Tuesday, June 02, 2009

The Car Industry after GM's Bankruptcy

I've nothing to add to all the commentary about GM. I'm looking at the bigger picture.

As I've mentioned before, this could be real trouble for multiple suppliers to GM, as the court could easily void existing contracts, negate payments and debts and create general havoc on an industry that is already in tremendous stress.

Longer term, I would expect a nice uptick in plastic usage in cars, given the Government's tremendous ownership share of the industry (Do you really believe that no government official is not going to use their influence?? They just can't help themselves, it's what they do, it's their inherent nature) as well as the higher mileage targets. Replacing steels and other metals will plastics/composites will reduce weight, although the real increases are in rolling resistance and drag, not weight.

4 comments:

Can Someone Do My Assignment said...

I would anticipate a decent uptick in plastic use in vehicles, given the government's huge possession portion of the business (do you truly accept that no administration official won't utilize their impact?

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Do My Assignment said...

As I've referenced previously, this could be genuine difficulty for various providers to GM, as the court could without much of a stretch void existing agreements, refute installments and obligations and make general destruction on an industry that is now in enormous pressure.