More Videos
- November Auto Sales Muddle Along
- Predictions 2010: Autos
- Saab Lovers Sound Off
- Obama's Emission Reduction Pledge Paints Future for Autos
- Toyota Makes Recall Fix And So Long Saab
- The L.A. Extravaganza: A Test for Auto Shows
- Volt Drive: Great Ride, Interesting Interior and a Friendly Chirp
- Volvo Talks Show New Day Dawning for China
- Starting Car2Go - Smart Move for Daimler
- GM Cuts Losses—Plans Early Loan Repayment
MOST SHARED
- Keeping America Great
- Cisco Has 84% of Tandberg, Won't Extend Bid
- Kohlberg Kravis Bidding for Morgan Stanley's CICC Stake
- Case Closed but Woods Scrutiny Continues
- Australia Regulator Opposes Caltex-Exxon Deal
- UK Economy Turned, Inflation to Spike: BoE Economist
- Toyota Takes Lead Position in Canada in November
- Hyundai's US Auto Sales Jump 46% in November
- Unemployment to Peak at 10.5%: Moody's Economist
- 8 Stocks to Gain on Obama's Afghan Plan: Analysts
- BofA On Proposed Changes In The Housing Bailout Program
- The Future of The Media Landscape
- November Auto Sales Muddle Along
- Busch: What Obama Won't Say Tonight
- Stick with Equities—Avoid Emerging Markets: Laszlo Birinyi
- Pfizer Chomps On A Carrot
- Predictions 2010: Technology
- Job Cuts Fall to Lowest in Nearly 2 Years: Challenger
- Wal-Mart Targets Video Games with Latest Price Cuts
- 'Black Swan' Shuns Public Life Because of Bernanke
- Look Ahead: Markets Count Down to US Jobs Report
- Dubai World To Meet with Creditors Next Week
- FHA to Toughen Mortgage Rules in Lenders Crackdown
- Obama to Send More Troops; Seeks Afghanistan Exit
- GM Removes CEO Henderson; Whitacre Is Interim Chief
- UK Economy Turned, Inflation to Spike: BoE Economist
RSS FEED
Behind The Wheel
Text Size 
 |
CNBC.com Big 3 Bailout |
First, the bad news. November auto sales will be terrible. The estimate is for sales dropping 25% and the sales pace being around 11 million vehicles. Both would be in line with the weak numbers we saw in October. Bottom line: little is moving right now and the consumer has little interest in signing up for $20,000 or $30,000 auto loan.
The hopeful news comes later today when the Big 3 send Congress their business plans for getting back in black. We know they will all include commitments to going green with more fuel efficient cars, limiting executive pay, and right-sizing their companies. For me though, the real story is in the details.
Will GM sell some of its brands? Will Ford be able to turn a profit with small cars? What is Chrysler's cash on hand?
The answers to these questions will go a long ways toward determining whether the public buys into the idea of lending the Big 3 billions of dollars. My gut says the reaction to the business plans will be mixed.
___________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes