Posted on 10/28/2008 8:55:51 AM PDT by BGHater
Some analysts suggest failure may not be such a bad thing for Detroit's Big Three. Others, especially Michigan politicians, warn of calamity.
Are the Big Three worth saving?
The U.S. auto industry's downward spiral has accelerated dramatically in recent weeks. In a desperate bid for solvency, General Motors Corp. is seeking a merger with Chrysler. Chrysler has talked with Renault and Nissan about partnerships. And now Ford Motor Co., GM and Chrysler -- backed by Michigan lawmakers -- are lobbying Washington to give them cash, implying that failure to provide a bailout could doom the industry to bankruptcy.
Congress last month approved $25 billion in loan guarantees for automakers, and rules for those loans are being drafted. But the companies say they need more -- now. GM, Ford and Chrysler are burning through cash far more quickly than they're bringing it in, sales have fallen off a cliff, and none of them has been able to borrow money in months because of the credit crisis.
White House spokeswoman Dana Perino said Monday that officials at the Treasury, Energy and Commerce departments were discussing aid to automakers. Options may include buying equity stakes in the companies, providing more loans, guaranteeing their borrowing or buying troubled auto loans. Bush administration officials, she added, were "working as quickly as we possibly can" to speed disbursement of the loans.
(Excerpt) Read more at latimes.com ...
END the unions and make better cars.
THEN they could prosper.
Please, NOT another “bailout”!
The carmakers should declare bankruptcy, break the unions, and reorganize with a more competivitive corporate structure. However, if the Democrats get a filibuster proof majority and manage to pass the card check bill, that will not be possible, and it’s possible that the Japanese carmakers that opened plants in the South will move those operations to Mexico.
Apparently, the Big 3 have a good lobbyist because they have secured 25 billion in loans from the federal government. Larry Kudlow described this as a new low, and I agree.
The X5 is made in Spartanburg, South Carolina
The big 3 need to make something that drives like one, they figured out how to make something that looks like one.
They actually MAKE money everywhere EXCEPT North America (thank you unions). Their quality is equal to Toyota (see latest consumer's report magazine).
Only 2 things keeping the “Big 3” auto makers from being Profitable... the UAW and the US Government!
No they aren’t.....Profits go overseas.
Why not put the big 3 in the South and not use Unions? Work?
Wh-Wh-Wh.... You mean no more Jobs Banks??!!
Oh the humanity!
One of my favorite shows is Top Gear. They highlight a number of cars on this program. I find some of them are really appealing to me and them. I like their look inside and out and it seems their performance is good according to Top Gear.
Then I found out these cars are made by Chevy or Ford and I can’t help but wonder why don’t they sell these cars in the US?
When I was a child, my father bought a new car every year. He was a common laborer at Republic Steel. He paid for every car in cash.
Today, my husband and I are more successful economically. However, we would never even consider purchasing a new car. Even though we probably could afford it, it’s a poor choice economically. Cars simply cost too much and go down in value the minute you drive them off the lot. We buy used, and keep them for around 10 years.
I assume this mirrors car buying trends in the USA over the last four decades. Of course the automobile industry is going out of business.
Yeah, but are they an American company? My family has always made it a point to always buy cars made by an American company. Never have owned a vehicle with a foreign label. That was for a reason. We try to buy American if we can. Sadly, it has become harder and harder. Oh, by the way. Our older American car and truck on average have over 200,000 miles on them and are doing fine.
They employ us citizens.
They pay taxes in the U.S.
Profits may go out of the country, but the are U.S. car makers.
By the way, I refuse to buy a POS Ford, Chrysler or GM product. Can't afford the upkeep. This is major reason the 'Big 3' are in trouble - bad product.
END the unions and make better cars. ........................... They could be the reason why a $2500 Mustang now costs us $25,000? Since our economy has been based on the internal combustion engine, the Unions may have had a lot to do with the trickle down/up(?) inflation.
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