Thursday, March 30, 2006
Wither Detroit: Update
My Crystal Ball
Could things get worse for General Motors? Probably not. First President Bush vows to let them go bankrupt, then Delphi goes under, they have to restate earnings from GMAC, and now new CAFE standards for SUVs threaten to undermine GM's profits even more.
Seems that a GM bankruptcy is unavoidable...most likely to come after the 2006 elections. So, my prediction is GM files for chapter 11 between November 2006 and July 2007. I hope I am wrong, but either way it's going to be a tough few years up in Michigan.
Could things get worse for General Motors? Probably not. First President Bush vows to let them go bankrupt, then Delphi goes under, they have to restate earnings from GMAC, and now new CAFE standards for SUVs threaten to undermine GM's profits even more.
Seems that a GM bankruptcy is unavoidable...most likely to come after the 2006 elections. So, my prediction is GM files for chapter 11 between November 2006 and July 2007. I hope I am wrong, but either way it's going to be a tough few years up in Michigan.
