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Posted by MoparNorm on Thursday, November 27, 2008 at 15:06:32 :
In Reply to: Re: Word is that ... posted by Todd Wilson on Thursday, November 27, 2008 at 12:10:46 :
The economy did not wind down, it stopped dead in it's tracks.
GM ran out of money in the middle of negotiations. The 11 billion in Chrysler funds went in Sept. Oct. and Nov. at 3 billion a month, do the math, next month may be it for both of them, if sales do not rebound.
Out of the Detroit Three, only Chrysler project a slow down to 14 million vehicles, GM and Ford expected 16 million in sales. Currently we are at 10 million sales and falling, that essentially was 3 million unsold American built vehicles, sitting on lots, paid for, but not sold. That would have been 75 billion worth of vehicles, if they had not cut back drastically.
The current, actual unsold inventory is at approx. 350,000 units, or $8,750,000,000. That's 8 billion, 750 million dollars.