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Currently, people wanting to buy cars are having a very difficult time doing so because of the credit market crisis, so that's a big part of the problem. They obviously need to re-tool. The sudden shifts in gas prices wreak havoc on them. People were buying gas hog SUVs like crazy and then BAM, gas prices skyrocket and people stop buying those and want smaller cars. It takes a long time to re-tool to make different vehicles at the plants where they've been making the gas guzzling trucks and SUVs. They have a lot of technology in development for alternative fuel sources. There was a $25 billion package for the auto companies to start re-tooling their factories for alternative fuel/better gas mileage cars but the money has yet to get to them. The unions are going to have make some concessions, I agree and that may not happen unless GM files chapter 11. Ford managed to sell off a lot of extra property that they had to help ease their cash flow issues but GM hasn't done that yet. The Ford plants around here all suddenly are surrounded by stores because Ford had a lot of a acreage around their plants. They've ridden it out during past recessions and made it and I think they can do it again. I read an article about how Cerberus (the company that now owns Chrysler) bought a controlling share of GMAC (the main loan/financing company for GM) and then made it very difficult to get GMAC loans. I think with a temporary loan for cash flow, they can stay alive, but rumors here are that they will be out of cash by the end of December.
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