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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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Replying to: cooterbfd (Nov 27, 2008 6:48 pm) Well they aren't going to fail as a Group, meaning at the same time. That then means that the first to go down, will benefit the other 2 left. If McDonald's closes, Burger King and Wendy's and Taco Bell gets their business. So if GM closes, I see Ford and Chrysler will become profitable. The suppliers to GM will simply stop pouring plastic in their molds for GM, and use the molds for Chrysler and Ford more. There is probably not any net-loss of business. The same number of cars will be made and sold if GM goes out of business tomorrow. Remember that "the truth" you are hearing is biased. It is biased $25B worth. If someone is dangling $25B out there to me and my 2 friends, you're darn tooting I'm going to spin you a good tale that you can't do without me. If you believe you can trust these guys when they have $25B to gain, well there's little hope. 
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Replying to: cooterbfd (Nov 27, 2008 7:04 pm) He had me to advise him. Some of the employees were told if they moved to Indiana they could have their jobs at a reduced rate. Tom was in a unique position and I advised him to get at least a years contract to move to Indiana. In this case you are asking some one to leave paradise and move to the Midwest. C'mon you know that should get a big raise. He only got 5% more but it was more than enough to give them a much higher standard of living in a small town with not so great weather. My daughter was an escrow officer and has switched to foreclosures. They were happy to keep her on and she works from home. I do miss having them around. With gas so cheap we may cruise back this winter for a visit.
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Replying to: kernick (Nov 27, 2008 7:18 pm) That is exactly how I see it. There will be no need for a bailout. Ford and Chrysler were not the ones instigating it. They just wanted a piece of the bailout pie. GM will have to sell their assets to pay off the retirees. Ford can buy Corvette and let the rest turn to rust. |
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Replying to: kernick (Nov 27, 2008 7:18 pm) I doubt it will benefit them to the tune of 90,000 jobs, plus those at the dealers, if it were GM to go down. There would still be job losses, and that would be bad. Show me where this guy in DC is biased??? |
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Replying to: kernick (Nov 27, 2008 1:27 pm) Correction inserted in your prior post. They may offer more names but in fact they sell far less units. The public isn't fooled by the wordplay.
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Replying to: gagrice (Nov 27, 2008 7:20 pm) Opinion from the Brookings Institution via the WSJ: "In our judgment, based on experience elsewhere in American industry, the most constructive role the government can play at this point is to provide a short-term infusion of capital with strict repayment rules that will essentially require the auto makers to sell off their assets to other, successful companies. By establishing firm mileposts for asset divestitures from which the companies could repay government funds, taxpayers could be reasonably assured that their money is well spent." link - may be registration only |
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Replying to: kdhspyder (Nov 27, 2008 7:34 pm) If the buying public is just more comfortable with the Civic, that doesn't mean the G5 and Cobalt aren't 2 choices.
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Replying to: cooterbfd (Nov 27, 2008 7:43 pm) Problem with this is, 9 out of 10 times the consumer will pick the Civic over the G5 or Cobalt, because it's just a better car. So GM has to pay for two different designs, built on two different assembly lines, and sold at two different dealerships. After all this extra cost, the Civic still out-sells both of them combined, by a large margin. To top it all off, the Civic probably cost Honda less to build, and will sell at a higher price. It's the same problem with the Malibu/G6/Aura deal. Three different designs to compete with one Accord design, one Accord assembly line, and one dealership. GM has to stop all this rebadging.
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Replying to: cooterbfd (Nov 27, 2008 6:21 pm) http://www.jaia-jp.org/e/stat/annual_data/quantity_and_value.html In terms of volume, yes, VW is the Number 1 company, followed by the other two Germans (Mercedes and BMW). GM probably comes at Number 11 (below - horrors - Peugeot) http://www.jaia-jp.org/e/stat/quick_report/200810shamei_e.htm |
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| excellent point. Make the Malibu and sell it for 15.000 then see how well gm does | |
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