By David Lucas,

The Detroit 3 are having a really hard time staying around these days in this terrible economy. People are worried and are not spending the money they used to be. People are very uneasy on buying new automobiles and this is destroying the American auto manufactures. GM and Chrysler are seen as worse off then Ford but they are all making their way towards bancrupcy. So far however the government has been shelling out tax payer bailout funds to keep them floating.

The argument is that if GM or Chrysler or Ford go bankrupt they are not going to come back from it. When a person buys a car it is a fairly big purchase and usually a long term commitment. With this long term commitment comes the fact of warranties and services of the vehicle. If they go bankrupt then the customer will be extremely turned off to buying a car that may not have its warrenty valid.

It is also argued that bankruptcy would not help the automakers in the way on increasing income. And it would help in getting any of their new products off the road. It would only help cut debt.

Some argue it would change the entire world. GM is a global company and supplies jobs and products all over the world. If they were to go bankruptcy it could effect the whole world.

http://www.usnews.com/blogs/flowchart/2008/8/22/how-bankruptcy-would-wreck-gm-and-chrysler.html

http://ezinearticles.com/?GM-Bankruptcy?&id=85519