Network Metals LLC

While President Obama seems to have indicated that bankruptcy is a possibility for GM and Chrysler, the real question for domestic auto parts manufactures is whether or not the UAW will continue to have a stranglehold on American car producers, and whether laws dictating American cars must be produced in America will remain in place over the long haul. If, say, GM and Chrysler were suddenly allowed to move production of certain fleets to other countries, US auto parts manufactures would have to adjust to becoming at least partial exporters. They would certainly have a technological advantage over foreign auto parts manufacturers, and would be able to sustain exporting their products, but it would take away the emphasis on Midwest locations for these companies. They might end up moving toward the coasts. But US auto
companies manufacturing certain fleets elsewhere, while still unlikely for the time being, is a situation that could emerge in the long term - if the archaic laws regarding the UAW and domestic production were to be changed or restructured.

There have been rumors floating around, resurrected from summer 2007, that BHP (NYSE:BHP) is considering taking over Alcoa (NYSE:AA). Obviously this would be huge news; we wouldn’t be surprised to see Alcoa sell off downstream business and just focus on mining and smelting.