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Behind The Wheel
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D-Day For Big 3: Will They "Land" Congress With New Plans?
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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.
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