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Automotive News & Views Does America Even Need Its Own Automakers?
1788 messages, Last post on Mar 03, 2009 at 2:18 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: dave8697 (Feb 26, 2009 2:41 pm) It's not 1941 anymore... |
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Replying to: bpizzuti (Feb 26, 2009 5:23 pm) I now think GM should probably be reorganized through bankruptcy or an equivalent process facilitated by the government (of course, the same thing should have been done to the big banks, such as Citi. Somehow the FDIC managed to do this seamlessly with Wamu, turning it over to Chase, with the losers being the stock and bond holders of Wamu). I assume the first in-line for any remaining assets would be the 13+ billion that the government loaned them. I just don't see the sense in loaning them $30 billion, so that they can sell maybe 10 million cars over the next 5 years (that is about $3000 per car).
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Replying to: jeffyscott (Feb 27, 2009 7:53 am) There is NO way GM will ever pay back what they borrow. Money down the drain. That $3000 is about what the legacy costs per car will be with GM selling half as many vehicles. I would be surprised is GM can maintain even 15% of the market share at their current rate of sales. The model they are showing the Feds is not going to make them any money. The $70 billion they owe to others is also as good as lost. Our $30B would have them owing a cool $100B by the end of this year. It is not worth it for only one vehicle the Obama administration likes, the Volt. A vehicle that will lose money for years to come.
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Replying to: gagrice (Feb 27, 2009 8:16 am) I agree with you. The first loan of, what was it, $17 billion dollars, was around 5 times GM's net worth, if I remember correctly. And now they want more. I would like to see the details of how they plan to pay that back, and what assumptions go into that pay-back plan. |
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Replying to: gagrice (Feb 27, 2009 8:16 am) I'm thinking that the $100B estimate of bailout costs in December is looking really low. |
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Replying to: dave8697 (Feb 26, 2009 2:41 pm) 1) we are fighting 2 wars already, anything more than this, we can have all the machines we can produce but not enough bodies to handle them. If we ever have to fight someone in the near term, it will just be dropping bombs and sending missles. 2) have you ever been inside an auto manufacturing plant? Nothing in there is super duper complicated that no one knows how it works. In fact, all of them are quite similar in terms of the machinery being used. And no, it cannot be converted into making weapons, unless you want to drop corollas from 30k ft 3) skynet does not exist, otherwise we'll be seeing more summer glau.....
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Replying to: nwng (Feb 27, 2009 9:50 am) We'd be seeing more Chrysler products too. No wonder they're going out of business...when Skynet was destroyed, it destroyed Chrysler's best customer. 
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Replying to: nwng (Feb 27, 2009 9:50 am) Great idea. Fill all those unsold GM and C vehicles with explosives and drop them on the enemy. |
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Replying to: gagrice (Feb 27, 2009 10:40 am)  .
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Replying to: gagrice (Feb 27, 2009 10:40 am)  H1's for the battlefield and H2/H3 for LR Bombings. 
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