Changes

===Auto crisis===

===Auto crisis===

[[Image:Toles2-18-09.jpg|thumb|280px]] 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>

[[Image:Toles2-18-09.jpg|thumb|280px]] 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>

In March 2009 GM reported that its auditors have raised substantial doubts about its ability to continue as a going concern, citing recurring losses from operations, stockholders' deficit and an inability to generate enough cash to meet its obligations.  GM has received $13.4 billion in federal loans, and the company is seeking a total of $30 billion from the government. During the past three years it has run up $82 billion in losses, including $30.9 billion in 2008. Bankruptcy appears likely.<ref>Nick Bunkley, "Auditors Raise Doubts About G.M.’s Viability," [http://www.nytimes.com/2009/03/06/business/06auto.html?hp ''New York Times'' Mar. 5, 2009]</ref> The Obama Administration has apparently decided that bankruptcy would be a mistake, and will try to keep the Big Three in operation.  

In March 2009 GM reported that its auditors have raised substantial doubts about its ability to continue as a going concern, citing recurring losses from operations, stockholders' deficit and an inability to generate enough cash to meet its obligations.  GM has received $13.4 billion in federal loans, and the company is seeking a total of $30 billion from the government. During the past three years it has run up $82 billion in losses, including $30.9 billion in 2008. Bankruptcy appears likely.<ref>Nick Bunkley, "Auditors Raise Doubts About G.M.’s Viability," [http://www.nytimes.com/2009/03/06/business/06auto.html?hp ''New York Times'' Mar. 5, 2009]</ref> The Obama Administration has apparently decided that bankruptcy would be a mistake, and will try to keep the Big Three in operation.  

In late April 2009 GM announced further downsizing that will reduce its American workforce to 38,000 union employees, compared with 395,000 at its peak in 1970.<ref> [http://www.nytimes.com/2009/04/28/business/28auto.html?hp Bill Vlasic And Nick Bunkley, "G.M.’S Latest Plan Envisions a Much Smaller Automaker," '' New York Times'' April 27, 2009]</ref>

In late April 2009 GM announced further downsizing that will reduce its American workforce to 38,000 union employees, compared with 395,000 at its peak in 1970.<ref> [http://www.nytimes.com/2009/04/28/business/28auto.html?hp Bill Vlasic And Nick Bunkley, "G.M.’S Latest Plan Envisions a Much Smaller Automaker," '' New York Times'' April 27, 2009]</ref>

===Bankruptcy scenario===

===Bankruptcy scenario===