Analyst: Chrysler in biggest danger of Detroit’s Big Three...
The U.S. auto industry's weakest player, Chrysler LLC, may have to file for bankruptcy or sell its storied Jeep and Dodge Ram brands as early as next year, while rivals General Motors Corp. and Ford Motor Co. are likely to get through the rough patch and turn a profit in 2010.
GM shares slid to a 54-year low last week after Merrill Lynch auto analyst John Murphy wrote in a note to investors that a GM bankruptcy "is not impossible if the market continues to deteriorate and significant incremental capital is not raised."
But JPMorgan auto analyst Himanshu Patel said the situation at Chrysler LLC is far more perilous because it has limited assets to raise cash and is more heavily reliant on trucks and on the North American market.
Chrysler will burn through $4 billion this year and could be forced to file for bankruptcy protection or sell off parts of its business in the second half of 2009 if industry conditions don't improve, he said.
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