WASHINGTON, WEDNESDAY - The three biggest U.S. carmakers commonly called The Big Three out of time to convince Congress that they should be assisted. The debate over the auto industry should get assistance from the government or not still continues.
After holding hearings on Tuesday, leaders of General Motors, Ford, and Chrysler back to Congress on Wednesday (19/11) in Washington.
"The auto industry we need a bridge to overcome the existing crisis in front of us," said General Motors Corp. CEO Rick Wagoner in front of the U.S. House Committee on Financial Sector Tuesday.
"The problem facing the industry through no fault of management, but due to the global financial crisis is deepening," he continued.
Robert Nardelli, Chrysler CEO, said the bailout they are asking for would cost less than they left the company bankrupt.
Rick Wagoner warned that the U.S. auto industry bankruptcy would create 3 million people became unemployed in the first year and that number will continue to rise.
"Bankruptcy is not just about the interests of Detroit (U.S. automotive headquarters), but that does not concern the U.S. economy experienced a deeper fall," said Wagoner.
Nardelli rejected suggestions that the automakers filed for bankruptcy protection that Article 11 (Chapter 11). This method has been carried out which airlines are protected from creditors and managed to bounce back after the restructuring. "We're not sure can bounce back from bankruptcy," he said.
The automotive industry's financial condition became worse from day to day. General Motors is experiencing difficulties will delay the return of cash rebates to its dealers and other sales incentives. Company for General Motors can even run out of cash by the end of this year if it does not get help from the government.
Nothing new models
Difficulties that occur in the automotive industry to make General Motors and Chrysler did not release their latest car models at the auto show in Los Angeles. Ford just issued a mid-sized car. General Motors initially planned launch of new models, but was canceled because of financial problems.
The U.S. auto industry also gave a dilemma to the U.S. Government. If assisted, the U.S. auto industry will complain to the World Trade Organization (WTO). Bailout is considered to violate WTO rules.
After holding hearings on Tuesday, leaders of General Motors, Ford, and Chrysler back to Congress on Wednesday (19/11) in Washington.
"The auto industry we need a bridge to overcome the existing crisis in front of us," said General Motors Corp. CEO Rick Wagoner in front of the U.S. House Committee on Financial Sector Tuesday.
"The problem facing the industry through no fault of management, but due to the global financial crisis is deepening," he continued.
Robert Nardelli, Chrysler CEO, said the bailout they are asking for would cost less than they left the company bankrupt.
Rick Wagoner warned that the U.S. auto industry bankruptcy would create 3 million people became unemployed in the first year and that number will continue to rise.
"Bankruptcy is not just about the interests of Detroit (U.S. automotive headquarters), but that does not concern the U.S. economy experienced a deeper fall," said Wagoner.
Nardelli rejected suggestions that the automakers filed for bankruptcy protection that Article 11 (Chapter 11). This method has been carried out which airlines are protected from creditors and managed to bounce back after the restructuring. "We're not sure can bounce back from bankruptcy," he said.
The automotive industry's financial condition became worse from day to day. General Motors is experiencing difficulties will delay the return of cash rebates to its dealers and other sales incentives. Company for General Motors can even run out of cash by the end of this year if it does not get help from the government.
Nothing new models
Difficulties that occur in the automotive industry to make General Motors and Chrysler did not release their latest car models at the auto show in Los Angeles. Ford just issued a mid-sized car. General Motors initially planned launch of new models, but was canceled because of financial problems.
The U.S. auto industry also gave a dilemma to the U.S. Government. If assisted, the U.S. auto industry will complain to the World Trade Organization (WTO). Bailout is considered to violate WTO rules.
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