Posted on 11/12/2008 5:58:26 AM PST by tobyhill
As General Motors burns through cash, edging its way toward possible financial collapse, a growing number of analysts have said bankruptcy might be inevitable. GM insists such a move is out of the question, and as the debate roils, people on both sides point to two past scenarios for lessons.
One is a story of success. Several major U.S. airlines have operated under Chapter 11 bankruptcy provisions. United Airlines has been through it. US Airways and Continental Airlines filed twice. Both Delta Air Lines and Northwest Airlines, which are in the process of combining operations, emerged from bankruptcy court protection last year. Labor contracts were renegotiated, and everyone, from baggage handlers to pilots, took pay cuts. Yet through it all, travelers continued to book tickets to fly.
But another was a disaster. Daewoo Motor -- South Korea's equivalent of Chrysler -- could not stay afloat during the Asian financial crisis. In 2000, burdened by $16 billion in debt, it filed for bankruptcy. About 7,000 workers lost their jobs, and many suppliers buckled. Daewoo was sold off in pieces to other automakers, including GM. Because GM's purchase did not include Daewoo's U.S. distribution network, many dealers lost their franchises. Its global brand all but disappeared.
(Excerpt) Read more at msnbc.msn.com ...
The problem is that no one wants what they produce. Its not like they need a loan to fix the trucks that deliver the product to the masses waiting in line to buy it! The only thing the loan is going to do is enable them to make payroll for a while longer and fill the UAW health care fund. Giving them a loan/bailout is not going to make people purchase their cars/trucks. And believe me, I say this knowing full well the consequences, as i live in Michigan. But prolonging the inevitable is a waste of taxpayer money.
We have successful American manufacturing of Automobiles in Tennessee, Mississippi, Alabama and South Carolina.
I would reply to you if I could figure out how you reached this conclusion from my comment. Since I cannot figure out a rational way you could have done so, there is no point to a fuller response.
click here for the rest of the story.
If American manufacturing is truly represented by GM then it needs to fail.
GM can't fail soon enough for me.
no one cares what you emote.
GM is nothing more than a symptom of the problem - really stupid management, poor product design and development, greedy unions, inefficient production, retarded quality control, etc. Saving GM does not save American manufacturing. Letting it die hurts, but does not kill, American manufacturing.
Sober up.
And emission controls. Regulations and unions killed the auto industry. It could have survived bad designs and mismanagement, those are temporary problems. Union contracts and pensions are forever.
Considering what the Left has done, including the recent contrived financial collapse, the only logical conclusion is their intent was/is to destroy America.
I think UAW is DELERIOUS WITH HAPPY. They have the democrats in their hip pocket so the UAW will get bailed out with taxpayer funds and their members will continue to get wages, health and retirement benefits that are second to none except for CEO's of fortune 500 companies. They are laughing their rears off.
There are companies beyond the Big Three that are making cars in America, but they're run by people from overseas. Just two years ago, I was working for a semiconductor maker that was headquartered in Taiwan. We made quality goods at a profit, and had good benefits and pay without unions.
I agree...this is ridiculous. Why are we bailing out companies that make inferior products or are no longer appealing to the public..What about small businesses who can not even make a go of it because of all the regulations and taxes. We should be writing our senators and congress “telling” them no on these bailouts. We want the written resignations of the CEO’s of Fannie Mae and Freddie Max with no million and million dollar payoffs. If they don’t think we are serious we should have a national work strike except for emergency personel. Imagine the message this would send. Why are we allowing this to happen..This is nuts. We have to move here or this country will become a third world country and these people will be living in their mansions. We’re handing everything over to them. Who do you think is going to suffer in the long run...you and me the middle class. These people don’t care about us and our kids......
Here’s the thing I don’t get....they want $25BILLION to fund the healthcare of retired workers....so we take that tax money from working people...many WITHOUT healthcare and give to the the ‘lucky dems” that voted for Obama.
Oh God I hate this admistration so much already.
...We have successful American manufacturing of Automobiles in Tennessee, Mississippi, Alabama and South Carolina...
I’m going to go out on a limb and take a wild guess that they are non-union? Nah, couldn’t be.
Sure, let's subsidize that.
SNORT.
In the book Atlas Shrugged there is a scene when the leaders of the country, who have driven the economy to collape by over regulation, pause for a moment when they acheive their goal of total control by freezing all wages and prices.
The Democrats can't let GM go bankrupt. They can't let them out of the union contracts. They WANT to bailout GM. They've worked on it for decades. Now they can force management to give them a share of the company for cash compensation. When GM comes back to the government needing more they will have to give more. Then one morning the automotive industry is nationalized. The government controls 10% of the economy. Of course by then health care will be nationalized, giving them another 14%. As corporations go under the government buys at the fire sale, or just takes over "to protect jobs".
Welcome to the realization of Anti-Glasnost.
Correction, this will be Anti-Perestroika.
Anti-Glasnost is coming soon in the form of the fairness doctorine.
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