GM's changes in reaction to it's announced quarterly losses
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I guess the only way to save GM now is for a complete bailout by the feds. Nothing that big is likely to happen between now and January, which may be too late.
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GM has just announced that talks regarding merging with Chrysler are now officially off/over. Seems to me that GM’s only hope at this point is to either go Chapter 11 or go hat in hand to the Federal government to bail it out.
What’s even more unfortunate about such a bail out, than the bail out itself, would be that all it would serve to do would prop-up a failing business without requiring the changes necessary so that it can actually sustain itself.
You don’t give a drunk a drink…you send him to AA.
What’s even more unfortunate about such a bail out, than the bail out itself, would be that all it would serve to do would prop-up a failing business without requiring the changes necessary so that it can actually sustain itself.
You don’t give a drunk a drink…you send him to AA.
Last edited by Robert_Nashville; Nov 7, 2008 at 12:21 PM. Reason: Perhaps the "edit" will make my meaning more clear!
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From: Sandy VJJville
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Still wondering if we're heading for a recession?
I don't remember the last time GM was in such a critical state during a recession.
Now, my question is, how did automakers (and GM specifically) fare during the great depression?
I don't remember the last time GM was in such a critical state during a recession.
Now, my question is, how did automakers (and GM specifically) fare during the great depression?
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From: Sandy VJJville
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Originally Posted by reuters
* Says key vehicle programs remain on track: The Chevrolet Cruze small car will be launched in 2010 as planned, while spending levels for the Chevrolet Volt plug-in car and other fuel-efficient initiatives have been increased.
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I am wondering why everyone is calling it a bailout, is it not a low interest LOAN from the government??? At like 5%?? Something the government may actually make money on if the terms are written properly.
When I went to college I didn't get a student bailout, I got a student loan.
Eric can you further explain your comment about GM not qualifying for the 25B loan? It seems like a perfect answer to retooling Lordstown and Hammatrack. (SP?)
When I went to college I didn't get a student bailout, I got a student loan.
Eric can you further explain your comment about GM not qualifying for the 25B loan? It seems like a perfect answer to retooling Lordstown and Hammatrack. (SP?)
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I am wondering why everyone is calling it a bailout, is it not a low interest LOAN from the government??? At like 5%?? Something the government may actually make money on if the terms are written properly.
When I went to college I didn't get a student bailout, I got a student loan.
Eric can you further explain your comment about GM not qualifying for the 25B loan? It seems like a perfect answer to retooling Lordstown and Hammatrack. (SP?)
When I went to college I didn't get a student bailout, I got a student loan.
Eric can you further explain your comment about GM not qualifying for the 25B loan? It seems like a perfect answer to retooling Lordstown and Hammatrack. (SP?)
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I am wondering why everyone is calling it a bailout, is it not a low interest LOAN from the government??? At like 5%?? Something the government may actually make money on if the terms are written properly.
When I went to college I didn't get a student bailout, I got a student loan.
Eric can you further explain your comment about GM not qualifying for the 25B loan? It seems like a perfect answer to retooling Lordstown and Hammatrack. (SP?)
When I went to college I didn't get a student bailout, I got a student loan.
Eric can you further explain your comment about GM not qualifying for the 25B loan? It seems like a perfect answer to retooling Lordstown and Hammatrack. (SP?)
So now they've reached a point where no normal lender would give them a loan (because they don't qualify)...when it becomes necessary for the Federal government to step in and "loan" money to them; it's a bailout; even if it's couched in other terms (because they don't meet any of the normal qualifications for receiving a loan).
Everyone likes to point to Chrysler back in the '80s when they received a "loan" as an example of success but here they are again with their hand out...doesn't sound very successful to me.
As my friend Albert liked to say "We can't solve problems by using the same kind of thinking we used when we created them"
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Maybe that's a condition of the loan? Lee Iacocca was brought in to run Chrysler when they got a loan guarrantees from the Feds in 1979. I believe it was part of the deal.
(It was a week before my 14th birthday so I don't exactly recall all the details.)
http://en.wikipedia.org/wiki/Chrysler
(It was a week before my 14th birthday so I don't exactly recall all the details.)
The Chrysler Corporation on September 7, 1979 petitioned the United States government for US$1.5 billion in loan guarantees to avoid bankruptcy. At the same time former Ford executive Lee Iacocca was brought in as CEO. He proved to be a capable public spokesman, appearing in advertisements to advise customers that "If you find a better car, buy it." He would also provide a rallying point for Japan-bashing and instilling pride in American products. His book Talking Straight was a response to Akio Morita's Made in Japan.
The United States Congress reluctantly passed the "Chrysler Corporation Loan Guarantee Act of 1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter on January 7, 1980), prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. The military then bought thousands of Dodge pickup trucks which entered military service as the Commercial Utility Cargo Vehicle M-880 Series. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, Chrysler avoided bankruptcy and slowly recovered.
The United States Congress reluctantly passed the "Chrysler Corporation Loan Guarantee Act of 1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter on January 7, 1980), prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. The military then bought thousands of Dodge pickup trucks which entered military service as the Commercial Utility Cargo Vehicle M-880 Series. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, Chrysler avoided bankruptcy and slowly recovered.
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Maybe that's a condition of the loan? Lee Iacocca was brought in to run Chrysler when they got a loan guarrantees from the Feds in 1979. I believe it was part of the deal.
(It was a week before my 14th birthday so I don't exactly recall all the details.)
http://en.wikipedia.org/wiki/Chrysler
(It was a week before my 14th birthday so I don't exactly recall all the details.)
http://en.wikipedia.org/wiki/Chrysler
Iacocca pushed the loan guarantee when he first got to Chrysler.
It finished the funding of the K-car.
Due to good management and the success of the K-car and it's spinoffs including the minivan, Iacocca paid the loan back way ahead of schedule.
