USA: Analyst says one of Detroit's Big Three could go bankrupt
If today's trends hold throughout the decade, one of the American car companies could go bankrupt, UBS Warburg analyst Saul Rubin has warned, according to The Car Connection (TCC) website.
Rubin reportedly said each company has problems dogging it even as sales maintain near-record levels: Ford could be pushed over the brink by performance in equity markets, while weakness at Mercedes-Benz could force a sell-off of Chrysler.
Deflation and soaring health care costs could sink General Motors, Rubin added, according to the TCC report.
The website said the analyst is also concerned about the addition of 1.6 million units of car production into a market already saturated by current brands [Nissan opened a new 400,000-vehicles-a-year plant in Mississippi just this week] and expects the American brands' market share to shrink to just half of the US market by 2010.