US automakers close to collapse

“Back to Detroit” by Wayne Kramer

It’s a hard wind blows through the buildings and empty lots
As the corner of Michigan and 31st waits in ruin
And the echoes of happy shoppers faded long, long, long ago
Back when Chrysler, GM and Ford went mad with greed

Oh, how we hoped it would turn out right
Going back to Detroit

It’s deja vue all over again. Or maybe it’s even worse this time.

CNBC

This is the moment of reckoning for these companies. I know no one on the Street who thinks GM and Chrysler, or their suppliers, will survive in the form and structure that they currently exist in.

Ford seems to be in even worse shape than GM and Chrysler, and appears so hopeless it barely get mentioned in reports like these.

GM and Ford announce their third quarter losses tomorrow, which are expected to be somewhere between hideous and catastrophic.

Greedy, comatose managements. Cratering car sales. Pension obligations that can not possibly be met. There are so many to blame, but that seems pointless now.

Even if the government does backstop the automakers, there will still be enormous numbers of layoffs and downsizing. This story will not have a happy ending, especially for Detroit and Michigan.