[lper100km]

If the past few days means anything, it seems that the market has totally discounted the effects of an auto industry collapse ie they just don’t mean that much anymore. Of course, if you believe that what’s good for the country is good for GM and vice versa, it’s head for the hills time.

[gnm]

This article, posted in another thread by DeMolay, seems pertinent..

http://market-ticker.org/archives/921-GM-Bankrupt,-UNLESS.....html

-G

[Keith_McClary]

$this->bbcode_second_pass_quote('Maddog78', 'S')ure, they should have also been developing better compact sedans at the same time ...

[Tanada]

$this->bbcode_second_pass_quote('Keith_McClary', '')$this->bbcode_second_pass_quote('Maddog78', 'S')ure, they should have also been developing better compact sedans at the same time ...

[bencole]

Chrysler filing for bankruptcy next week, apparently...


http://www.nytimes.com/2009/04/24/busin ... er.html?hp

[gnm]

$this->bbcode_second_pass_quote('Tanada', 'C')an you say "suicide sled"? I knew you could!

[Plantagenet]

$this->bbcode_second_pass_quote('bencole', 'C')hrysler filing for bankruptcy next week, apparently...


http://www.nytimes.com/2009/04/24/busin ... er.html?hp

[Daniel_Plainview]

$this->bbcode_second_pass_quote('bencole', 'C')hrysler filing for bankruptcy next week, apparently...


http://www.nytimes.com/2009/04/24/busin ... er.html?hp

[The_Toecutter]

Knowing the history of these companies and their unwillingness to make use of advances they had made in automotive technology(EVs, tripling of fuel economy through 'hypercar' concept, ect.), I was yet that much more disgusted that they were still getting government money while small startups were left with nothing. If Obama is smart, he will let them die and allow their assets to be liquidated.

[Mesuge]

$this->bbcode_second_pass_quote('DoomWarrior', ' ')Fiat must be a total loser company to still want to merge with Chrysler.

[bencole]

Chrysler declares bankruptcy.


http://articles.moneycentral.msn.com/In ... tch_090430
http://ca.news.yahoo.com/s/afp/090430/u ... ysler_fiat

[Plantagenet]

$this->bbcode_second_pass_quote('DoomWarrior', ' ')Fiat must be a total loser company to still want to merge with Chrysler.

[bencole]

"Obama says bankruptcy will allow Chrysler to 'thrive'"

http://news.sympatico.msn.ctv.ca/abc/ho ... lks_090430





Somehow I think not.

[Plantagenet]

$this->bbcode_second_pass_quote('bencole', '&')quot;Obama says bankruptcy will allow Chrysler to 'thrive'"

http://news.sympatico.msn.ctv.ca/abc/ho ... lks_090430

Somehow I think not.

[Denny]

I am still trying to figure out the arithmetic behind the $15 billion cash infusion to Chrysler.

Even if one accepts that the job loss involved would pose a trauma to the U.S. economy and "something" had to be done, this use of money is illogical.

Let us say that the extended Chrysler "family" number about 130,000. People who work directly for Chrysler, its dealers and its parts suppliers. Lets also say, roughly, that the production capacity for autos is excessive, and by about the same amount of people over the U.S. economic landscape. Would it not make a lot more sense to support, at least for a while, those people and retrain them?

Now, if one were to say that the unemployment support and retraining would amount to $100,000 per worker, one can quickly calculate that such a program would cost $13 billion. But, instead that amount and more is going to keep the Chrysler ashes warm, hopefully to resurrect, Phoenix like, into a blossoming new and successful Chrysler.

But, in so doing, if we logically assume that overcapacity exists, then these Chrysler jobs will come at the expense of other jobs at GM, Ford, Toyota, Honda, etc. And, their dealers. And, as for parts suppliers, if only so many cars and trucks are sold, regardless of the badge on the hood, its the same number and value of parts, more or less.

So, just what is being rescued by the cash infusion? The only jobs really being rescued, when you net out the economic effects, are those of the top brass as I see it. And, what if Chrysler does not resurrect itself, but continues to flounder and then sink, then that whole $13 billion has done nothing but buy a little more time on life support.

At least if the money went into redeployment of the workers involved for other, more valuable pursuits, the economy could come out ahead.

[Keith_McClary]

$this->bbcode_second_pass_quote('Denny', '
')But, in so doing, if we logically assume that overcapacity exists, then these Chrysler jobs will come at the expense of other jobs at GM, Ford, Toyota, Honda, etc. And, their dealers. And, as for parts suppliers, if only so many cars and trucks are sold, regardless of the badge on the hood, its the same number and value of parts, more or less.

So, just what is being rescued by the cash infusion? The only jobs really being rescued, when you net out the economic effects, are those of the top brass as I see it. And, what if Chrysler does not resurrect itself, but continues to flounder and then sink, then that whole $13 billion has done nothing but buy a little more time on life support.

[AirlinePilot]

Chrysler plants all to shutdown for the DURATION OF THE BANKRUPTCY PROCEEDINGS. Not confirmed yet but read on Ticker Forums this evening. It was announced after the market closed i believe. How do you think that plays out with the supplier side of the equation.

[eastbay]

http://www.forbes.com/2009/04/30/autos- ... tdown.html

Forbes says it too. No mo mo town for Chrysler.

[Chuckmak]

yeah...Chrysler is pretty much farked.

[Plantagenet]

Obama has given Chrysler to Fiat for nothing and given Fiat 8 billion dollars on top of it.

I imagine the Fiat people are laughing up their sleeves about that.