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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

What is this discussion about? Legislation


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#2700 of 3958
Quiet on the forums by tlong
Mar 05, 2009 (8:42 am)
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It's sort of like a death watch. Major news that 6 months ago would have gotten us all riled up is just routine now. We're all waiting to see what happens.
#2701 of 3958
Re: Quiet on the forums [tlong] by chikoo
Mar 05, 2009 (9:37 am)
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Replying to: tlong (Mar 05, 2009 8:42 am)

Yup...
 
A sudden death is a big loss.
A bed ridden death appears generally to be good riddance from all troubles.
#2702 of 3958
Iron-clad logic by pf_flyer HOST
Mar 05, 2009 (12:32 pm)
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That report from the GM auditors says that GM is "highly dependent on auto sales volume"
 
Wow... I never would have realized that an automaker would be dependent on auto sales volume.
#2703 of 3958
Re: Iron-clad logic [pf_flyer] by circlew
Mar 05, 2009 (12:36 pm)
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Replying to: pf_flyer (Mar 05, 2009 12:32 pm)

Exactly why the SAAR estimates in Q4 2008 by the D3 geniuses were so far off it isn't funny. They can't see the forest for the Trees!
 
Regards,
OW
#2704 of 3958
Re: Iron-clad logic [pf_flyer] by lemko
Mar 05, 2009 (1:09 pm)
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Replying to: pf_flyer (Mar 05, 2009 12:32 pm)

That report from the GM auditors says that GM is "highly dependent on auto sales volume"
 
No kidding, Captain Obvious!
#2705 of 3958
Maybe by pf_flyer HOST
Mar 05, 2009 (1:23 pm)
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Just maybe Detroit should get a meeting with Kia to see what they're doing since 2009 sales for Kia have been a Pleasant Surprise
 
Size would seem to be a big factor. GM is simply going to have to be scaled back to match production with demand. How that happens is the multi-billion dollar question.
#2706 of 3958
Re: Iron-clad logic [lemko] by chikoo
Mar 05, 2009 (2:16 pm)
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Replying to: lemko (Mar 05, 2009 1:09 pm)

sound more like Captain Oblivious
#2707 of 3958
Re: New Loans WILL be a WASTE [circlew] by cooterbfd
Mar 05, 2009 (2:28 pm)
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Replying to: circlew (Mar 05, 2009 3:46 am)

Automotive news did a report on this, and spoke w/ someone at a firm that specializes in this, and said it may not be that big of a deal, and that GM may be able to use this as leverage in negotiating with their creditors.
 
Not that it's a GOOD thing, either........
#2708 of 3958
Re: New Loans WILL be a WASTE [cooterbfd] by circlew
Mar 05, 2009 (2:41 pm)
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Replying to: cooterbfd (Mar 05, 2009 2:28 pm)

I am sure the bleak message has some undertones for a tough negotiating strategy.
 
At the end of the day, however, it is what it is. They need to be cut in less than half....now.
 
Regards,
OW
#2709 of 3958
Re: New Loans WILL be a WASTE [circlew] by cooterbfd
Mar 05, 2009 (3:18 pm)
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Replying to: circlew (Mar 05, 2009 2:41 pm)

I STILL don't understand why the government couldn't have sat down with the automakers and their creditors and played "Let's Make a Deal". With all the money these banks got in TARP funds, why couldn't they have said ammortize the debt over 30 years. The gov't gets 25% ownership in each automaker, and the banks agree to no payments for 24 months (that's what the TARP funds are for) and the government will guarantee the loans. This way, the automakers get temporary relief from their debt, the creditors get a guarantee of their money back, and the government would've laid out ZERO dollars now.
 
This would allow the D3 to prove their worthiness by building better products like the Fusion, Lacrosse, and whatever Chrysler could come up with.
 
If they can't, and still go belly up, then the pieces get sold off and the government can recoup some of their loss by selling the proporties and intellectual rights to others.

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