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See for at least one of the auto makers.
Seems more and more likely will for be able to make it out of this crisis alive at the moment it looks like -- can let's -- -- From Ann Arbor, Michigan Jean Jennings she's editor in chief of automobile magazine -- -- I don't live well there's some -- General Motors is a lot of Chrysler news today it looks forward because Ford is coming out with earnings tomorrow or losses as -- work.
And we know it's going to be a brutal loss but.
At the help the -- how can you continue to lose billions of dollars and still say it will come out of that survived.
Well I think it's about.
They early the early moves as they engaged to amass money and focus their attention on.
You know one core goal that was to you know push the blue oval so they -- a lot of stuff in advance of may ask a lot of money.
We know they're burning through a billion a month still.
But we expect those losses they will be bad but they'll be a lot less than they were last quarter was like a billion and a quarter last quarter.
It should be collected recorders in the Billie Jean what's -- you know they still have money they I think they have money enough that they are now saying.
If if there's a bankruptcy everyone knows is is -- -- put the hurt on the supplier community if one of the others go bankrupt.
There Ford is saying that they would pay out money to loan their suppliers.
Because they know they'll be in trouble so they are -- there.
You know their bank accounts right now to get ready to help out.
Well so they've got a massive cash burn rate yet they have enough to loan money I have yet expect that doesn't make sense to me.
Think they're still they're selling cars -- market -- has gone -- I mean things are down.
And this is the new modern world of finance and I am sure you know more about it than do you how how.
I will say this much that we have General Motors for example.
Announcing today that they are -- -- -- what eleven plants now it there many here.
Slowing down to just there almost at a grinding halt here and and well they're -- by the way old cars you shouldn't be making more cars you can they have no place to put the cars they're making so they have to -- -- 55.
Thousand people will be taking temporary pay cuts do they are saying -- news conference that is just happening that this was internally decided to idle the plants.
Not necessarily motivated -- idea auto task force from the Obama administration -- believe that team.
I do believe it I shouldn't say -- you know.
They know that they have to stay there tried to get ahead of what the government expects because clearly what they.
They gave the government in in terms of plans was not enough.
They got rid of Rick Wagner so now Fritz Henderson knows he's gonna have to come in Hardin I mean he has to.
Go a lot harder and deeper -- to say it's not motivated by the government of a little to -- yeah that's that's what I'm I'm saying it and by the way forward right now.
It's still up about 2% and it's got to buy reclamation and recommendations from two of the top brokerages have.
They certainly have some tail when you're their stock is up nearly 80%.
Since the start of the year -- we've got some breaking news that I want to tell you about.
The New York Times is reporting that a Chrysler bankruptcy filing could come as early as next week your comment on the I think.
Yeah -- I would not be surprised.
Fiat seems to be all over the map right now and I think I wouldn't be surprised to hear a GM bankruptcy filing as well.
So both of them well I.
You know I I just that's what we're looking I mean that's the reality of the situation.
They need to get rid of a massive amount of debt Ford negotiated its way out of -- you know all of this debt ten billion worth.
-- disabled 500 million in interest now.
GM hasn't done it yet Chrysler hasn't done that yet and there are up against the wall they have to get rid of some of the -- I remember asking you -- want to say close to 89 months ago like I asked why hasn't.
A server is broken up.
Much of Chrysler sold off the pieces and he said I don't know why they haven't done that yet -- that was nearly 89 months ago.
Well I think now looking back there as everything was kind of crumbling.
I really believe that there wasn't anyone interested in buying it at that time were -- not interested but.
The money was tightening up and across the world.
I'm surprised now that there are so many peoples of any potential buyers forward.
Parts of general motors' Saturn Hummer and -- ball OK so -- I just let people know that GM is now.
Gaining in losses here it happened down most of the session by about 43 quarters percent.
Right now we've got it down about five and a 3%.
Five and 3% on.
The indication from the New York Times that Chrysler could possibly file for bankruptcy.
As early as next week if Chrysler and GM go down in fort survive.
Well like I said they -- it the only question is suppliers and that at this it's not the only question is also pension and I think the government's gonna.
Have to come in and protect these pensions they -- not gonna want to be responsible.
For you know the hundreds of billions of dollars of pensions so I believe that the government's gonna have to come back and get some relief there.
Ford should be able to make it through.
You know at.
A survey and we also know that people are buying and looking that -- that are seen Jennings great perspective thank you very much Jean Jennings of automobile magazine tomorrow on Fox Business.
I'll personally be speaking with Ford CEO Alan Mulally 12:30 PM eastern.
About his company's losses they are going to be losses be sure to tune in but I've lasted all of these questions how -- Ford survive.
If Chrysler goes under and if General Motors -- -- and will -- eventually have to ask the government for money all that coming up tomorrow.
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