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by  February 18, 2009 Comments

No More Big 3 – Just The 3 From Detroit

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?

Comments welcome.

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My career has included owning and operating my own computer repair business as well as teaching at the local community college -- both of which were located in Tuolumne County, California. During this time I was fortunate to have contracts with the city of Sonora and several established real estate firms.

I have been writing for LockerGnome since relocating to Missouri six years ago, where I continue to be a technology enthusiast who enjoys playing with the newest and latest gadgets.

Comments

  1. Brian says:
    February 18, 2009 at 9:37 am

    I was wondering how Chrysler was doing because they own Jeep which seems to be doing fine since I’m looking into buying one. I hear part of the new stimulus package will not only give you money back on a new house, but on a new car also.

  2. Ron Schenone says:
    February 18, 2009 at 9:44 am

    My understanding is that you can claim interest and sales tax on the purchase of a new vehicle off of your income tax. But I would check this since I heard or read about this from a third party.