Does GM Bankruptcy Mark Peak US Oil Demand?
Yesterday, as expected, General Motors entered a structured bankruptcy designed to create a smaller, more profitable car manufacturer. The bankruptcy was orchestrated by the Obama administration’s auto panel and was designed to “save” as many auto worker jobs as possible. We are now witnessing the rapid restructuring of the American automobile industry in a world of reduced new auto sales. The challenges for auto sales are both government regulations and credit availability – both of which remain is a state of chaos. President Obama went before the American public mid-day on Monday to describe the auto industry developements and in an attempt to educate people about the implications of the bankruptcy moves. We were struck by his bold statements about the future, some of which he alread had baked into the equation but without announcing them to the public. One statement was that GM’s share of cars sold in the US in the future would rise. That is likely true since one of the restricition
