Could there be some cost benefits from a shared dealer network and shared admin centers ? Probably wont help much with the underlying problem though , no one is buying their stuff !
Paul
PeakOil is You
Treasury may bail out bad auto loans (GM/Chrysler merger)
Re: GM, Chrysler resume merger talks
by PWALPOCO » Fri 19 Dec 2008, 10:22:57
All that it takes for evil to triumph is for good men to do nothing.
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Re: GM, Chrysler resume merger talks
by DJSNOLA » Fri 19 Dec 2008, 10:48:31
I think it is for one main reason and that is that if they combine they will be able to have greater bargaining power. Too big to fail is their logic! And why wouldnt they pursue this route. Bernanke, Paulson and Congress have already shown that to get bailout funds you have to screw up enormously. The bigger the screwup the bigger the booty!!
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Re: Chrysler Shuts Down
by AirlinePilot » Sat 20 Dec 2008, 01:19:13
$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('AirlinePilot', 'I') am pretty sure that during the holidays they shut down for about two weeks anyway. So this isn't quite the "shrill" news its getting spun as. Typical stuff from the MSM though. Don't bother to tell the whole story, and they aren't even being factually incorrect! They are just choosing to let you in on the ugly sounding part and carefully leaving out the other pertinent facts.
Its a lesson in media hype.
Its a lesson in media hype.
HMMM want some peanut butter to spread on those toes?
$this->bbcode_second_pass_quote('linked article discussed', 'A')ll 30 of the carmaker's plants will close after the last shift on Friday, and employees will not be asked to return to work before Jan. 19.
Chrysler blamed the "continued lack of consumer credit for the American car buyer" for the slow-down in sales that forced the move.
The company ordinarily shuts down operations between Dec. 24 and Jan. 5. This closure would add roughly two weeks to that shutdown.
Maybe some jelly on those ankles?
Im not saying this isnt bad, just that a lot of media outlets arent quite telling you the whole story. I got it first hand from a buddy of mne who lives near detroit and flies for Northwest. They always get two weeks off around Christmas.
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Re: GM +Chrysler close down North American factories for Jan
by mstevens » Sat 20 Dec 2008, 01:53:13
Labor costs aren't the reason GM and Chrysler are tanking. The reason they are tanking is because of inept management. Labor only accounts for about 5% of the production cost of a car. You could double their salary and it still would have little affect on the bottom line.
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Re: GM +Chrysler close down North American factories for Jan
by mattduke » Sat 20 Dec 2008, 01:56:32
These guys destroy about $6000 of wealth with every car the manufacture.
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Re: GM +Chrysler close down North American factories for Jan
by Armageddon » Sat 20 Dec 2008, 02:00:48
$this->bbcode_second_pass_quote('mstevens', 'L')abor costs aren't the reason GM and Chrysler are tanking. The reason they are tanking is because of inept management. Labor only accounts for about 5% of the production cost of a car. You could double their salary and it still would have little affect on the bottom line.
Where is the other 95% ? Curious on the breakdown.
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Armageddon - Light Sweet Crude
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