1/3rd of US auto suppliers risk bankruptcy

US and European auto sales fell again last month.
GM reported total US sales down 27% versus 2007, due to a ‘challenging US economic environment’
Toyota were down 19%, with Lexus sales badly hit, down 25%
Ford were down 13%, and said they ‘expected H2 to be more challenging than H1, as economic and credit conditions weaken’.
Chrysler were down 29%, in spite of their offer to reduce gasoline prices to $2.99/gal for new car buyers.
European auto sales also continued to weaken, falling 6.7%, with the UK down 13% and Spain down 28%.
Chemical company CFOs will also have taken note of the suggestion from accountants Grant Thornton that one third of US auto suppliers could go bankrupt if current conditions continue. ‘Any new production cutbacks will make supplier cash flow problems more difficult to manage’, they warned in their latest Review.