FOR IMMEDIATE RELEASE
Edmunds.com Analyzes Automakers Restructuring Plans
SANTA MONICA, Calif. — February 17, 2009 — As General Motors (GM) and Chrysler submit their restructuring plans to secure additional government loans, Edmunds.com offers comment on the plans and the state of the automotive industry at large.
"The most important issue is not what the automakers are going to do to cut costs, but rather what the government is going to do to stimulate car sales," stated Edmunds.com CEO Jeremy Anwyl. "No automaker is viable under the current market conditions, and so far the spending package appears to spread money too thin to actually make much of a difference in any one area."
"The plans don't contain many surprises: The core of the loan request is that each company still has a viable business that is going through some cash flow issues," observed Edmunds.com Senior Analyst Jesse Toprak. "In truth, expecting Chrysler and GM to create massive restructuring plans within a matter of a few weeks during some of the most volatile market conditions in history was simply not realistic."
"Whether these companies obtain additional government loans or file bankruptcy, taxpayers will pay; it's just a matter of how much and what destruction will be left in the wake," remarked Edmunds' AutoObserver.com Senior Editor Michelle Krebs. "No matter how we look at it, U.S. taxpayers are shareholders in Detroit automakers."
"Unfortunately, the plans seem to fulfill the prophecy of the original critics who said the automakers would be back asking for more money again and again," noted Edmunds' AutoObserver.com Contributor Bill Visnic. "The executives have believed all along that they are on the right track in terms of product development, so the plans don't reflect changes that are dramatic enough to satisfy a largely bloodthirsty audience."
About Edmunds.com, Inc. (http://www.edmunds.com/about/)
Edmunds.com, Inc. publishes three Web sites that empower, engage and educate automotive consumers and enthusiasts. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value® , is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in January 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in February 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.