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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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bail outs in the financial sector are/were needed to protect mortgaged homes. i realize there has been a lot of abuse there. people still need a roof over their heads. autos are a tougher sell, because they are lower on the food chain. even if the auto company bail outs do not ultimately save the companies, they will cushion the blow. if approved, hopefully the money will be used wisely. my domestic vehicles have never given a lot of trouble, so i see no reason to not keep buying them. jmo. |
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Replying to: steve_ (Nov 25, 2008 5:58 pm) |
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No they won't be able to pat it back and no they don't deserve it. Why GIVE it to them? To stave off a quick melt-down in the Dow to 5,000 this winter when they declare bankruptcy. $25 billion is 0.5 percent of what we're throwing out ($5 trillion dollar bail-out) to save the financial sector. This $25 billion will give our economy the chance to stabilize by late next year and we'll be better able to take the hit of the Big 3's 2010 bankruptcy which is inevitable. It's a done deal. They'll get the $$ by January and the other 99.5% will be going to the big wheels in finance. |
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Replying to: dave8697 (Nov 25, 2008 2:11 pm) Get a grip on some reality. As a Republican, I still know GWB is a disaster. Torture. Loss of credibility. Loss of respect world-wide. Invasion of independent country uninvolved in 9-11. It looks to me like the "socialist" Obama is more open to demanding a realistic restructuring plan from the D3 than the "less government" GWB. Thank god. |
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Replying to: tlong (Nov 25, 2008 9:26 pm)
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Replying to: rogeliov (Nov 25, 2008 10:03 pm)  ).
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Replying to: steve_ (Nov 25, 2008 5:58 pm) |
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Replying to: steve_ (Nov 25, 2008 10:42 pm) 
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If the car industry is headed for 11.5 million units next year, it is not going to be possible for any of the Detroit 3 to hold on, unless perhaps there is much less competition for the few buyers that are out there. Chrysler's financial situation is hard to know exactly, but it seems that they're very poorly positioned in terms of their product portfolio. They have essentially no overseas presence, which means they don't have the ability to drive sales into a growing market like China. I think you'd have to look very hard at any business case around a Chrysler bailout. Allowing Chrysler to fail would free up some buyers, and probably a lot of them would stay with the domestics. GM needs to figure out how to erase about 5000 dealers and 4 or 5 divisions. Having dealers out there selling 10 cars a month isn't helping anybody's cause. It seems unlikely that current management will drive this type of reorg and maybe only Chapter 11 can make it happen. Ford is a bit easier to support. Bill Ford already fired himself as CEO and Ford has made hard decisions about driving production down. They still have too many products and too many dealers, though, and their hybrids are late to market. |
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Replying to: skw0123 (Nov 26, 2008 12:08 am) What would Ford or GM have to offer the Jeep buyer? Right now the only pseudo competitor to the Wrangler is the Toyota FJ Cruiser and it may be scrapped. Dodge Cummins PU owners may grudgingly buy a GM or Ford PU. Mini Vans, who cares they are all about the same. Chrysler still holds the trump card in GMAC. That seems to be a big problem at GM getting anyone to finance their products. Ford is going to be OK with plants like the one in Brazil. I got a feeling that GM or Ford could scrap their US holdings and make money in the rest of the World. The US has them so tied up with back breaking contracts and horrible regulations. GM shed one dinosaur in Delphi. Now it is time for them to file for C11 and get rid of the rest of their dead weight. |
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