The latest repercussion of the financial crisis has been the auto industry. Here's an article from Reuter's regarding the possible break up of the American auto industry. Specifically, the article looks at what would happen to the profitable brands owned by each of the three major manufacturers.
If any of the big three U.S. automakers is forced to sell assets in a liquidation, their brands and patents may attract the most interest, while the manufacturing assets could be a tough sell.
Both General Motors Corp (GM.N) and Chrysler LLC -- currently being kept afloat by billions in taxpayer dollars -- have warned they could file for bankruptcy if they are unable to reach deals with key stakeholders. A bankruptcy for either company is expected to save the stronger and more profitable parts of the companies, such as GM's Chevrolet and Cadillac divisions and Chrysler's Jeep unit, but some parts could be destined for fire-sales or liquidation as the U.S. auto industry grapples with sharply reduced consumer demand.
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by Rob Wildhack
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