes, in the second quarter. This drop came on top of a substantial drop in stock value at Ford after it announced that it would cut back the production of its best selling vehicle, the F-150 pickup. Ford's situation is precarious. The company's profits have, for years, depended on the sales of the F-150 and the truck platform SUVs. The sales of both are well down due to high gas prices. Neither GM nor Ford is a profitable company right now and both companies are running on cash reserves. The blame game is on in force as to who is at fault. One thing that all agree on; the country will suffer if we do not make competitive autos and trucks for the national and world markets
May 26, 2008 in Current Affairs | Permalink
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Comments
How about 30 years of incompetent management and 30 years of overreaching unions?
The unions are trying to get the last crumbs they can as their jobs are eliminated.
In my opinion, everyone who has been on the Ford board or in the Ford executive suite the past thirty years should be flogged in public. And all of the family members who allowed this mess.
GM isn't much better.
Posted by: save_the_rustbelt | May 27, 2008 7:24:03 AM
