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Automotive News & Views United Automobile Workers of America (UAW)
16738 messages, Last post on Dec 03, 2009 at 10:07 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: dallasdude1 (Nov 20, 2008 10:07 pm) |
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Replying to: circlew (Nov 21, 2008 11:58 am) Isn't that what got them into this mess? |
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Replying to: michaell (Nov 21, 2008 12:09 pm) Regards, OW
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Replying to: dallasdude1 (Nov 20, 2008 10:15 pm) Actually, I own three, and I'll probably add a fourth one in the very near future 
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Replying to: roadburner (Nov 21, 2008 1:16 pm) 
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Replying to: circlew (Nov 21, 2008 12:26 pm) Ford, in my opinion, seems to be the closest to having a strategy mapped out. Perhaps that is because they are the only one to have made a significant change in their management structure in the past year or so, bringing on board a CEO who has been there and done that in terms of turning companies around. Bringing over European models (but made locally, unlike the Astra and G8) is a step in the right direction. Yes, they will still continue to build trucks and SUV's - the market demands that they do, just not in the numbers of the past. Nardelli? He got ran out of his job at Home Depot. Wagoner? He does not strike me as the right man for the job of turning GM around
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Replying to: fezo (Nov 21, 2008 1:35 pm) Actually, I'm thinking more along the lines of an M Isetta:  
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This is the plan that would make the most sense. Hopefully, this will happen. U.S. President-Elect Barack Obama is said to be considering a ‘prepackaged bankruptcy’ plan for the Detroit Three automakers. Prepackaged bankruptcy is a strategy whereby a detailed plan for restructuring and creditor settlements are established before a Chapter 11 bankruptcy filing is initiated. Settlements with creditors and renegotiation of contracts takes place out of court, ahead of the actual proceedings. A prepackaged bankruptcy can be completed quickly, and avoids the potential chaos and uncertainty of a Chapter 11 filing. It’s sometimes viewed as a ‘best of both worlds’ solution, because it provides the benefits of bankruptcy with a predetermined plan for the company’s survival. The strategy would enable GM to eliminate the union obligations that make it uncompetitive, say proponents. “It creates the environment to deal with GM’s problems but limits government financial commitment,” bankruptcy lawyer Mark Bane of Ropes & Gray in New York told Bloomberg. James Harris, President of Seneca Financial Group in New York, said a ‘prepack’ deal combined with a small amount of financial aid from the government — rather than $25 billion — is the most logical path. “I look at the Democrats that say these businesses are very important to the economy, and I agree with that, so the logical step is a prepack,” Harris told the financial publication. Obama’s eloquent way with words might also enable him to explain such a strategy to the American people, thereby preventing a massive drop in sales. Ford and General Motors have repeatedly said traditional bankruptcy is not an option, because consumer surveys show people would not buy a car from a bankrupt company. But a prepackaged bankruptcy facilitated by the U.S. government could allow GM to continue operating and instill a sense of confidence in investors and consumers. Regards, OW
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Replying to: chikoo (Nov 21, 2008 11:50 am) I guess we really do not know, but many in the business feel that if any go into chapter 11 all 3 do. And if they do it is believed that the public will not buy from a company in bankruptcy. Sales will plummet taking the auto suppliers with them. The same suppliers supply the domestically built imports and therefore the experts (CAR-Center for Automotive Research) says auto production will come to a standstill throughout the US. This will drive the loss in jobs everywhere. Now the above is what CAR says they believe will happen. http://www.financialpost.com/story.html?id=935684 Now we can just not believe the experts but it sure does sound dire. And in my extra opinion the day the US plants shut down the importers will just start importing vehicles from overseas because they have their own suppliers (negligible exports from US). The plants here will probably stay shut for years keeping the home plants in business. There will be no real reason to build vehicles in the US unless the dollar ratio makes it more economical.
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