GM, CHRYSLER AND FORD MOTORS have run out of control !!

About 250,000 jobs in the United States as well as in Britain are at serious risk due to the financial difficulties felt by Detroit city’s General Motors, Chrysler and Ford, as consumers face the credit crunch and are not purchasing cars. The credit crunch is a sudden reduction in the general availability of loans (or credit), or a sudden increase in the cost of obtaining loans from banks. Thus, consumers are directly affected and their purchasing power diminishes, and with this tumbling demand, U.S. automakers are feeling fragile with stagnant sales.

Simply put, financing a car for consumers has become harder in the current stagnant economic climate, where, for automakers, inventories begin to stock up and become tougher to shift.

The companies have had to slash manufacturing production across factories globally due to the current worldwide recession. All three companies have appealed for a modest $25 billion bailout by the U.S. congress. In an effort of damage control, the company has got rid of two of its luxury jets. GM was also forced to sell its stake in Suzuki due to this financial meltdown and the lagging consumer demand for its cars.

U.S. president elect, Mr. Obama has repeatedly stressed the need to help the sector, since winning the presidential election, and has urged President Bush to take immediate action to save America’s home-grown automakers. He has described it as the "backbone of American manufacturing." Considering that Detroit city, home to GM, Chrysler and Ford, is the spine to America’s auto-making industry, it seems that the government will be more than likely and happy to offer a helping hand. The question is when and how. Or should they ride out the current tides independently? Would it make sense for the U.S. congress to turn a blind eye on such a crucial American industry and allow it to collapse? I think not.