GM, Chrysler, and Ford on the Brink of Bankrupcy

Ford, Chrysler, and GM, the big three American car companies, are on the brink of filing for bankrupcy. The three chiefs of the companies, Alan Mulally, Bob Nardelli, and Rick Wagoner, respectively, all have asked the government to give them a loan of $25 billion to help them get back on their feet. Probably the only benefit of loaning this tremendous sum of money to the Big 3 would be that it would prevent the nation from possibly realizing the true situation we are in right now. The Big 3 also has not provided enough facts to back up their claims. However, Professor Peter Morici, said he thought manufacturers would continue to lose money unless they could match competitors’ costs and reduce capacity. He believes that they must go through major restructuring in order to stay afloat. Even if they are loaned the $25 billion, who knows how they are going to use this money, seeing as past companies have spent the precious company money on $45,000 vacations.