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"Analyst Predicts US Automakers Could Go Bankrupt This Decade    A recent research report published by UBS Warburg contends that if current trends in the automotive industry continue, GM or could go into Chapter 11, or could be dropped from DaimlerChrysler, the Dow Jones newswires reports.   Saul Rubin, auto analyst at UBS Warburg, would not indicate which company is the most vulnerable, but said bankruptcy could overtake any of the three in the next five to ten years. He did say continuing current strategies and trends combined with a moderate performance in the equity markets would push Ford to the brink. A weakening in Mercedes business combined with a change in management at DaimlerChrysler, he thought, could lead to the ejection of Chrysler from DCX. In his forecast for GM, Rubin said declining equity markets combined with general deflation and double-digit health care inflation over a number of years would be insupportable for GM.   The Big Three have adequate liquidity now, but carry a heavy debt in a low to non-growth market. Rubin also predicted that the market share of the three automakers would slip to 50 percent after a high of 90 percent in the late sixties due to stiff competition from foreign automakers. Rubin also predicts that heavy profits from light truck sales, which have shored up the U.S. automakers, will be siphoned off by foreign competitors in coming years.   Mazda Announces Recall for Fog Lamps   Due to faulty wiring in some fog lamp units, has announced a recall of 78,505 vehicles in Japan and 96,000 vehicles overseas.   There has been one report of a fire in the bumper caused by the faulty lamp. Included in the recall is the Mazda 6 sports sedan, MPV minivans built between May 1999 and February 2003, and Miata roadsters built between December 1997 and February 2003.   The front fog lamp in all three models was improperly wired. The Mazda 6 may also have a faulty brake oil tank that could fail to illuminate the brake light.   Environmental Report Endorses Diesels and Hybrids   The Pew Center on Global Climate change issued a report saying U.S. automakers could cut current levels of greenhouse gases nearly in half by utilizing technology to develop more fuel-efficient models. New technology for cleaner diesel engines and hybrid vehicles could cut gasoline use by 50 to 100 percent by 2030 without reducing vehicle weight or performance, the report said.   According to the report, the U.S. generates more greenhouse gases than any other nation except China when all the cars, trucks, airplanes and ships emissions are totaled. Vehicles used for transportation account for one third of the total. Major companies including Toyota Motor Corp, BP Plc, and utility company PG&amp;amp;amp;E are working with the Pew Center on strategies to address climate change.   The report called for a cap on emissions of carbon dioxide, which scientists link to global warming. The White House rejected an earlier cap on carbon dioxide in favor of voluntary industry efforts.   Existing technology could boost fuel economy for new cars and light trucks by 25 to 33 percent over the next 10 to 15 years, according to the report.   Currently the average fuel economy of new U.S. vehicles decreased from 25.9 mpg in 1988 to 24 mpg in 2002, driven by the low MPG numbers of SUVs. Automakers resisted higher fuel standards, saying it would trade the safety of the SUVs for fuel economy.   GM Workers Finish Assembly at Tornado Damaged Plant   GM autoworkers completed a 14-hour effort to finish 400 SUVs left on the assembly line when a twister knocked out the Oklahoma City plant, the Associated Press reports. The May 8th tornado knocked out the plant&amp;#039;s power station, toppled its cooling towers and skinned the roof and siding off the paint shop. Fortunately, it left GMC Envoy XLs and Chevy Trailblazer EXTs untouched on the assembly line. The vehicles had left the paint shop and were awaiting engines and interiors.   Hundreds of vehicles were damaged in the paint shop or outside as they waited for delivery to dealerships. Now they are headed to the scrap pile.   The twister sent 1,200 workers into underground shelters where they escaped injury during the storm. Two truck drivers unlucky enough to arrive at the plant at the same time as the tornado suffered only minor injuries. When the workers emerged from the shelter they found their own vehicles tossed into a metal mangle in the center of the parking lot.   The surrounding neighborhood was not as lucky \u2014 more than 100 where injured, 35 businesses and hundreds of homes where destroyed \u2014 causing at least $100 million in damages. "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.roadandtrack.com/car-culture/a9883/analyst-predicts-us-automakers-could-go-bankrupt-this-decade/>