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Who Benefits if GM and Chrysler Go Bankrupt? | PowerOptions Web Log
The fears of an imminent bankruptcy for both General Motors (GM) and Chrysler are already having effects on their sales numbers. In March, Chrysler experienced a 39% decline in sales, GM experienced a 45% decline in sales and Ford Motors (F) experienced a 41% decline in sales. Overall, the number of units sold currently stands at 9.86 million units on an annualized basis. This pales in comparison to the yearly average of 16.8 million units sold in the last decade. Ford Motors (F) stands to gain substantially from a demise of Chrysler and GM. Ford has already benefited from GM’s woes, it gained about 20% of the market share lost by GM in 2008. Ford Motors is the only viable car manufacturer in the United States. Considering all of Ford’s challenges, Ford believes that it will return to profitability by 2012 and that they will not need bailout funding from...