US Auto Industry asking for $50 Billion bailout...is it finally time to say NO?

[Baseballfan155]

Unfortunately if we were to do that, the US auto industry would go bankrupt, and it would just cause more chaos on top of an economy that is already in serious trouble.

 

[D_Marazion Analdouche]

the President-elect disagrees with you, and has gone on record to state he will be coming up with some sort of federal intervention

We'll see if everyone bashes Obama for pushing a bail out for the auto industry just like they flamed bush for the bank bailout.

Countdown to people saying "Well he needs to bail them out because of Bush and his failed policies" in 10.....9......8.......7.......6.........5.......

 

[D_Bob_Crotchitch]

I was reading today that an offer was made to the government to give the government stock in return for the financial help. Just what we need, the government owning everything.
I do believe that some sort of deal needs to be made. Possibly a low interest loan. Also, if you read J D Powers & Associates, some US made cars have been rising in quality over imports.
I am driving a 15 year old chevy truck. It has been a good vehicle with minimal problems.

 

[D_Bob_Crotchitch]

the President-elect disagrees with you, and has gone on record to state he will be coming up with some sort of federal intervention

He has too not only for the health of the nation but because the UAW PAC gave him millions in contributions.

 

[FuzzyKen]

As others have pointed out there are not only US corporations involved but many suppliers. The problem is that as the US Auto makers diversified they grabbed a whole ton of other people into their spider web. If the auto makers go down all these outfits go down as well:

GM. GM auto US, GM UK, GM Germany, GM China (in partnership with a Hong Chi Corp) , Delco Remy, AC Spark Plug, Gulfstream Aerospace, Isuzu Japan, Safe Lite Glass, Uniroyal Tire, Saab Sweden, GMAC Realty, General Motors Acceptance Corporation, Delphi, GM owns more than 30 other corporations.

Chrysler: Chrysler/Dodge Auto, New Process Gear, Chrysler England, Chrysler South America, Chrysler Austrailia, Chrysler Mexico, Chrysler Canada, Chrysler Military Development, (Tanks etc.) Chrysler owns part of Renault in France, Part of Freightliner Truck though not the controlling interest, and about 20 more corporations.

Ford: Pratt and Whitney Jet Engines, Ford Auto, Volvo Auto, Volvo Truck, Volvo Construction Equipment, Land Rover US, Land Rover UK, Fiat of Italy, Ferrari of Italy, Ford UK, Ford Austrailia,

All in all worldwide by the time this crash came to an end estimates could be losses of more than one million jobs worldwide.

It's easy to say "let em eat cake" but the long reaching effect because of holdings far and wide could cause losses of jobs that would be staggering.

Deals can be made to cover the US population on this one.

There are no new companies and there will be no new companies, that is wishful thinking there will only be corporate "take-overs" by other major conglomerates that will ship these jobs overseas.

I hate bail outs, but this one will have to happen for all of us.............

 

[Qua]

You gotta be kidding me?!? Hell No! Don't give them a buy out.
What are they gonna do with it? Make more gas guzzlers that fall apart in a strong wind. Pffftt, :yuck:

You clearly have no idea what you're talking about. Their small cars are just as fuel effecient as anyone elses; they simply relied on the gas guzzling SUV segment too heavily. It was a poor business decision. It has nothing to do with the quality of car the US brands make, and I think you know it. And if not:

2008 J.D. Power Initial Quality Study - Autoblog

Please tell me why the Detroit automakers are not universally lumped at the bottom (ok well, Chrysler is...but Chrysler's the biggest mess of all)?

Seriously, this ignorant-of-the-facts, stereotype-drive belief that if a car is from a US maker then it must be shitty makes my blood boil. This was often true in 1980. Not so today, but the belief inexplicably lives on.

From the son of a US auto engineer who has almost single-handedly virtually eliminated GM's issues with leaks and seals over the past 25 years: FUCK YOU!

 

[surferboy]

i think what scares me more than GM going bankrupt is the fact that the nation of iceland is on the verge, last i checked, of going bankrupt, and entire country. that's way scary peoples! i dunno if they've tanked or if they've been bailed out.

the reason why it's bad for iceland to go bankrupt, besides the fact that it sucks for their peoples, is that a lot of europeans have investments in iceland. if the country fails, these investments fail, if these investments fail, then there will be huge market crashes in europe, which will eventually come back to us.

i had read that peoples that had money in a certain bank were not allowed to withdraw their hard earned money. it was gone

 

[Qua]

Now the question arises: do we bail out Iceland too?

Hell, I have some debts, I could use a bailout. While they're at it.

 

[surferboy]

something has to be done about iceland. like i said, if iceland collapses, a lot of european markets will collapse. when they collapse, we'll collapse

 

[D_Bob_Crotchitch]

something has to be done about iceland. like i said, if iceland collapses, a lot of european markets will collapse. when they collapse, we'll collapse

Let Europe bail them out.

 

[surferboy]

Let Europe bail them out.

i think they are

 

[D_Bob_Crotchitch]

Good, they need too. The US is broke.

 

[surferboy]

yes. yes we are. we need to get out iraq and stop spending 10 billion dollars a month.

 

[Qua]

You do realize that the majority of that 10 billion goes to pay soldiers' salaries, right? It's not like it's all disappearing into thin air. They may not be able to use it now, but when they do go off duty that is money that the gov't is putting directly back into the hands of consumers. Which is ultimately a good thing, even if the means are on a shaky Keynsian foundation and a war of dubious merit.

And yeah, a lot of that money is wasted. But not the whole 10 billion worth. A lot of it is being put in a position where it will do a lot more good for the economy than if had it been funnelled into some government program.

 

[surferboy]

i never said that the 10 billion dollars just disappears. i am saying, however, that this entire war is a money pit, and there's no reason for us to be spending 10 billion a year

 

[Qua]

Not disagreeing there. Just seems like most who throw out the cost numbers seem to act like it's money that gets throw down a wishing well. Well...a lot of it does. But most is ultimately put in better hands to help the ecnomy and GDP than the gov'ts

 

[surferboy]

no bruddah, i fully understand that some of the money goes to the soldiers.

 

[1BiGG1]

The Catch 22: Domestic manufacturers need the ability to go bankrupt to shed current UAW contracts and legacy costs (retiree’s pension & health care) much like United Airlines and others have recently done.

The Unknown: What this will do as far as consumer confidence.

Domestic manufacturers need the ability to compete with foreign manufacturers one way or another; the problem is an unfair playing field domestics compete in here in the North American market.

The problem is not quality, the problem is not building the wrong vehicles (notice how domestic manufacturers have worldwide operations and build what sells in those markets including the North American market) or any of the other uneducated banter here. The problem is an unfair playing field in the North American market.

Take note who that is that has sold more cars worldwide then anyone else (over 9 million last year) and has for over 7 decades. That would be the same company that is the number 1 manufacturer in the largest market, and number 1 manufacturer/number 1 importer in the second largest automotive market being China (China recently overtook Europe as the 2nd largest market) where they are running an extremely profitable operation. In China they compete on an even playing field with other manufacturers. Who is this? General Motors that’s who.

Yes domestics need a bailout but part of that needs too be a mandated level playing field whether the UAW and pensioners like it or not. The greater good of the whole no longer affords them the luxury of antiquated pay systems.