After huge losses and plunging sales, experts aren’t ruling out the possibility that GM, Ford or Chrysler might eventually be forced to declare bankruptcy. Last week, General Motors reported a $15.5 billion second quarter net loss. While its operating loss was only $6.3 billion, that’s still more than the market value of the company. GM’s loss followed an $8.7 billion loss at Ford Motor and came on the same day that the industry reported a 13% drop in sales, its worst month in 16 years. Chrysler LLC, which was bought by private equity group Cerberus Capital a year ago and does not report financial results, relies even more heavily on sales of light trucks, such as pickups and SUVs, than do GM and Ford. Chrysler also has virtually no overseas sales to fall back upon. More
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