Struggling automakers’ finances could affect future supply of used cars in New Jersey

The government currently has a stake in both Chrysler and General Motors, and while they are optimistic that GM could go back on the stock market by next year, the continuing troubles for both firms could affect the supply of used cars in New Jersey.

A reduction in sales for the past year has led to both companies cutting down on production of new cars, and White House officials say that General Motors may be able to even break even this year, if the industry as a whole can sell 10 million cars, according to BusinessWeek.

Demand could increase for used Chrysler cars in New Jersey, because “[the firm] is undertaking a remarkable transformation, but it will take time for new vehicles to come out,” Ron Bloom, a senior adviser to the White House, told the magazine.

If the $65 billion already given to the automakers doesn’t provide them enough stability to remain solvent, the Obama Administration will not recommend future financial aid, according to a New York Times report.

Neither will auto parts suppliers, which some analysts have said will go bankrupt because of reduced demand for new cars, noted the newspaper.