By Angelo Orlando Jr.Ford sales dropped 41% in March due to the weakening economy which included a 73% decrease in the sales of SUV’s. Ford also has not met its sales forecasts for the first quarter of 2009 falling short by 26,000 vehicles. Ford is also still continuing to cutback production levels at its Kansas City and Chicago plants. This decision may lead to job cuts in these locations. With the fear of bankruptcy for other automakers such as GM or Chrysler, some potential consequences due to bankruptcy will have a large effect on the financial health of our economy. These two automakers, which have already received $16.4 billion in loans, are under review by a federal task force which could force these two giant automakers into bankruptcy. Some possible consequences of a GM or Chrysler bankruptcy are that the resale values of the automakers vehicles could drop 50%. Another consequence would be that auto prices could spike as a result of a bankruptcy as well as incentives on new cars could be less appealing. For investors, a bankruptcy could also affect them in negative ways as well. A GM or Chrysler bankruptcy could wipe out the current debts of the automakers and investors would loose all their investment in the automakers.
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