Auto News Blog

You know, it is tough — you see all of these innovative new cars, and the fact of the matter is that most of us cannot possibly afford them … or can we? Actually, if you are willing to do some research and buy smart, it is possible to make the current automotive crisis work to your advantage.

You see, right now, car dealers all over the United States — and the rest of the world — are doing anything that they possibly can to beat the deals being offered by their competitors. There are, for once, too many cars and not enough buyers — which means no money for all those dealers. You only have to look at all the recently bankrupt manufacturers to see the depth of the problem.

Right now, it is possible to get new cars for as much as six thousand dollars less than the same models from a year ago. If you are willing to haggle a little bit and check out the dealerships near you in the most problem, you can walk away with a real steal.

The largest car manufacturer in the United States declares bankruptcy as the market opens morning of June 1. The federal comes to the rescue with a $30.1 billion funding to help one of the pillars of the American auto industry through the tough times.

The good assets of the company will end up and be owned by the bond holders, UAW, Canadian government, and the U.S. Treasury Department. The move will give way to the restructuring of the company. Some of the old assets like factories, brands, and dealerships will be under supervision of the court, be closed or be sold.

The U.S. government will be having a 61% stake of GM. Canada and the government of Ontario will get a 12% share in exchange of a $9.5 billion funding.

The bankruptcy is seen by the Obama administration as a way for the car company to rise again from its neck deep financial woes.

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