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2010 07

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GM talks with Europe break down, Chrysler future on hold

The US auto industry faced an uncertain future on Thursday after talks with Germany on the fate of General Motors’ (GM) Opel unit collapsed in acrimony and as Chrysler waited for a court to decide its future.

Both GM, the largest US auto manufacturer, and Chrysler, the third biggest, are being kept alive by massive assistance from Washington but their prospects now depend on further help from foreign partners and governments.

Battered by dwindling consumer demand and bad product choices, the once-mighty icons of the US auto sector are in turmoil. GM appears to be heading toward bankruptcy, a step already taken by Chrysler.

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