[idiom]

Let them go bankrupt under the next guy.

But wooo! Gas is free again!

[bluevoodoo]

The sad fact is that both GM and Ford have very good line up of fuel-efficient cars--GM has Opel in Europe and Ford has its own European models marketed under Ford name (it also still owns Volvo). If you check the Ford homepage you can see some of these cars--completely different from what they offer US buyers. Ford is supposed to be re-tooling plants to sell these cars in the States--but I would start importing them immediately and let US consumers become acquainted with them.
GM seems to be developing completely new line of small, fuel-efficient cars for US market, which does not make sense given that they already have the Opel models (which they were even selling successfully in Japan). Again, one has to question wisdom of GM management.
But I am not among those who think it wise to let these 'dinosaurs' die--that would ensure another half-million unemployed and certainly contribute to something more than a recession. If necessary, they should hire more European and Asian engineers and stylists--and perhaps a few Japanese and German quality control types.

[Spanktron9]

GM is reporting Q3 global sales down 11% vs. 5.8% for Q1/Q2. This is very bad. I haven't been able to dig up earnings numbers yet, there was rumor they were going to hold off reporting earnings until after the election.

[erb]

in my local area theres lots of auto sector contract companies that do plastic or part manufacturing. these companies have been laying off steady for a year now and some are out of buisness entirly or closing shop and and adding to their mexico manufacture base.

this is the tolling bell for Noth America, i know 3 people who work for the auto industry and these guys will lose everything ie. pension, job,invstments ect.

[RSFB]

Apologies if this has already been discussed:

Is it safe to say that no matter what happens, the US government won't allow these companies to fail, at least for a few years? "Too big to fail" as they say.

What politician would want to be faced with the massive consequences of hundreds of thousands of simultaneous lay-offs followed by the demise of sub-contractors with potentially millions of employees?

[ReverseEngineer]

$this->bbcode_second_pass_quote('RSFB', 'A')pologies if this has already been discussed:

Is it safe to say that no matter what happens, the US government won't allow these companies to fail, at least for a few years? "Too big to fail" as they say.

What politician would want to be faced with the massive consequences of hundreds of thousands of simultaneous lay-offs followed by the demise of sub-contractors with potentially millions of employees?

[RSFB]

$this->bbcode_second_pass_quote('', 'T')he question would be, how do you STOP them from failing?

[ooopps]

Rumor has it that the 3 headed dog Cerebus has secured their end of the merger financing. GM has been told "no" by the feds because the government does not want to be tied to a potenetial 50K job loss in the auto industry. Just a matter of time before this becomes a done deal and someone gives GM the money. Michigan will be sunk if this merger occurs.

On the other hand Nissan is very interested in Chrysler as well. We will see.

[Gerben]

I can't believe nobody published news on GM anywhere. I got an interesting memo today.

[RSFB]

Auto sales 'unsustainably weak'; GM's fall 45 pct

$this->bbcode_second_pass_quote('', 'I')f GM's sales were adjusted for population growth, October would be the worst month of the post-World War II era, DiGiovanni said.

[mos6507]

Not sure if this is the right topic for it, but you may want to read through the Big 3's "plans" submitted to congress. One thing I found interesting was Ford has flip-flopped and now supports building electric cars, not just hybrids, with a sedan they say they can release in 2011, the same year the Volt is supposed to really ramp up production.

It's on page 17 of this:

Ford Plan

[Keith_McClary]

$this->bbcode_second_pass_quote('mos6507', 'N')ot sure if this is the right topic for it, but you may want to read through the Big 3's "plans" submitted to congress. One thing I found interesting was Ford has flip-flopped and now supports building electric cars, not just hybrids, with a sedan they say they can release in 2011, the same year the Volt is supposed to really ramp up production.

It's on page 17 of this:

Ford Plan

[Denny]

Is it just a coincidence that Chrysler is in the news about its apparent spinoffs into obscurity on the same day that Ricardo Montalbahn meets his maker?

I still remember him moving all those Chrysler Cordobas and their "rich, Corinthian leather" interiors. I am guessing he alone moved thousands of tons of steel back in the 70's.

Rest in peace Ricardo.

I am wondering just how many days Chrysler has left on life support.

[eXpat]

New spin in the crash, is to protect the loans.
GM, Chrysler May Get Bankruptcy to Protect U.S. Loans

$this->bbcode_second_pass_quote('', ' ')Feb. 9 (Bloomberg) -- General Motors Corp. and Chrysler LLC may have to be forced into bankruptcy by the U.S. government to assure repayment of $17.4 billion in federal bailout loans, a course of action the automakers claim would destroy them.

U.S. taxpayers currently take a backseat to prior creditors, including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc., according to loan agreements posted on the U.S. Treasury’s Web site. The government has hired a law firm to help establish its place at the front of the line for repayment, two people involved in the work said last week.

If federal officials fail to get a consensual agreement to change their place in line for repayment, they have the option to force the companies into bankruptcy as a condition of more bailout aid. The government would finance the bankruptcy with a so-called “debtor in possession” or DIP loan, a lender status that gives the U.S. priority over other creditors, said Don Workman, a partner at Baker & Hostetler LLP.

“They are negotiating to see if they can reach an agreement,” said Workman, a bankruptcy lawyer based in Washington. “If not, they are saying ‘We are pretty darn sure that a bankruptcy judge will allow us’” to be first in line for repayment.

[timmac]

I always thought the big 3 bailout was a waste of time and money,, there is no sign of the economy getting better anytime soon and see no reason of hoards buying cars and trucks anymore,, its time for the big 3 to just file bankruptcy and get over with it and start to rebuild a new smaller, leaner, smarter company..
Why do so many think that a BK would be bad and kill the big 3, many companies come out of a BK better..

[Denny]

Even though there is every accounting reason to believe the Big Three should all be sent to the crematorium by now, there is a huge emotional bond between Americans and cars, and the foreign makes just don't have that same emotional connection.

This is story from the Detroit News abut that, and why, whatever it takes, Americans will keep the Big 3 in their hearts. I see that, but am not sure if its because I was "brought up" in the auto business and spent a lot of time in Michigan in my life. Maybe people in other parts of North America do not see it that way. How do you see it? Is a car just another appliance? Will we see the car business evolve just as electronics has - overseas?

See Big Three bank on its heritage

"More than dollars and cents the disappearance of the U.S. auto industry would be a major blow to the American psyche. What industry defines the American experience more than a Mustang, Jeep or Cadillac? Detroit has been turning out state-of-the-art vehicles for what seems like forever. Ford opened its shop in 1903, GM 1908 and the baby of the troika, Chrysler, has been in business since 1925.

The American auto scene has spawned some of the most forward-thinking and colorful entrepreneurs that have graced the nation's history. People such as Billy Durant, Henry Ford and Walter P. Chrysler were true visionaries who viewed the automobile as more than just a way to get from point A to point B. Much more than that was the idea that the American car was somehow larger than life. That getting behind the wheel was by definition a majestic experience. "

[vision-master]

General Motors cutting 10,000 salaried jobs

$this->bbcode_second_pass_quote('', '
')updated 40 minutes ago

DETROIT - General Motors Corp. said Tuesday it will cut 10,000 salaried jobs, citing the need to restructure itself with a government deadline looming and amid some of the worst sales in the auto industry’s history.

The Detroit-based automaker said it will reduce its total number of salaried workers to 63,000 from 73,000 this year. About 3,400 of GM’s 29,500 salaried U.S. jobs are expected to be eliminated.

[AgentR]

$this->bbcode_second_pass_quote('Denny', 'I') see that, but am not sure if its because I was "brought up" in the auto business and spent a lot of time in Michigan in my life. Maybe people in other parts of North America do not see it that way. How do you see it? Is a car just another appliance? Will we see the car business evolve just as electronics has - overseas?

[jdmartin]

$this->bbcode_second_pass_quote('Denny', 'E')ven though there is every accounting reason to believe the Big Three should all be sent to the crematorium by now, there is a huge emotional bond between Americans and cars, and the foreign makes just don't have that same emotional connection.

This is story from the Detroit News abut that, and why, whatever it takes, Americans will keep the Big 3 in their hearts. I see that, but am not sure if its because I was "brought up" in the auto business and spent a lot of time in Michigan in my life. Maybe people in other parts of North America do not see it that way. How do you see it? Is a car just another appliance? Will we see the car business evolve just as electronics has - overseas?