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Sunday, April 5, 2009

Reform the United States triggered a global automotive industry concerns about the pros and cons of two counterparts concept

By by Professional editor from led automotive bulb.

Barack Obama President of the United States on the 30th rejected the auto industry giants GM and Chrysler's restructuring plan, the requirements limit the two companies plan to reform again, or else we may ask them to bankruptcy reorganization. This "news" related to the global car makers worried about the other.

GM and Chrysler companies restructuring or bankruptcy, will influence other countries in the world auto industry. Obama has been the restructuring plan was turned down by the Government, the global auto industry stock prices generally fell.

In addition to a global market, GM and Chrysler also has a large number of factories around the world with the brand. With which they are associated, directly or indirectly, a number of enterprises. In Europe, GM owns Opel brand in Germany and Sweden Saab brand, Chrysler is working with the Italian auto giant Fiat to discuss cooperation matters.

In Asia, Japan's Nissan Motor Co. and Toyota said that GM and Chrysler if the bankruptcy of their agency agencies in North America will have an influence on the operation.

Nissan and Toyota parts and components used in North America as well as generic manufacturers to supply components with Chrysler, the two companies bankrupt parts supplier may trigger a chain reaction. These parts and components supplier, including Delphi Automotive Systems, Bosch Auto Parts Company and TRW Automotive Group.

Affect all government

The United States Government's decision, announced shortly after the Canadian government announced that GM and Chrysler rejected the reform program. The two companies have a number of factories in Canada, after the Canadian government to request assistance.

In Germany, Opel production plants with North Rhine - Westphalia state representatives said the United States Government's general stance headed for the company's hard-line stance of the German central government government may be softening, in order that the Government is keen to liberate the German Opel.

In Sweden, commerce and older agents of the Department of Energy and Ge about Lan said that Sweden is worried, may pace the sale of GM's designs to Saab.

View of the pros and cons of both boundaries

Consultants and in accordance with the general government sources said, if GM filed for bankruptcy protection, there is control through bankruptcy reorganization proceedings to the reorganization of the company assets to a new high-quality companies in liquidation by the bankruptcy court auction of substandard assets, all re-signed with the creditors, trade unions and contract supplier to simply neat and clean-up of debt, back on track.

However, Reuters report bureau that this design may be tough to apply, the more the longer the delay.

First, even if the general triumph of spin-off low-quality assets, but from the automobile development because of examine and development, elements deliver, assembly and the flow of very included, time-possible reconstruction of support, high-quality assets at very arduous to be entirely independent.

Second, costly bankruptcy, "the entire auto industry will bring disastrous consequences." General in February pointed out that the traditional insolvency procedures required government-funded, at least 30 billion U.S. dollars. The company has so far received 13.4 billion U.S. dollars aid loans.

Third, the skilled population trust that the quick GM bankruptcy would deprive the possibility to whole the reorganization, not to mention not successful. University of Maine School of Law, Bankruptcy Law, Professor Lois Lupica said: "The need to address the long-term problem. The rudimentary obstacle here is that enterprise type no longer. - 18418

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