Why is that the companies in such financial turmoil, Microeconomics

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Why is that the companies in such financial turmoil

Problem

Read the articles below:

GM CEO says Ford/UAW agreement won't work for GM By John Crawley, Reuters:

Task Force Open to Auto Aid, Avoiding Bankruptcy, Rattner Says.

After reviewing and analyzing the articles, post your analysis and comments to the following questions:

• What happened to GM? How about Chrysler?
• Why is that these companies in such financial turmoil?
• Do auto manufacturers' problems have something to do with its production function, costs, or both?
• Is there the way out of the problems?

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Microeconomics: Why is that the companies in such financial turmoil

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