Quote:
Originally Posted by NICKG
let me answer that ...and LenDaddy will hopefully chime in....if gm goes under(bk) and no plan is in place to pay the suppliers....Chrysler is done...and ford will likely fail in a short period afterwards. Toyota, Honda and all the other makers who have plants here will be really hurt....really hurt. the industry as a whole may collapse. the reason is that if there is no plan to pay the suppliers, they all fail...now. The car companies have cut them to the bone, and they just don't pay on their recievables in a timely manner, most are 90-180 days out and now that the banks are not lending against these receiveables, there is not enough cashflow to operate. once the snowball starts to roll, it's gonna wipe the industry out in this country...
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I think the popular theory is that GM reorganizes using govt money, not shuts it's doors. Normal operations and production would continue. That would avoid the "doomsday scenario" that you describe.
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‘07 Mazda RX8
Past: 911T, 911SC, Carrera, 951s, 955, 996s, 987s, 986s, 997s, BMW 5x, C36, C63, XJR, S8, Maserati Coupe, GT500, etc
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