Problems for the US auto makers did not just crop up this past year and are not the result of high gas prices. For GM, the company has not shown a profit since 2004. So what has GM been doing for the past 4 years or so? Obviously not running a profitable business.
Over at Ford they aren’t asking for help yet but they may need some stimulus down the road. There problems began in 2006 when they posted a loss of over $12 Billion. They have stemmed some of the red ink but don’t appear to be heading to profitability any time soon.
Chrysler isn’t much better but they only lost $680 Million in 2006. They have been cutting jobs for several years but are having problems stopping the red ink from flowing.
Now that auto sales are in the crapper will a US bailout of the Detroit 3 work?
What do you think?