Source: Business Week Online November 20, 2008
Author: David Kiley
Concept: Bailouts, Bankruptcy (revisited)
Brief Synopsis: This article follows up after the Detroit automakers went to Congress and came back without the $25 billion bailout they were hoping for. They do have another chance to ask for the money on December 8th, but according to the article, if the companies do not come up with a clear cut proposal of how they're going to use the money and show financial viability they will not get the money. And, although Ford is doing the best among the three auto makers, if Chrysler and GM fail, Ford will inevitably see an end as well. Consumers are standing back and seeking auto companies that are not posing failure.
My Thoughts: I think that in order to help these auto companies people who originally bought from these three should continue to seek their products if they want the companies to succeed. Consumers always act out of fear. For example, we hear recession and get rid of all our stocks. We hear a company might be going out of business, and instead of buying its products to keep it afloat, we seek out alternative companies. However, if people believe the quality of the products are valuable, they should continue to purchase them so the company does not fail. Our fear is really what hurts these companies and the economy. Congress can give these companies money, but will it really work? If consumers don't have confidence in the companies they will not purchase its vehicles, which would make the bailout pointless. Our country and it's citizens really need hope for the future....
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment