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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: chikoo (Mar 02, 2009 6:44 am) They already know the market-value of their values is not enough to cover their costs. They have years of data on this - losses each year. And BTW, there is no fixed market-value to anything; market-value continually changes 24/7. If D3 sales go gangbusters with the vouchers, it gives them a lease to survive I don't want the government to pay in any shape or form - no vouchers, bailout, loans, grants or whatever you call them. Private investors and banks can use their money., as they have done for many years in many firms. Answer this - why won't private investors put their money into the D3, if the D3 has a chance to turn things around? Investors are putting billions of dollars into money market and Treasuries to make 0.1% or so. Why do you not think they'd invest in the D3 at the low prices they're at, and the chance to make so much money? Basically when the banks, Wall Street and millions and millions of investors don't buy your stock or corporate bonds, the vote is in on viability.
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Replying to: bpizzuti (Mar 02, 2009 7:11 am) So how does a bailout guarantee that the money does not go towards the Korean design cars? |
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Replying to: bpizzuti (Mar 02, 2009 7:11 am) Eh? Come again? With 10K voucher, you can buy a Cadillac for the price of a Corolla, a Malibu for the price motorbike......This would make the good designs from GM go up in popularity, crushing the imported ones since a Camry and Accord will cost way more.....
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Replying to: kernick (Mar 02, 2009 9:37 am) #2: I vote for the voucher if the govt is hell bent upon helping D3. I think I made myself ample clear now. Thanks! |
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Replying to: chikoo (Mar 02, 2009 12:16 pm) Assuming one can get a loan for the difference in price. Which a lot of people can't because of this little thing called a "credit crisis," which is one of the reasons for the current problems.  If they can't get a loan for the difference, then all that 10k voucher is going to do is get someone an Aveo. And I predict they would be exchanged for MANY "free" Aveos, thereby stimulating the Korean economy quite nicely. It would be either that or toss them, and most people are NOT going to toss them.
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Replying to: bpizzuti (Mar 02, 2009 12:26 pm) The manufacturers would end all the employee pricing... I actually think cars would be cheaper but not down by $10K with the rebate.
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Replying to: fezo (Mar 02, 2009 12:34 pm) Some would, I bet. |
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Replying to: chikoo (Mar 02, 2009 12:16 pm) It's taxpayers money first. Toyota, Honda, Nissan, Hyundai, BMW and MB are much much much larger taxpayers than any of us ( probably ). Would you allow your money to be given as a gift to a competitor to increase it business at the expense of decreasing your business. Then like it or not to the D3 faithful, the transplants make American vehicles. Some are far more American than even the D3 issues. The Federal Govt will not give cash gifts to one American company at the expense of another American company. It won't happen. Now they might give vouchers to buy any vehicle with a Domestic Content greater than say 55%.....any vehicle. With this it would stimulate a whole variety of sections of the country.
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| ...$10K and I'll buy that 2010 Buick LaCrosse tomorrow! | |
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Replying to: kdhspyder (Mar 02, 2009 2:24 pm) Interesting that if a foreign producer did this in their home market we'd have a lot of Americans yelling about fair trade practices against US vehicles. I'm still thinking a liquidation of Chrysler and an orderly bankruptcy restructuring of GM is the best way to go. If the economy stays soft all year, Ford will probably become a problem child as well. That will be even more complicated because of the Ford family favored stock class interests. I would insist that go away before any US tax dollars go there. You might have a bit more foreign interest in acquiring parts of Ford if they get into trouble later.
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