Professor Elam

Yes Ford borrowed $23.5 B at the end of 2006. But Ford admits if sales are under 10 M units, it too will need funds. Read more on how automakers the world over are hurting, Mercedes burning through $24 M a day.

Wondering how this ties to accounting?  Chapter 5 and 6 of Garrison's  Managerial Accounting covers break even. We know break even equals fixed costs divided by contribution margin, sales minus variable cost. None of the auto makers can cover their fixed costs at this overall sales level. If this keeps up, without government subsidy, some automakers will go out of business. This happened in the 1930s, for that matter it happened with Packard and hudson in the 1950s and Studebaker in the 1960s. 

The slowdown in the 1930s took out Auburn Cord Duseberg makers of those luxury cars of that era.