I have no pity for the Big Three. They learned nothing from the 70’s when they lost their auto share to the Japanese. You gotta ask yourself what in God’s name were these auto executives thinking. How did guys like these get appointed to run billion dollar companies only to drive them into the ground for lack of foresight. Elementary school children with corner Kool-aid stands have more financial insight. One word: Greed
Wall Street Journal
Ford Motor Co. announced cuts in production for the second time in two months and gave up on ending its losses by next year, as the scramble by all three Detroit auto makers to switch to smaller cars began to raise questions about how they’ll get enough cash to ride out the storm.
Ford said the plunge of U.S. truck and SUV sales due to record-high gasoline prices was forcing the new cuts, and even pushing back the launch of its redesigned F-150 pickup truck that once was expected to drive the company’s recovery. The moves suggest the company is bracing for a greater loss in 2008 than its $2.7 billion loss last year, and Ford said it no longer expects to break even by 2009. In the past few days, it has emerged that both Ford and General Motors Corp. are seeking ways to raise new capital, while Chrysler LLC is slashing costs to conserve cash. GM Chief Executive Rick Wagoner has said the company has enough cash for 2008 but declined to elaborate beyond that. More
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