Detroit car makers heading for big cash troubles
I was recently wondering why the Detroit car makers are so desperate to merge (see the recent talks between GM and Cerberus Capital Management, the saviour who 17 months ago bought Chrysler from Daimler Benz). Of course, their car sales are plummeting, especially the trucks and the leasing sales, who were the profit drivers of these companies. But this is not the first recession they went through, so why are they so desperate right now?
Again, recession and lower sales is not a new thing for the Detroit big three. It started more than 10 years ago when Toyota and Honda moved aggressively on the US market and culminated with the Asian producers holding a bigger market share than the US domestic car makers since 2006 (oh, what a historical day!). Read More »Detroit car makers heading for big cash troubles