Detroit Auto Makers Need More Than a Bailout

WSJ ^ | 111008 | PAUL INGRASSIA

[wolf78]

Any suggestions on what SUVs are best to buy now for 2009?

I don't know if it's that's correct price range, but those are made in the US - and they come with diesels, too:





Or maybe a BMW instead of a Merc?

[wolf78]

I don't know if it's that's correct price range...

Arrrgh. Should read: "I don't know if that's the correct price range...".

[Arizona Carolyn]

There is nothing good about bailing out the car industry as long as they continue to be loaded down with union-negotiated obligations... sad to say this... but we have to let them fail... but the O will not because the unions sunk $400 million dollars in getting him elected in order to gain even more power for themselves and unionize us all.

[Arizona Carolyn]

McCain wouldn’t let her.

[Arizona Carolyn]

If we bail them out that is how it SHOULD be, but I don't believe we should bail them out....

and what is this blurb I just heard on my local news, part of this bailout is a "recall on all cars that run on gas?" are these people freaking nuts!!!!!!!!!!

[Arizona Carolyn]

I am going to go nuclear with my representative, senator(s) Boehner and McConnell and encourage everyone else to do the same!

[Arizona Carolyn]

Sorry, I do not want my tax dollars to go for bailing out unions and that is what this does. They are not making any concessions here and there is nothing that will keep these companies needing more money down the line; in addition, this plan nationalizes the auto companies and tells them WHAT they can build. Sorry, I am a capitalist. Let them bankrupt and a bankruptcy judge reorganize them and their union obligations, not the taxpayer.

[KeyLargo]

Thanks. I am interested!

[softwarecreator]

GM is bankrupt. They're just not calling it bankrupcy, because nobody wants to buy a car from a company in chapter 11

You are right. They are and they can't say so becuase that would be the final nail in the coffin. Ford's probably close also.

[wolf78]

You are right. They are and they can't say so becuase that would be the final nail in the coffin. Ford's probably close also.

GM first and foremost, but Ford as well as Chrysler, also. Actually it's specifically the US business that is killing them, GM / Ford Europe is relatively sound (at least not losing money) and in China and Russia they are actually making a few rubles / yuan. Which is not that surprising, the recession hits the harderst, where the market is already over-saturated.

Cars per capita, out of 1000:
USA ~ 750, i.e. everyone, mostly big cars.
Europe ~ 500, i.e. only those who really need a car
Russia ~ 120
China ~ 10, i.e. room for growth