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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
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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. |
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Replying to: gagrice (Dec 06, 2008 7:27 pm) Bottom line, what Detroit’s really after is a bailout that will preserve the status quo and implicitly reward 40 years of inept management, bad decisions and poor quality. It simply doesn’t make sense to throw $34 billion at businesses that are losing $6 billion a month. Like the other Federal bailouts (which I, as a proponent of the Austrian school of economics and free markets, think are fundamentally wrong), a taxpayer-funded bailout would do nothing to increase Detroit’s competitive position. Instead, a funded bailout would serve as a sort of punitive tax on successful companies like Toyota and Honda, just to name two of the most obvious. It would also allow Detroit to come back for more money after they blow through anything given to them now. There are still plenty of strong automobile companies operating in the U.S. making a slew of products ranging from ultra-plain utilitarian models to large-scale trucks and all sorts of luxury vehicles in between. And more will probably come here if they fail. So here’s to the natural order of things and, hopefully, a levelheaded Congress that will let the markets take their natural course and force a shakeout…not a bailout. Here is the rst of the economics lesson. I still vote no bailout. Better to give the money to support best in class companies!!!!! 40 Years Regards, OW |
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"The bailout commitment, in other words, is effectively open-ended, no matter what anyone says. And with the feds so invested in the companies, it will only be a short step for Congress to begin to coerce consumers to buy the cars that Washington prefers. Mr. Friedman, the concerned scientist, is already planning for that day. He said Friday that we'll eventually have to impose a "fee" (read: tax) on cars that "pollute too much" or use "too much gas." http://online.wsj.com/article/SB122852320928184421.html?mod=djemEditorialPage
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Replying to: wevk (Dec 07, 2008 6:05 am) You got your "Greens" in DC just drooling over the opportunity to own a car maker they can mold into an alternative transportation company. Cost is not even considered by this bunch. They will try to force US all into a Yugo that is powered by the Sun with peddles to assist on the long up hill roads. Fortunately we have a Congress that rarely agrees on anything, but when it is lunch time. The buildings at GM will be all rusted out before they can come up with a bailout plan. We will give them a few billion so everyone gets a nice Christmas. Then it will be on the shoulders of the new team to get the job done. I would be looking for a new job if I worked for GM or Chrysler. The UAW workers at Ford may survive if they back off on blocking progress. For those that did not see it. This IS progress, and it could have been built in the USA, but for the UAW. http://info.detnews.com/video/index.cfm?id=1189 |
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When the big guys become so BIG and it can kill the economy to let them fail, then they are too big. Today companies (Banks, manufacturers) are just plain too big. This Bigness does not bring a better life for the people. There is a point where bigger and bigger deos not provide any real benefit. Not to the shareholders maybe only the CEO's - then when there is trouble the people need to bail them out, wth our tax dollars. The globalization at any costs is not working. As Michael Moore was saying on Larry King Live - we need to bail them out but the people will need to tell the big three what kind of vehicles they will be doing. I say we need to bail them out but then make sure it never happens again. |
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Replying to: berri (Dec 06, 2008 1:43 pm) So I guess you never expect much out of a new president and Congress right? for they have the whole country to change and only 4 years? And Wagoner has had a single corporation and 14 years. 
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| Is Wagoner being told This Way Out? | |
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Replying to: kdhspyder (Dec 06, 2008 3:25 pm) Ironic that the one who arguably had nothing to do with this mess is the one who can clearly see the problem...another reason why I believe that Ford will be the last man standing. |
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SUVs at altar, Detroit church prays for a bailout DETROIT, Dec 7 (Reuters) - With sport-utility vehicles at the altar and auto workers in the pews, one of Detroit's largest churches on Sunday offered up prayers for Congress to bail out the struggling auto industry. "We have never seen as midnight an hour as we face this week," the Rev. Charles Ellis told several thousand congregants at a rousing service at Detroit's Greater Grace Temple. "This week, lives are hanging above an abyss of uncertainty as both houses of Congress decide whether to extend a helping hand." Local car dealerships donated three hybrid SUVs to be displayed during the service, one from each of the Big Three. A Ford Escape, Chevy Tahoe from GM and a Chrysler Aspen were parked just in front of the choir and behind the pulpit. Ellis said he and other Detroit ministers would pray and fast until Congress voted on a bailout for Detroit's embattled automakers. He urged his congregation to do the same. Other Detroit-area religious leaders -- including Christian, Muslim and Jewish leaders convened by Cardinal Adam Maida -- have urged Congress to approve an auto aid package. But the service dedicated to saving Motown's signature industry at Greater Grace Temple was the highest profile effort to mobilize support yet. |
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You'll see in the below the Chicago Tribune is going Ch11. The whole newspaper industry is seeing less advertising $. I'd guess so is every newspaper, and every magazine, and every TV and radio station. Are we going to bail them out too? http://www.marketwatch.com/news/story/Tribune-could-file-bankruptcy-WSJ/story.as- px?guid=%7B71F8BA18%2D2283%2D4844%2D8818%2D6269BB00CF08%7D Or Dow Chemical this morning announced an 11% cut in employment and 20 plants closing. I guess they don't have any lobbyists? Maybe when Dupont and Exxon Mobil cut they can all go for a bailout too? Oh, I can't forget the homebuilders. Let's bail them out too. And I hear income in Vegas is down; we can't let that area which is already suffering large home price decreases to suffer more. How about bailing out all of Nevada? |
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