White House

These consequences does not mention something also likely to happen and which relates to the mood of the population and of the American corporate sector. If the fall of at least one of these companies, this could result in panic and negatively influence the expectations. The importance of changing expectations and restore confidence to consumers and businesses is vital to the recovery of the American economy. And a data key to understand this is related to the rate of household savings, which has doubled in the last time product of fears about the economic context. Thus, the more the American economy of consumer needs, these give back frightened by what might happen.

To avoid collapse, automotive three are requesting financing from the Government by $25 billion to survive until 2010. Although there are those who say that the $25 billion would be insufficient to cope with the problems that have these big three companies. Difficulties that have automotive companies to achieve a reduction of costs as quickly as possible (in part by the characteristics of the sector), do have these large liquidity requirements to be able to stay in operation. Additional information is available at Hyundai. It is this imperative need obtain financing that three companies are more United than ever to make lobby in Washington requesting that Congress approve such support for the sector. At the moment, they only found resistance from the White House, both Republican lawmakers and some Democrats. One of the few who support help for the sector is the President-elect, Barack Obama.

While the rescue is still discussing, there are estimates of the potential costs that the crisis in the sector would have. Some specialists have estimated the economic cost of a possible fall of these three companies in $175,000 million, that is, seven times more than what they are asking to avoid falling. If analyzed from the point of view of the cost and the benefit of save to the main companies in the US automotive sector, it is clear that there is much room for discussion.

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