The Auto Bailout – Chrysler / Cerberus

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Mulally appeared before Congress last week with the CEOs of GM and Chrysler, and said he did so to support the other automakers and to line up a government loan just in case the economy worsened and Ford might needed the money in the future. If one or both of the others go into bankruptcy, it could drag down parts suppliers and force Ford into the same situation, Mulally said."



From this article . http://www.pressconnects.com/apps/pbcs. ... 1/81210021[/quote]




Makes sense. We will have to wait and see how long they can hold out buts chances are this economy isn't getting any better any time soon so I doubt it.

I think at the end of this crisis we may have only 1 or 2 of the Big three left. That would be the only way to truly reorganize and take advantage of some synergy between the 3. While some jobs would be the jobs that remain would be those that are needed to meet the current auto demand. Paying workers to sit idle while making cars that are only losing the company $2,300 on average is no way to conduct this business or any business.

Hudson,Packard,Studebaker,Willys,Cord,Kaiser,Crosley,Hupmobile , etc. The capitalistic system, if allowed to work without excessive greed and corruption will separate the cars people are willing to pay hard earned bucks for from the ones that do not work for America.The country has lost some tremendous vehicle brands over the years for various reasons.Detroit needs to look at history ,learn from it,and get their heads out of the sand. The handwriting has been on the wall for many years.

av8r wrote:

LOL. How very true .

I think whats going on in the bailout is that if the government don't save them we will lose jobs and sell less American cars. So if we let 1 or 2 fail , 2 or 3 years down the road people will be saying why did we let them fail we lost all those American jobs. What we need is a #11 reorganization right now, don't give them a dime lets clean house now get it overwith and in 6 months from now then will be leaner and more competative.

I read a report yesterday that both Ford and GM are profitable in Europe, have quality, competitive vehicles and are poised to actually produce those vehicles in the US market. When I lived in Europe Opal was a very popular brand. Almost every company in Europe produced a diesel engine for just about any car available that got 40 plus miles a gallon. This was 1990 and we were paying $3.00 more or less a gallon. It isn't just the union wages, it is also the way the plants are managed. The European factories are much more automated and far more efficient, and executive pay is reported to be a fraction of the US companies.

As far as Americans buying US made goods, that is a joke. Why do we continually buy everything at Walmart when we know it all comes from the far East? Because we want someone else to support the American worker. The same as when we want more jobs, but no one wants the factory in THEIR backyard. Always let it be someone else's back yard. We are far too selfish a culture. The greatest generation was great because they were willing to sacrifice something for their country, something, in general, our generation of Americans is unwilling to do. We talk a good game, but it is hollow talk if you ask me. How many of you shop at the local hardware store instead of Home Depot? I bet very few. I do because I have a local business and if I don't put my money where my mouth is why should they use my local business?

kootch88 wrote: How many of you shop at the local hardware store instead of Home Depot?

I try to because it is closer to home but I still get the Chinese crap and have to pay almost two times what I can get the same Chinese crap for at HD.

I try to because it is closer to home but I still get the Chinese crap and have to pay almost two times what I can get the same Chinese crap for at HD.

I hear you on that one, and it frustrates the hell out of me too, and my wife's family is getting rich off of us Americans producing this stuff!!
We have to do better at truly supporting our local manufacturers. We have to do better in not shopping at places like Walmart if possible. Heck many of you have no choice now because they are the only game in town.