After all the troubles with G.M. there is finally some hope. G.M. has already borrowed
$ 13.4 billion from the U.S. government and asked an additional loan of $ 2 billion for the month of March. But the car constructing company said this week that it doesn’t need the loan of March to avoid bankruptcy.
This development shows that the restructuring plan works and they achieved more progress in reducing costs than expected. G.M. will also remain in contact with the presidential task force on the auto industry to look if the company makes further progress.
However it’s not sure if G.M. needs the other loans the request about 2 months ago for the month April ($2.6 billion) and the $4.5 billion in 2010. Although G.M. is doing well in the U.S., in Canada G.M. and Chrysler are seeking financial aid. When they don’t get help from the Canadian government it’s most likely they have to close their plants. Chrysler is not only doing bad in Canada, it also asked for another $5 billion above the $4 billion they already borrowed of the U.S. government. It’s however most unlikely that G.M. and Chrysler get financial support from the Canadian government because the government says that the current agreement is unacceptable.
This is finally some good news about the car industry in the U.S., after Ford also G.M. is trying to work further without government aid and I think G.M. has to try to keep up this good work. I also think that this is a signal that restructuring plan works and they have to do the same in Canada and the rest of the world. It’s necessary that G.M. and Chrysler do something about the situation in Canada because it’s not very likely that they get a loan under the current conditions, unless they change a lot of things.
Source: http://www.nytimes.com/2009/03/13/business/13auto.html?ref=business
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Finally some good news. It's great to hear that General Motors isn't going to need this loan any longer. Just like you I think this is a signal to the outside world that shows that things finally might start run a bit better in the car industry. Restructuring plans seem to do their work. The sector has already faced enough troubles because of the economical and financial crisis. I'd say: keep up the good work!
BeantwoordenVerwijderenI also agree with Niels and Maxime. According to me, the aid and assistance of the government was very effective. The results speaks volumes, the car industry is now in his better days. The restructuring plans helped and still helps General Motors. Canada will be the next challenge..First and foremost this situation is very promising!
BeantwoordenVerwijderenI'm pleased to hear that G.M. is trying to work further without government aid. It's better to make a good recovery plan than counting on government aid.
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