From “Dr. Joe’s Market Diagnosis”, by Dr. Joe Duarte
Ford (NYSE: F) has proven, at least so far, that staying away from government aid can be beneficial if you’re a U.S. automaker, especially when Chrysler is now bankrupt, and the consensus is that its “controlled” demise will be a model for what happens to General Motors (NYSE: GM).
President Obama bought Chrysler some time. But the automaker is clearly still in big trouble, and the implications of its failure, should it come to pass, extend way beyond the U.S. borders, and for more than the obvious reasons.
Chrysler filed for Chapter 11 bankruptcy and will attempt to reorganize its businesses after gaining concessions from labor unions and crafting out a deal with Italy’s Fiat. Yet, if you look at the situation closely enough, you see the potential for more trouble ahead for the company, as well as others with whom it does business. [entire post]