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Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: circlew (Dec 02, 2008 4:38 pm) I think GM could go in with a "preapproved" bankruptcy and get it done in less than a year, but it would be difficult. Lots of Chapter 11's drag out for several years. It's been 3 years for Delphi. Of course, if GM goes banko, Delphi will liquidate. Bloomberg |
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What happened to $25B?? Humbled and fighting for survival, Detroit's once-mighty automakers appealed to Congress with a retooled case for a bailout as large as $34 billion Tuesday, pledging to slash workers, car lines and executive pay in return for a federal lifeline. GM and Chrysler said they needed an immediate cash infusion to last 'til New Year's, and warned they could drag the entire industry down if they fail. Well, we can't let that happen. Bring it to and even $50B...that should do it until January 20th. I'll make a call now so consider it done!  Regards, OW |
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Replying to: cooterbfd (Dec 02, 2008 5:19 pm) Yes I remember that part of the UAW contract. Question is, where will GM get the $11 billion to give the UAW? I believe that was only for health care. Not sure if the retirement is fully funded and not available. Or is that part of the $66 billion that GM owes? I would think all these little billion dollar details would be in their proposal.
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Replying to: fezo (Dec 02, 2008 5:29 pm) Regards, OW |
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Replying to: circlew (Dec 02, 2008 5:39 pm)
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Replying to: fezo (Dec 02, 2008 5:42 pm) I mean really, between "SS" Chevies and Sport/Lux Cadillacs, exactly where does Pontiac fit in anymore? It's competing with Chevy and Caddy....I think I read somewhere that GM's biggest competitor is itself sometimes. Why are you making a buyer decide between a G6 and a Malibu, hmmm?
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that's the GM union headcount only. Then add salary and contract workers. Then add the 350,000 working at dealerships. then add the 100,000 working at Delphi Then add a million working at suppliers to GM and delphi. Then add the million that have jobs supporting the million that work supplying GM. I fully expect coastal people to be against the bailout. They don't have any direct benefit from GM surviving. They just created a lot of the mess that has hurt the auto industry, like Wall St collapse and subprime defaults.
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Replying to: gagrice (Dec 02, 2008 5:37 pm) The $11 billion for VEBA, not sure if thats included in cash on hand, debt, or already been paid. |
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Replying to: bpizzuti (Dec 02, 2008 5:56 pm) This is a good point. GM has always had a flawed business model, in that they've always tried to have each division cater towards the 'mainstream' market (with the exceptions of Cadillac, Saab, and Hummer). A company as large as GM was (and still is, for now) should have one mainstream brand, with each of the others catering specifically to a certain niche. It would make sense for Chevy to continue as the 'mainstream' line, and Cadillac as the luxury line. I'm not sure whether or not it is worth it to have a full brand for various niche markets, but if they intend to do so here's my suggestion: Saturn- return to the entry level market, concentrate on solid small and midsize cars that are cheaper than Chevy; GMC- commercial trucks; Pontiac- sports cars (would probably require the Corvette as a flagship). Buick- rental/fleet cars (based on older Chevy models so as not to dilute the mainstream brand, but keep development costs low). The way things are going, I think GM is rather hopeless. A bailout loan will just allow them to circle the drain a bit longer. Will that soften the blow to the economy in general, or just delay it? |
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If anyone should bail out the big three companies, it should be big oil. Big oil has obscene amounts of capital, and they would be in deep trouble if the auto companies go under. They could use even a small portion of the record profits that they get every quarter, bail out the big three, and still have obscene profit margins.
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