Posted on 11/20/2008 7:44:12 AM PST by Fred
WASHINGTON -- A full-court effort by U.S. auto makers to secure federal aid appeared to be on the rocks after the companies failed to convince lawmakers of the urgent need for a rescue.
Michigan Rep. Dale Kildee, Chrysler Chairman and CEO Robert Nardelli, GM Chairman and CEO Richard Wagoner, UAW President Ron Gettelfinger and Michigan Rep. Sandy Levin (left to right) prior to a hearing Wednesday on Capitol Hill at which the auto makers made their case for federal assistance.
Late Wednesday, Senate Majority Leader Harry Reid backed away from efforts to force a vote this week on a Democratic-backed bill. The Nevada senator said he might move a Republican alternative proposal Thursday, but suggested it faced strong opposition. "We have to face reality," he said.
A failure to gain support in Washington would be a major setback for all three companies and could force General Motors Corp. to file for bankruptcy protection, a move that would ripple through the economy.
GM is privately resisting suggestions from advisers that it make preparations for a bankruptcy filing, despite telling Congress this week it could soon run out of cash, according to people familiar with the matter.
The company's view is that consumers won't buy cars from a bankrupt auto maker. GM is concerned that if it were even to take steps in that direction, such as hiring bankruptcy counsel, the move would leak and unnerve potential GM customers.
WSJ's John Stoll talks about the second day of testimony of auto makers from Detroit, who are seeking money from the government. Congress is going in eyes wide open this time.
Because of its refusal to make plans for a bankruptcy, GM is "courting a Lehman-like situation," said a person familiar with the matter. Lehman
(Excerpt) Read more at online.wsj.com ...
“All this cheering for the demise of American Manufacturing. The Enviormental wackos and those who felt a loan was socialism, will be dancing in the streets.”
Capitalism works...we have to let it.
Greenies didn’t win anything...these companies will be cut up by division and sold off to others that can make them work without the burden of the unions.
Delta Airlines is still flying and you have a choice to pay their fees or fly Southwest Airlines for no fees. No one says you have to fly Delta but they did go through Chapter 11 and emerged stronger without going under even if they upped the fees.
not to worry...there are a finite amount of stocks and the money on the side-lines won’t stand for zero returns for long....
REAL ESTATE is going to be really low, if the UAW doesn’t lower its wages....like tomorrow.
uhhh yeah that’s really stronger?! In there pursuit of survival they’ve achieved crappiness, now that’s strength, lol!
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