Posted on 11/07/2008 2:18:53 PM PST by Fred
DETROIT -- The largest U.S. auto makers posted staggering losses on Friday, blaming a worsening global economic slowdown and linking their precarious fates to the hope of a government rescue.
General Motors Corp. reported a net loss of $2.54 billion or $4.45 a share, for the third quarter, including special items. That compares with a net loss of $42.5 billion or $75.12 a share, in the third quarter last year.
Ford Motor Co. reported a third-quarter net loss of $129 million, or six cents a share, compared with a year-earlier loss of $380 million, or 19 cents a share. But without a one-time gain related to Ford's retiree health care costs, Ford's pretax operating loss was $2.75 billion. video GM Struggles to Stay Afloat 3:13
With General Motors posting sharply lower quarterly earnings, WSJ's John Stoll asks whether bankruptcy may be next for GM. (Nov. 7)
More worrisome than the crippling losses was the greater-than-expected cash burn at each company. Ford plowed through $7.7 billion, seeing its liquidity position plummet to $18.9 billion. GM burned $6.9 billion and declared that its cash position at $16.2 billion wasn't enough to keep the company going through next year without immediate government intervention.
After years of restructuring that has closed dozens of plants and shed thousands of workers, Detroit's Big Three auto makers are now turning to Washington and other governments around the world to fund a vast downsizing of their industry.
GM, Ford and Chrysler LLC on Thursday appealed to Rep. Nancy Pelosi, the Democratic speaker of the House of Representatives, for aid, including an additional $25 billion in loans on top of the $25 billion already authorized to be provided through the Department of Energy.
While saying she favors support for Detroit, Ms. Pelosi stopped short of promising more help.
(Excerpt) Read more at online.wsj.com ...
Make a secured loan to GM & Ford. Not to Chrysler. Chrysler is not a public company, and they are hopeless anyway. If they go out of business, that will strengthen Ford and GM.
Too many auto companies are in the world. Some gotta go. Let the fittest survive. No bail outs, but reduce gov’t regulations.
Big Labor’s Bill to End Secret Ballots Gains Momentum(UAW spend 400,000,000 to elect DIMS)
http://www.freerepublic.com/focus/f-news/2128040/posts
As I was watching the interviews of GM’s Wagoner and Ford’s Mullaley (sp?)...
it sounds like they are more lobbyists than CEOs of automotive companies.
They are prepping the publics mental space. In a month or two, it will be only a question of how much.
Let Chrysler go.
Have the Unions ‘invest’ their pensions. After all the US governments are raiding my retirement money, each and every day. Supposedly, it's an ‘investment’.
Hit the dealers, suppliers, and the various states.
Renegotiate Union contracts. Why should the American taxpayer do the work management and investors don't want to do?
Chapter 11.
Sell to Arabs, Russians, Chinese...I don't care, just quit ripping me off for every Tom, Dick, GM, AIG,Banks,Farmers,Unions,New Orleans.........
As for 0% loans — Several Asian companies can and are doing so...with cars built in the US.
I don’t have a problem with making a small loan. They shouldn’t need $25 billion. There is a liquidity crisis now because the banks won’t lend. Do something that is calculated to relieve them of that burden. Give them some liquidity. The government can bypass the banks and make loans directly to Ford and GM. I might also demand that the execs take a pay cut and the unions as well.
“
Big Labor’s Bill to End Secret Ballots Gains Momentum
(UAW spend 400,000,000 to elect DIMS)
“
Democratic policy:
“Right of privacy” to protect folks liking to slice and dice
“non-viable tissue masses”...GOOD!
“Right of privacy” to protect you from even physical harm just because
you don’t want a union in your workplace...BAD!!! VERY BAAADDD!!!
Why would we want to help any of them. It’s not as if they did not see the competition rising against them and failed to do anything to meet it. Why should taxpayers fund dinosaurs that refused to adapt?
There is one thing I’m not hearing from any of the auto makers asking for money: their PLAN for turning their business around.
There isn’t any point in loaning them money just so they can stay afloat for now and sink sometime in the future.
Chrysler will be fine. they still have over 11b in cash.
I do hope they get bought by someone that will want to keep them around... I can’t imagine being found on the road dead with a powerjoke... if ford is around, that is.
They have already gotten one loan of $25 billion.
BUT with out the union baggage.
The Dems are not going to let these companies go down. There are a lot campaign $ and votes that they would lose if the any of these companies go bankrupt.
The only thing that we can hope is that they can’t hold out until Jan 22nd and do have to file bankruptcy and then they restructure the deals with the unions.
This would save us, the taxpayers a lot of money that we really don’t have to give.
Like I said, I don’t think that this particular crisis is simply due to their “failure to adapt.” It is in large part the result of the credit crisis that was caused by the government.
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