Wizdom
16-11-08, 21:52
GM: Auto crisis will devastate US econ
Sun, 16 Nov 2008 19:06:08 GMT
The GM headquarters in Detroit says it could run out of cash by early next year.
General Motors CEO, Rick Wagoner, says bankruptcies in the US auto industry will have a 'devastating' effect on the country's economy.
"This is an issue of the whole auto industry, if that becomes under severe pressure, the impact on the whole US economy will be devastating," the Chief Executive said Sunday.
Talking to an NBC-affiliated television station in Detroit, Wagoner said General Motors is directly suffering form the Wall Street financial crisis.
He said the aid automakers seek should not be considered as 'federalizing a business'.
"The financial system is failing to supply the credit that is necessary for small businesses, big businesses, any businesses to operate on a daily basis," Wagoner said.
The global credit crisis and slumping economy, has pushed Detroit automakers to seek emergency assistance to help them survive a worsening drop in sales.
The House of Representatives Financial Services Committee is to hold a hearing on Wednesday on a legislation to extend up to $25 billion to leading US automakers, namely GM, Ford and Chrysler.
MT/HGH
Sun, 16 Nov 2008 19:06:08 GMT
The GM headquarters in Detroit says it could run out of cash by early next year.
General Motors CEO, Rick Wagoner, says bankruptcies in the US auto industry will have a 'devastating' effect on the country's economy.
"This is an issue of the whole auto industry, if that becomes under severe pressure, the impact on the whole US economy will be devastating," the Chief Executive said Sunday.
Talking to an NBC-affiliated television station in Detroit, Wagoner said General Motors is directly suffering form the Wall Street financial crisis.
He said the aid automakers seek should not be considered as 'federalizing a business'.
"The financial system is failing to supply the credit that is necessary for small businesses, big businesses, any businesses to operate on a daily basis," Wagoner said.
The global credit crisis and slumping economy, has pushed Detroit automakers to seek emergency assistance to help them survive a worsening drop in sales.
The House of Representatives Financial Services Committee is to hold a hearing on Wednesday on a legislation to extend up to $25 billion to leading US automakers, namely GM, Ford and Chrysler.
MT/HGH