General Motors and Chrysler are both in danger of filing for bankruptcy in spite of the government loans, according to Standard & Poor's review of the global automotive industry and reported in The Financial Times.

Indeed, GM president and COO said last week the company would run out of money if it did not get the $5.4 billion second installment on the $13.4 billion rescue package.
S&P cited continued weak sales and the short time frame in which the automakers have to deliver their turnaround plans for its findings.

Meanwhile, Chrysler is busy sealing up its alliance with Fiat, which is to take a 35 percent stake, but it is hard to see what they bring each other.

Fiat has been bleating about its financial woes and recently cut its earnings forecast and cancelled its dividend while S&P cut its credit rating back to junk status, according to Bloomberg News.

And Chrysler ...

Peter C.T. Elsworth