EXPERT: CARS FLAT ‘TIL 2015

GM, Chrysler and Ford will struggle for survival until 2015 – or even longer – even if they are granted a $34 billion federal bridge loan, according to a leading auto industry think tank.

David Cole, the head of the Center for Automotive Research, believes that a fatal combination of recession and the automakers’ manufacturing problems will make a rapid turnaround impossible.

“I think we are looking at about 2012 until the market improves and then say another three years after that for the carmakers to take advantage of it to return a profit and pay the government back,” Cole said.

GM and Chrysler want immediate loans to forestall possible bankruptcy, while Ford is asking for a $9 billion credit line. GM wants $12 billion in loans – $4 billion immediately – and Chrysler wants $7 billion.

Cole said, however, that even with such a large government handout the carmakers are virtually powerless to persuade consumers to buy cars as the economy is suffering.