Auto Industry Update

GM is planning to GM to cut production by 250,000 by closing about 1/3 of its plants, and most of its assembly plants at some point in the firs quarter.

One wonders what this will do to the supply chain.

Also, it looks like GMAC is perilously close to defaulting. They are still trying to become a bank holding company, and if they fail, it is likely that thousands of dealerships will have no access to credit.