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→Financial crisis: GM falters
Auto sales were down again in December 2008, as the major companies (including the Big Three, Toyota and Honda) all reported sales declines from 2007 of about 30-32%.
Auto sales were down again in December 2008, as the major companies (including the Big Three, Toyota and Honda) all reported sales declines from 2007 of about 30-32%.
===Crisis worsens in 2009===
===Auto crisis===
The automobile industry is in desperate crisis, with General Motors and Chrysler, and numerous parts suppliers, on the verge of bankruptcy. Ford is in better shape as are the "transplants" like Toyota and Honda that have factories in the U.S. If GM shuts down, however, many parts suppliers will also shut, forcing the end of most US auto production. Autos will still be imported from other countries, though at much higher prices. GM and Chrysler were given $17 billion TARP funds in December on condition they present a turnaround plan by Feb. 17, 2009. In its plan GM will ask for access to an additional $16.6 billion in federal aid; otherwise will run out of money by March 2009. GM also said it would close 14 U.S. plants, and cut 47,000 global hourly, salaried jobs. Bankruptcy, GM said, would cost the federal government $100 billion in losses, as well as the loss of 1.3 million jobs across the US, as plants and dealers close down operation.<ref>. For the GM plan see [http://www.treas.gov/initiatives/eesa/agreements/auto-reports/GMRestructuringPlan.pdf GM Plan of Feb 17, 2009]</ref>
===Bankruptcy scenario===
===Bankruptcy scenario===