Exapmle-CARS - Ford or GM? 1 Running Head: Ford Or GM? Ford...

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Ford or GM? Running Head: Ford Or GM? Ford Or GM? Who Is More Financially Viable [Name of Student] [Name of University] The Industry According to the Annual 10-k filing (2008) of General Motor Company (GMC), “In 2008, the global automotive industry has been severely affected by the deepening global credit crisis, volatile oil prices and the recession in North America and Western Europe, decreases in the employment rate and lack of consumer confidence. The industry continued to show growth in Eastern Europe, the LAAM region and in Asia Pacific, although the growth in these areas moderated from previous levels and is beginning to show the effects of the credit market crisis which began in the United States and has since spread to Western Europe and the rest of the world. Global industry vehicle sales to retail and fleet customers were 67.1 million units in 2008, representing a 5.1% decrease compared to 2007. We expect industry sales to be approximately 57.5 million units in 2009” (P.57). It is in this scenario of weakening demand and strained cash flows that firms with high operating and financial leverage such as the Detroit Big Three are finding it hard to survive with talk of court sponsored restructuring for the giants of the auto industry to 1
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Ford or GM? survive. Below we tackle the financial standing of two of the Big Three, General Motors
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This note was uploaded on 03/02/2011 for the course BUS 500 taught by Professor Dr.spitz during the Spring '11 term at Deep Springs.

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Exapmle-CARS - Ford or GM? 1 Running Head: Ford Or GM? Ford...

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