Hamburg - Carmakers struggling to fund lease purchase sales may turn to a German government fund originally devised to bail out banks, according to a news report Saturday.
The financial services divisions of most automakers hold banking licences in Germany and could qualify for guarantees. Interest rates on those guarantees average about
2 per cent annually, which is significantly cheaper than commercial borrowing rates in the current credit crunch.
The reported third quarter operating losses – nearly $7.2 billion combined - for General Motors Corp and Ford Motor Co are worse than what were being feared. This, according to an events expert, raises the possibility that one or both will run out of cash within the next year, thereby giving the shuddering economy yet another blow.
While GM posted a $4.2-billion operating loss, Ford reported loss of $2.98 billion. The two companies said their rate of cash burn had accelerated, as an extended slump in car sales raised questions about the future of the US auto industry.
The ongoing world financial crisis has badly impacted the commercial vehicle industry. High interest rates and liquidity crunch forced them to reduce production and think over cost cutting measures. Many automobile companies have cut production due to decrease in demand and low sale of commercial vehicles.
Washington - The two major US automakers, Ford Motor Co and General Motors Corp, reported massive third-quarters losses Friday as the ailing industry continued to lose cash and shed jobs.
Ford, the second-largest US automaker, reported a third-quarter operating loss of 2.98 billion dollars and said it would cut jobs and spending to preserve its perilous cash reserves.
Buenos Aires - The ongoing global financial crisis has reached the Argentine car industry, with Renault's local branch on Friday suspending 1,000 workers for 10 days.
After sales fell in October, for the first in five years, the press spokesman for the Argentine Mechanics' Union SMATA, Leonardo Almada, noted that the move is set to affect "practically the whole" Renault plant in the central city of Cordoba.
Workers were to obtain 70 per cent of their regular salaries during the suspension.
Washington - General Motors Corp warned Friday that it was running out of the minimum cash it needs to operate till the end of the year, and posted third-quarter operating losses of 4.2 billion dollars.
GM, the largest US automaker, has sought federal aid to avoid a collapse. The company said it needs at least 11 billion dollars in cash each month to pay its bills.
In the third quarter, GM used 6.9 billion dollars in cash and said it could fall below the minimum it needs to operate for the rest of the year.
Hamburg - Carmakers struggling to fund lease purchase sales may turn to a German government fund originally devised to bail out banks, according to a news report Saturday.
The reported third quarter operating losses – nearly $7.2 billion combined - for General Motors Corp and Ford Motor Co are worse than what were being feared. This, according to an events expert, raises the possibility that one or both will run out of cash within the next year, thereby giving the shuddering economy yet another blow.
The ongoing world financial crisis has badly impacted the commercial vehicle industry. High interest rates and liquidity crunch forced them to reduce production and think over cost cutting measures. Many automobile companies have cut production due to decrease in demand and low sale of commercial vehicles.
Washington - The two major US automakers, Ford Motor Co and General Motors Corp, reported massive third-quarters losses Friday as the ailing industry continued to lose cash and shed jobs.
Buenos Aires - The ongoing global financial crisis has reached the Argentine car industry, with Renault's local branch on Friday suspending 1,000 workers for 10 days.
Washington - General Motors Corp warned Friday that it was running out of the minimum cash it needs to operate till the end of the year, and posted third-quarter operating losses of 4.2 billion dollars.
