Why might auto industry get federal bailout?
General Motors reported a $2.5 billion loss in the third quarter and warned Friday that it could run out of cash in 2009 if the U.S. economic slump continues and it doesn’t get government aid. GM also said it has suspended talks to acquire Chrysler. While it didn’t specifically name the automaker, GM said it was setting aside considerations for a “strategic acquisition.” And Ford said Friday it lost $129 million in the third quarter as the struggling automaker burned through $7.7 billion in cash and set plans for more job cuts. Ford said it will eliminate about 2,260 more white-collar employees in North America as it battles weak demand, the credit crisis and the worst economic downturn in decades. On Thursday, top executives with GM, Ford and Chrysler, along with the president of the United Auto Workers, made their pleas to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid on Thursday for a rescue package. Detroit’s automakers may end up getting taxpayers’ money for a s
