Bloggy Business Today

When a company files for bankruptcy, would there be anything to go after? General Motors, a company that almost found itself filing for bankruptcy itself were it not for the timely auto bailout that the U.S. government had released, has reportedly filed a lawsuit against one of its suppliers, Cadence.

Cadence, which makes door trim, instrument panels and air bag covers, filed for bankruptcy protection in August, but this month abandoned plans to sell itself and is now liquidating, according to court papers.

Now filing legal action is one thing but would it matter if the company has practically closed shop? What would you get from them if they have shut down operations already?

The Chevrolet Camaro car is their product line that is being threatened and without the parts on this line, a likely disruption is expected to ensue. If this were the case it seems like it is negating the initial aid that General Motors got and a big blow is likely to occur from their forecast and business outlook.

“Even one day’s disruption in supply of certain Component Parts could cause a shutdown of GM assembly operations, disrupting not only GM’s business, but the operations of countless suppliers, dealers, customers, and other stakeholders,” GM said in the complaint.

GM said that such a shut down could cost millions of dollars per plant per day and it would need to have a successor supplier in place by January 12 for the launch of the new Chevrolet Camaro.

Source

Technorati Tags: new_chevrolet_camaro, chevrolet_camaro, bankruptcy_protection, filing_for_bankruptcy, instrument_panels, assembly_operations, business_outlook, bailout, air_bag, component_parts, cadence, camaro, general_motors, stakeholders, gm, chevrolet

Bookmark It

In what was deemed as the last saving grace to save Detroit’s auto industry, the auto bailout is history as talks for dramatic salary increases to be in line with Japan’s auto industry had the United Auto Makers refuse the deal. So with that part of the auto bailout play layout unaccounted for, the Senate rejected the bailout plan, failing to acquire the 60 required votes to approve the financial aid to Chrysler and General Motors.

So with this development, the future of these two giant car manufacturers of Detroit are looking grimmer. They have declared that they could be weeks from closing shop, leaving Ford which did not request for financial assistance at this time but may soon follow their footsteps if business does not pick up.

In the end, the doom of the U.S. auto industry may be pointed towards the greedy and selfish desires of their labor and manpower resources, something that will surely be monumental. But they are not entirely to blame. They have to work to survive and the drastic cuts in wages seem to be too much for them as the cost of living for these people needs to be satisfied.

But don’t close the door just yet. We saw the same scenario before when the financial bailout was being made. Expect a new round of auto bailout talks since the U.S. is surely not going to allow their auto industry to just drop dead.

Source

Technorati Tags: financial_bailout, last_saving_grace, bailout_plan, manpower_resources, u_s_auto, auto_makers, drastic_cuts, auto_industry, united_auto, car_manufacturers, financial_assistance, general_motors, financial_aid, chrysler, salary

Bookmark It

The latter part of 2008 is not the best times we will remember. Global recession issues started to crop up months back and while many were bracing themselves on the effects of these factors, it seems that figures are now the best thing to justify that the world is truly in recession. Without significant numbers in the export side, you can just imagine how much the impact would be and why there is a trade deficit at this point.

With less imports resulting from poor markets and declining confidence in the economies, the United States had reported a trade deficit which is sending a lot of shivers to people who are following the potential outcome of these recession problems. Job layoffs have also risen and put them altogether and you have a world that is scrambling to make ends meet and try to survive this debacle that is here.

The Commerce Department reported Thursday that the trade deficit rose to $57.2 billion October, 1.1 percent higher than the September imbalance of $56.6 billion. Analysts expected the deficit to decline to $53.5 billion on lower oil prices.

So with these fact evident, it looks like we should be prepared for worst things ahead. No one wants to be in this situation but apparently we don’t have much of a choice but to go with the flow.

Source

Technorati Tags: global_recession, significant_numbers, trade_deficit, job_layoffs, commerce_department, oil_prices, united_states, confidence

Bookmark It

These days, people are trying to stay away from taking a loan with banks due to the hard times. With that said, banks are showing considerable decline in loans and this can be seen from the previous months where most of them have encountered up to a 20% decline in loan applications. Can you blame consumers?

People today have to be wise. If you are taking out a loan, make sure you can really pay the monthly amortization rather than face foreclosure. If that was the case, it is similar to giving the bank the payment and the property or asset in the long run. So if that is the scenario, why would anyone want to risk taking out a loan?

Surely, banks are not spared from the crisis. And from the looks of it, unless things look up as far as jobs, employment and career is concerned, we cannot discount the fact that people will tighten their belts in the faces of this financial crisis. You just have to live wiser and choose the investments you will be making. Otherwise, you are just digging a deeper hole and adding to your personal survival problems.

Technorati Tags: survival_problems, loan_applications, financial_crisis, amortization, foreclosure, decline, banks, investments, consumers, loans, jobs

Bookmark It

The “Big Three” have laid out their needs and have declared that if they don’t get any financial help soon, they may just be closing shop. Is the U.S. government listening? Unless they have earplugs on, the closure of the big three: General Motors, Ford and Chevrolet, could be the worst economic development the U.S. has ever faced and from all indications, they would do well to heed their call.

The Detroit automakers on Tuesday urged Congress to authorize $34 billion in loans and credit lines, far more than the $25 billion they failed to secure in November when lawmakers demanded the companies offer plans showing they could be made “viable.”

The development came on the same day that GM, Chrysler and Ford Motor Co posted a drop in combined U.S. sales of nearly 40 percent for November and warned that the world’s largest vehicle market showed signs of tumbling further in 2009.

The government has been put in a fix following the worst economic crisis ever to hit the country since decades ago. The pressure is mounting and though some sources say that help is on the way, hopefully it will not be too late to bail out the big three from impending closure or worst, bankruptcy.

Source

Technorati Tags: detroit_automakers, impending_closure, ford_motor, economic_crisis, financial_help, general_motors, economic_development, chrysler, chevrolet, bankruptcy, ford, congress, loans

Bookmark It