Paulson Sector

But there are other questions about the automotive sector that would be preventing that aid through concluded. In relation to this, Paulson made it clear his thinking on the matter by saying that the granting of State funds would only delay renewal who considered that these automotive must undergo to be competitive again against its European and Asian rivals. If it is as Paulson, could probably impose conditions on aid for a restructuring of these companies plan directed and controlled by the U.S. Government and thus prevent the collapse of the sector. The problems of efficiency of the US automotive sector that require a deep restructuring to be solved, come when some time ago in the debate. Therefore, that is at this time that several lawmakers leverage to throw them on the managers of these companies face their responsibilities by the situation.

Meanwhile, since the U.S. Senate, it was decided to postpone the vote which had been scheduled for today about the rescue plan for the sector. Despite the postponement, the leaders of the U.S. Congress.UU. pledged yesterday to work on a rescue plan for the auto industry, but they conditioned him Detroit’s big three to submit a viability plan to 2 December next. In relation to the above, the President of the House of representatives, Democrat Nancy Pelosi, said: until they show us a plan, we can not teach them the money. While it postpones the discussion about the possibility of a bailout, to these companies in the automotive sector is not them too long in life.

It is estimated that General Motors has financing and equity for two or three weeks, from which, could file for bankruptcy. In the case of Ford, the company decided to sell a package of 20% of its shares in the Japanese automaker Mazda (reducing their participation to 13%), to achieve short-term liquidity, which expects to obtain about $538 million. What happens with the American automotive sector? What you could say is that it is too big to fall and the experience of the American Government with Lehman Brothers makes them aware about the terrible consequences that can have the collapse of the sector for the American economy.

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