In 2009 The Domestic Autos Will Look Verry Different

The new year has given me the time to reflect on the future of the Big 3. First I will start with Chrysler, because it seems to be in the most difficult position. As many of you are aware Chrysler was sold by Mercedes Benz to private equity group Cerberus. Cerburus bought Chrysler in order to get Chrysler financial. The problem with this is that Cerberus is NOT interested in floating Chrysler, the perfect example of this is when at the Congressional hearing's in November when a member of congress asked Nardelli as to why should the government bailout a company when the parent company has no in tension of using it's multi billion dollar reserve to stabilize the car company. Now, the other problem is that MB still owns 20% of Chrysler making any sale of the car company very difficult. We also know, through Cerberus actions, by way of gmac(GM's Financial Institution). What transpired was absolutely observed. Cerberus, through GM's financial trubble bough 51% of gmac from GM. GM sold it's sare in order to rasie money. When Cerberus decided it wanted to separate itself form Chrysler it tried to merge it with GM. After GM said no, Cerberus locked down gmac virtually eliminating GM's ability to sell cars. By raising the credit score to an unobtainable level (750 score to by any car). This eliminates about half of GM customers, basically forcing GM to take on Chrysler or have almost no loans available for customers. This is why I feel that once Cerberus can get rid of Chrysler it will to anyone, including even the Chinese.
Second is GM, they are in a different position entirely. They have received a bridge loan along a hand full of limitations in witch ad hear to. GM has untill March to complete an entire company transformation. This will not happen GM doesn't have enough time. So lets look forward to March. If GM does not met turn around criteria it will have to file for chapter 11. In my opinion this will lead directly to chapter 7 (asset liquidation) which will be the end of GM.
Lastly FORD. Ford is in an envy able position because there turn around plan is working. Ford has said the money is there until 2011, there products are the best in the word (according to J.D. Powers & Associates, AutoPacific)and the business plan for the future works. According to Ford they are fine as long as GM and/or Chrysler don't fail. The problems are with the suppliers as about 80% of them supply of more then one of them, the repercussion of one supplier falling hurts all of the auto makers. If/when GM collapses this could spell doom for Ford. However I don't think it will, read my fallow up column and you will understand why.
So I hope not but predict buy 2010 all three will be gone or in the proses of bankruptcy. It will be a sad day when this happens, it will hinder are ability to remain a world super power, without any real manufacturing we will be in real trouble. During world war 2 president Truman called Detroit the arsenal of democracy,when America needed Detroit was there and when Detroit needs us Congress was SILENT. I say through the bastards OUT!!! Lets save Detroit, please buy quality buy reliability Buy AMERICAN.