Auto Bailout

[dragons08]

I was just reading something and it said GM and Chrysler had to submit their proposals of how they will cut spending and a way they will improve their company in order to get the government money. What I don't get is didn't GM say they didn't know if they could last til end of year (end of 08), and definitely couldn't make it through January. So doesn't this make the automakers liars and just fooled the American government?

Or did they give them some money?


Discuss.

[svhorns]

Inside peanut butter... outside jelly...

[DrEdward]

I was just reading something and it said GM and Chrysler had to submit their proposals of how they will cut spending and a way they will improve their company in order to get the government money. What I don't get is didn't GM say they didn't know if they could last til end of year (end of 08), and definitely couldn't make it through January. So doesn't this make the automakers liars and just fooled the American government?

Or did they give them some money?


Discuss.

GM was handed some funds as a "bridge loan" to get them through the end of 2008 and the first of 2009. It is evident that they are certainly going to want more. While the unions are certainly problematic for GM at this point, the real issue is that consumers simply are not buying vehicles at this time. What a surprise!! Up to about 40% of individual financial assets were wiped out for a large part of the population, incomes substantially reduced, and the threat of unemployment growing. For a solution to the automakers' problems, the loss of wealth and threat of unemployment must first be dealt with. Why no one at the federal level seems to want to face this issue is simply bewildering.

[dragonpants]

GM was handed some funds as a "bridge loan" to get them through the end of 2008 and the first of 2009. It is evident that they are certainly going to want more. While the unions are certainly problematic for GM at this point, the real issue is that consumers simply are not buying vehicles at this time. What a surprise!! Up to about 40% of individual financial assets were wiped out for a large part of the population, incomes substantially reduced, and the threat of unemployment growing. For a solution to the automakers' problems, the loss of wealth and threat of unemployment must first be dealt with. Why no one at the federal level seems to want to face this issue is simply bewildering.

The stimulus plan that is forth coming will work, give more money to the poor who do nothing to help themselves and to pay for it, tax gas at an additional dollar per gallon, not a total of one dollar but an additional dollar and of course tax beef??????
Who does these two new taxes effect the most? The wealthy, I think not. Wealthy people do not care (from a personal standpoint) if gas is $ or $3 a gallon or if a quarter pounder is $3 or $4 but those buying off the Dollar menu will care a whole lot.

Oh and let the auto makers fail, stop the bailout, crush the union. Toyota and Nissan will come in and buy them up and produce better cars for less money and not pay ridiculous sums for salaries and benefits. It won't happen but they need to fail or file chapter 11 and figure a way out.

[Slim-Rob]

The stimulus plan that is forth coming will work, give more money to the poor who do nothing to help themselves and to pay for it, tax gas at an additional dollar per gallon, not a total of one dollar but an additional dollar and of course tax beef??????
Who does these two new taxes effect the most? The wealthy, I think not. Wealthy people do not care (from a personal standpoint) if gas is $ or $3 a gallon or if a quarter pounder is $3 or $4 but those buying off the Dollar menu will care a whole lot.

Oh and let the auto makers fail, stop the bailout, crush the union. Toyota and Nissan will come in and buy them up and produce better cars for less money and not pay ridiculous sums for salaries and benefits. It won't happen but they need to fail or file chapter 11 and figure a way out.

Oh yeah, let the american auto makers fail, that will help our unemployment :rolleyes:

Do you know how many people would lose their jobs if GM, Chrysler, and Ford went down? Not just GM, Chrysler, and Ford employees. Dealerships, aftermarket companies, bolt makers, etc. GM, Chrysler, and Ford buy parts from other campanies. They buy bolts, seats, radio's, etc. Without the huge contracts from these 3 big automakers, thousands of companies would go out of business.

So yes, lets let the big 3 fail. Sounds GREAT to me...:rolleyes:

[drgnbkr]

Oh yeah, let the american auto makers fail, that will help our unemployment :rolleyes:

Do you know how many people would lose their jobs if GM, Chrysler, and Ford went down? Not just GM, Chrysler, and Ford employees. Dealerships, aftermarket companies, bolt makers, etc. GM, Chrysler, and Ford buy parts from other campanies. They buy bolts, seats, radio's, etc. Without the huge contracts from these 3 big automakers, thousands of companies would go out of business.

So yes, lets let the big 3 fail. Sounds GREAT to me...:rolleyes:

If it means restructuring under bankruptcy so that they can organize in a way to be competitive with the Japanese car makers, then bankruptcy is a very sound option...actually closing and everyone losing there jobs is not what is being discussed, although in it's current configuration, the big three aren't going to be selling many cars, so the result may be the same.

[Slim-Rob]

If it means restructuring under bankruptcy so that they can organize in a way to be competitive with the Japanese car makers, then bankruptcy is a very sound option...actually closing and everyone losing there jobs is not what is being discussed, although in it's current configuration, the big three aren't going to be selling many cars, so the result may be the same.

Agreed. BUT when ALL automakers are down 30%+ on sales, there is not much you can do. GM is restructuring a lot. Chopping off all companies except Chevrolet, Cadillac, GMC, and Buick, with all others on hold. Buick and GMC will most likely be cut next, and Pontiac is still hanging in there but they are in limbo. No new designs, will cut back probably to just the G8, solstice, and i think 1 other vehicle.

[drgnbkr]

Agreed. BUT when ALL automakers are down 30%+ on sales, there is not much you can do. GM is restructuring a lot. Chopping off all companies except Chevrolet, Cadillac, GMC, and Buick, with all others on hold. Buick and GMC will most likely be cut next, and Pontiac is still hanging in there but they are in limbo. No new designs, will cut back probably to just the G8, solstice, and i think 1 other vehicle.

I understand, but until they get their labor costs in line they will not be able to compete with the Japanese and Koreans. The wages and benefits as presently configured would sink any business. Now is the time to get efficient with their labor costs, while they are being helped out by the ever more generous federal gov...