The Ru, st Belt just keeps taking body blows and crushing shots to the jaw. It’s hard to see how these companies can remain afloat without the government simply stepping in and taking over for the time being. Is GM too big to fail? Ford? Is the auto part supply chain so weak that if any of the onetime “big three” collapse, the whole system breaks down?
We may find out before long. Talking to a group of businessmen last night, the general consensus on the unemployment aspect of this financial crisis is the rate will slow, but rising unemployment will likely continue unabated through the end of 2010 if not longer.
From the link:
The three largest automakers, including Toyota, each said their sales declined at least 40 percent from February 2008.
Sales were down 53 percent at General Motors, 48 percent at the Ford Motor Company and 40 percent at Toyota. Chrysler sales fell 44 percent.
Honda reported a 38 percent drop, while Nissan said its sales fell 37 percent.
“The February numbers are clearly a step down from where we’d been running the last four months,” said Michael C. DiGiovanni, G.M.’s chief sales analyst. “It’s unsettling to our business. These are obviously unsustainable levels which are causing almost every auto manufacturer across the world to look for government aid.”
G.M., of course, has gotten $13.4 billion from the federal government to help it avoid seeking bankruptcy protection, while Chrysler, which will report its sales later Tuesday, has received $4 billion.
David Kirkpatrick 
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