On Friday General Motors reported its quarterly loss, which was worse than expected. GM indicated that it may file for chapter 11 unless the federal government rescues it.
According to cnn.com, GM reported quarterly loss of $4.2 billion dollars. Last year it reported a loss of $1.6 billion. The only thing that can save the biggest automaker of the nation is the help from the government or if the economy improves drastically.
The speculations are that if GM goes down, it will drag many others with it. If GM files for chapter 11, then it would sell the cars at far lower rates, forcing ford and Chrysler to follow the same. It may impact the already tumbling economic condition of ford and Chrysler.
Many are saying that the government needs to take a decision in a few weeks before an auto giant goes down and starts a chain reaction.
http://www.latimes.com/classified/automotive/highway1/la-fi-autos8-2008nov08,0,5869714.story
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