Ford, GM, and Chrysler Bailout?

Posted on | November 18, 2008 | 13 Comments

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With a financial bailout package in place, many government officials feel that a bailout of the automakers is a necessity. President of the Auto Workers union, Ron Gettelfinger made the statement that “if one of these companies goes into bankruptcy, I’d be willing to bet it takes two or possibly all three with them.” This would be devastating to the United States manufacturing division and would cause hundreds of thousands of workers to lose their job.

Any company that is attempting to sell a product that costs more than $10,000 is struggling greatly in this economy. Whether it be house, automobiles or heavy construction equipment, there is just not enough money to pay for these items. It is impossible to continue to reduce the price of these goods as the companies producing them are already taking a loss by selling the product at such low prices. The executives of the automakers are attempting to transform themselves but it may be too little too late.

Do you feel that some of the money from the financial bailout package should go towards bailing out the auto industry as well?

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Comments

13 Responses to “Ford, GM, and Chrysler Bailout?”

Jason
November 19th, 2008 @ 6:50 am

The UAW needs a little tough love. It derailed the Cerberus deal at Delphi. Today GM suffers a loss of about $2,000 per vehicle sold. On the other hand Toyota whose employees are not part of the UAW earns a profit of about $1,200 per vehicle sold. If GM was able to operate with labor prices near Toyota’s it would have pocketed an additional $29,715,200,000.

GM bailout nonsense
terry
November 19th, 2008 @ 11:31 am

I say give them the 25 Billion dollars they “need” with the caveat that WHOEVER take the money also takes a 50% paycut across the board, including bonuses,pensions, benefits. This would include white and blue collar workers, including the union officers. Then if they still want the money let them take it as a loan, not a grant. Each individual could then decide if they want it. Whoever wouldn’t take it could leave, with newer people taking their jobs.
Mike
November 19th, 2008 @ 12:06 pm

It may be necessary to go into a limited bankruptcy and re-negotiate contracts with everyone. It would also be of great benefit if the Big Three use the patents and prototypes they already have. It is no secret that they have vehicles that get over 85 MPG or even 125 MPG, in the 1970’s and 1980’s. One problem is cross investing. Oil companies are invested in auto companies. Large conflict of interest. Oil co. want low mileage for larger profits. Unfortunately the oil co. (ad others) have too large a grip on the auto industry, so the rest of the population is made to suffer for their incredible desire for more profit and greed.
Chad
November 19th, 2008 @ 3:25 pm

Unless the existing legacy cost are drastically reduced, this bailout will do nothing but postpone the inevitable. A massive labor and management restructuring must take place if the BIG3 are to survive.
Steve Hanks
November 19th, 2008 @ 4:50 pm

Absolutely no bailout..only limited assitance and then only with deep UAW and mgmt changes. I cannot justify paying more taxes now and saddling my kids with ad
nauseum taxes far into the future for any
of this ‘bailout’ garbage. Spend the money
on infrastructure and put real workes to
work.
admin
November 21st, 2008 @ 7:02 am

I think there should be no bailout as these companies made business decisions independently and should suffer the consequences. That being said, I am sure they would be bought out rather then go bankrupt.
Rakel
November 23rd, 2008 @ 9:01 pm

NO more bailouts… and I emailed all of my local representatives about it. Throwing my fuel into the fire is not going to put it out.
Rakel
November 23rd, 2008 @ 9:01 pm

*throwing MORE fuel into the fire.

Dang, my hands have a mind of their own.
Franky
January 25th, 2009 @ 11:18 am

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Brad
January 29th, 2009 @ 7:17 pm

I loved !
Brad
January 30th, 2009 @ 7:17 pm

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Conni
May 2nd, 2009 @ 3:17 pm

People…first a buyout would be by China so forget that. Second, a bankruptcy/redeal would put people who worked hard out of retirement period health benefits,etc., something similar to enron.

The OIL companies are controlling movements and lack of by GM…GM acquired patents to NMH battery for EV cars…merged part of business with Chevron who did same with Texaco…and THEY GOT THE PATENTS FOR BATTERIES TO POWER EV CARS.

YouTube the RAV4 and EV1 for info. Chevron, who profited something like 18 billion last year, owns most of NMH battery company claiming to be too broke to supply batteries that would get us off oil/gas.
Conni
May 2nd, 2009 @ 3:23 pm

People…first a buyout would be by China so forget that. Second, a bankruptcy/redeal would put people who worked hard out of retirement period health benefits,etc., something similar to enron.

The OIL companies are controlling movements and lack of by GM…GM acquired patents to NMH battery for EV cars…merged part of business with Chevron who did same with Texaco…and THEY GOT THE PATENTS FOR BATTERIES TO POWER EV CARS.

YouTube the RAV4 and EV1 for info. Chevron, who profited something like 18 billion last year, owns most of NMH battery company claiming to be too broke to supply batteries that would get us off oil/gas.

OBAMA’s step in should be Sherman AntiTrust suit aganst chevron/cerberus cap mgmt and all american oil co’s involved for deliberately forcing people out of EV cars ie into gas prices so high we all went under. Release patents, mass produce domestically. Next…force all holders of interest in america car co’s and vice versa responsible for honoring complete retirement deals, etc. EXCEPT the richo thievo corporate owners’ of course. Gov’t insured loans…yes…to all of US, you and me, a govt insured loan, kinda like fannie mae for a house…for us to buy an EV.

Otherwise, if China does buy GM, it’ll get the dam patent for the NMH battery and really own the dam world.

WAKE UP PEOPLE, PLEASE GET ON BOARD!