Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
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
|
...and this is for GM and C only! Ridiculous! The Big Three executives spent two consecutive days on Capitol Hill this past week pleading for as much as $34 billion in loans to help their industry survive. But they made clear that $15 billion would be enough to keep them running until the end of March 2009. GM has indicated it needs about $10 billion to last that long, while Chrysler chief executive Bob Nardelli said his company would need $4 billion. Ford's chief executive, Alan Mulally, said Ford did not anticipate needing any federal cash during that period. 3 Months = $14B Regards, OW |
|
|
Replying to: kdhspyder (Dec 06, 2008 3:40 pm) Unfortunately there likely isn't enough current US plant capacity at Ford and the transplants to meet all of the lost GM volume. So it will take imports and they won't be using those US vendors. |
|
|
Replying to: berri (Dec 06, 2008 5:25 pm) Well, one of them just might! If GM dies, I'll probably have a massive stroke or heart attack!!! 
|
|
|
Replying to: lemko (Dec 06, 2008 5:35 pm) Why? Hasn't it occurred to you that Cadillac might do better without the bloated GM corporate albatross around its neck? |
|
|
I don't have enough financial experience to know if this is doable. 1 - GM spins off only Cadillac into a smaller company. 2 - GM spins off a Chevy company with only the best non-Cadillac cars and trucks 3. The remaining GM company has lousy vehicles and huge debt. It declares bankruptcy and goes into Chapter 7/liquidation. The result: a competitive Cadillac company and a competitive Chevy company, neither with any debt.
|
|
|
Replying to: berri (Dec 06, 2008 5:25 pm) That is absolutely FALSE. We will sell 6,000,000 less cars this year and probably the next couple years. GM did not make 6 Million cars. If anything a GM total liquidation would boost Ford into a very good money making position. It would also help the imports that do indeed buy parts from the same suppliers as GM. It might be what Delphi needs to pull out of the doldrums and C11. More people filed for first time Unemployment this week than the total GM workforce in the USA. You also forget the most important advantage to a GM liquidation. There are people with money that would love to take over some of the GM nameplates and continue to build those cars. They may even use UAW labor if they can get contracts that don't bury them before they start. Kerkorian one of the big stockholders at one time is probably still interested. No one in their right mind would buy them in their current condition.
|
|
|
Replying to: tlong (Dec 06, 2008 7:23 pm) That is not a bad idea if the UAW contracts in their 2200 pages would not put a monkey wrench in the works. And would the retirees from Chevy & Caddy have a hold on the company? Some plan like that where a new owner comes in and starts hacking all the dead weight from the company. You know like Congressman Dingell's wife that is a high ranking GM executive.
|
|
|
Replying to: gagrice (Dec 06, 2008 7:32 pm) Yes, I don't know if the contracts would pass along or if they could be "GM-only" contracts. Then if GM bellies up the pension guarantee corp of the government takes over. The current GM shareholders would get new shares of Caddy, new shares of Chevy, and remaining GM's value would drop to zero. The remaining factories and assets of the remaining GM corp sold off to pay as much of the $66B in debt as possible. The new Caddy and Chevy companies would not have the GM name any longer, which would be a good thing. Then with new leadership in both of those companies, they could rise from the ashes and really kick butt. |
|
|
Replying to: lemko (Dec 06, 2008 9:31 am) You are the one predicting the demise of America. Being weak-kneed in the face of adversity is not the American way. Just suck it up and get going. Doom and Gloom is for losers and laggards. |
|
|
Replying to: berri (Dec 06, 2008 5:25 pm) First, Ford and Toyota have all the truck capacity the country will need even if GM and Chrysler went under. Ford especially would be a HUGE beneficiary of this since it was making nearly 1 million units as recent as 3 yrs ago but now is likely to be making half that amount. Second and this is why GM will not disappear completely. GM has plenty of good products and capabilities and production facilities. If it did go BK they wouldn't just lock the doors and tear down the facilities. The BK court likely would liquidate the company but that means selling off the excellent assets to other companies or to new owners, such as Ford for example or very likely the Chinese ( Lemko's hair starts on fire ). Those facilities and most of the jobs remain in place still making Ford Silverados and Malibus, Chinese Cadillacs, German Corvettes, etc. Rich Wagoner might even buy some of these back distressed assets so that he could run another company into the ground. I can see Chrysler disappearing completely and it's production facilities closing and the country will not miss the shortfall in supply. GM and Ford wil pick it up instantly and use some of their excess currently non-functional supply. |
|
You are here:
Forums
Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
