Question about GM and government help
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Registered User
Joined: Jul 2002
Posts: 317
From: Fairfax, VA
Question about GM and government help
The US Government helps AMTRAK stay afloat year after year after year. If it wasn't for the government, AMTRAK would be long gone. How many airlines has the US government helped? If GM was 1 day away from declaring bankruptcy, would the US government float them a loan to help bail them out of their $$$ problems? I mean, if GM went bye bye, I can't imagine how devastating that would be on the US economy. Any thoughts?
Registered User
Joined: Aug 2003
Posts: 3,011
From: Exton, Pennsylvania
Re: Question about GM and government help
I would imagine that the government would intervene in some way, shape, or form. To let GM just die off is going to leave repercussions throughout the whole industry.
Registered User
Joined: Mar 2001
Posts: 13,713
From: The Golden State
Re: Question about GM and government help
Bankruptcy doesn't mean a company is closing it's doors. It simply means a company can renegotiate (or even dictate) how it's going to handle it's financial agreements.
GM going bankrupt would have the freedom to terminate union contracts and would be free to close car divisions without lawsuits from dealers.
Something to think about.
GM going bankrupt would have the freedom to terminate union contracts and would be free to close car divisions without lawsuits from dealers.
Something to think about.
ALMIGHTY MEMBER
Joined: Mar 2000
Posts: 2,298
From: Detroit, MI USA
Re: Question about GM and government help
this is my opinion...not necessarily the opinion of any auto company: I don't think the Government should be subsidizing companies. Of note: The United States Government did not 'bail out' Chrysler....they simply guaranteed the loans...and Chrysler paid back the loans......much earlier than they needed to.
That said: I do believe that our government should be playing hardball with countries that don't want to compete fairly......(i.e. tarriffs)
Boeing versus Airbus is perhaps a good example.
I also think that we need tort reform. That in and of itself will drop the costs of medical care and prescription costs.
That said: I do believe that our government should be playing hardball with countries that don't want to compete fairly......(i.e. tarriffs)
Boeing versus Airbus is perhaps a good example.
I also think that we need tort reform. That in and of itself will drop the costs of medical care and prescription costs.
Registered User
Joined: May 2004
Posts: 2,043
From: Shelbyville, IN
Re: Question about GM and government help
I agree Red. GM is not the only company hurting from high healthcare costs. This would be the most logical place to solve the problem. GM is just hurting more because they offered better benefits and employ more people. I don't imagine that when GM offered 100% covered healthcare they expected healthcare to increase at 10 times inflation...
Registered User
Joined: Apr 2005
Posts: 1,960
From: San Diego, CA
Re: Question about GM and government help
Even if it doesn't kill them and puts them in a good position to move forward, just hearing the news would make me cry, as if hearing John Lennon had been shot.
Registered User
Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
Re: Question about GM and government help
On Monday, a top Bush adviser dismissed calls for economic aid for the auto industry.
"They don't need a bailout, all they need is the time to restructure, and we're confident they will be very successful," said Al Hubbard, top economic adviser to the president.
"Obviously, GM has some big challenges right now, primarily because they make automobiles that are less fuel-efficient," Hubbard added. "It is unfortunate that GM is going to be laying off (employees) at the same time Toyota and other companies are expanding in the U.S. The important thing is that the overall economy is strong."
David Cole, director of the Center for Automotive Research in Ann Arbor, said auto industry critics are missing the point that many of the same retirement costs weighing on Ford and GM drove steel makers and airlines into bankruptcy. Now, state and local governments are facing burgeoning deficits for the same reason.
"These are issues that go well beyond autos," Cole said. "Any organization that has legacy employees has the same problems. We've stacked the deck against the guys who have been here a long time."
http://www.detnews.com/apps/pbcs.dll...512070388/1148
"They don't need a bailout, all they need is the time to restructure, and we're confident they will be very successful," said Al Hubbard, top economic adviser to the president.
"Obviously, GM has some big challenges right now, primarily because they make automobiles that are less fuel-efficient," Hubbard added. "It is unfortunate that GM is going to be laying off (employees) at the same time Toyota and other companies are expanding in the U.S. The important thing is that the overall economy is strong."
David Cole, director of the Center for Automotive Research in Ann Arbor, said auto industry critics are missing the point that many of the same retirement costs weighing on Ford and GM drove steel makers and airlines into bankruptcy. Now, state and local governments are facing burgeoning deficits for the same reason.
"These are issues that go well beyond autos," Cole said. "Any organization that has legacy employees has the same problems. We've stacked the deck against the guys who have been here a long time."
http://www.detnews.com/apps/pbcs.dll...512070388/1148
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