Automotive News, Media & Press - Bad News For Detroit

http://money.cnn.com/2008/11/07/news/companies/gm/index.htm?postversion=2008110711

not looking good for gm i hope the government does something to keep them afloat

I just looked at the news this mornign and it said ford has alost alot too and they will cut 10% of its workforce if something doesn't happen soon

That sux, here is another story on it.

http://www.msnbc.msn.com/id/27593678

they need to $hitcan all the union employees ... and I hope the gov't doesn't step in, we don't need anymore socialism... bad enough so many people elected a socialist president (elect)

they need to $hitcan all the union employees ... and I hope the gov't doesn't step in, we don't need anymore socialism... bad enough so many people elected a socialist president (elect)While I may or may not agree with everything above I will say what I've been saying all along...if GM and/or Ford (and even Chrysler) close their doors or are forced to go into a major restructuring, over 70% of the members of this very board (and of course the entire nation) will be adversely affected by it.
It will have a nationally/internationally negative impact that could rival (exceed?) the Great Depression.
Careful what ya wish for. :nono:

they need to $hitcan all the union employees ... and I hope the gov't doesn't step in, we don't need anymore socialism... bad enough so many people elected a socialist president (elect)

+1... I love GM, but let them take care of their own mess.

It will have a nationally/internationally negative impact that could rival (exceed?) the Great Depression.
Careful what ya wish for. :nono:

Agreed but I think we have to weight the options:

Sucking it up and accepting the impact as our free market corrects itself given the globalization of labor (and other factors)? (which could indeed lead to very dire times)

OR

Continuing down the road to the socialization of risk? (who's next if the govt bails out the auto industry -airlines? homebuyers? everyone?)


...I don't pretend to have the answer, just something to ponder.

They did it to themselves.

If there is no government bailout GM will be bankrupt by the time Obama takes office.

Did anyone watch Obama's first press conference today? He called attention to US automakers by name and called them the backbone of our economy.

There is no way our government would let any of the Big 3 go under.....that would hurt the economy VERY badly. Thats like saying American Airlines going under.....it just would not be allowed.

Place a 10k USD tariff on all cars produced outside of the US and voilla the problem is fixed.

W

They did do it to themselves...but this is US jobs and national security at sake.

W

Sell a % to Toyota. Hell its happened before.

Place a 10k USD tariff on all cars produced outside of the US and voilla the problem is fixed.

W

25% tariff of value and sack Union workers. Unions are for lazy workers handouts.

They won't let it fail.

Simply put, 2,000,000++ jobs suddenly lost does not bode well for the country. And further, no consumer buys from a bankrupt company.The airlines bankruptcy examples are an exception as they are the only cards the gov't allowed to play. So you had no choice to use them if you wanted to get anywhere remotely quickly. Which then in turn has a serious trickle down to lenders who will summarily see skyrocketing default rates. The fallout from this would have severe and lasting consequences even beyond the economy. Politically it would have very interesting reprecussions; such as the possible rise of political parties that have been dormant for many many years. Also, say au revoir to manufacturing strengths. Finance and brain capital is leaving the country anyways, why not send a few more industries abroad??? tsk tsk tsk.

Vicious cycle.

I agree that a hands off approach should happen, but that has its premise in that there is equal information disseminated. The idea of a free market is that consumers and producers are free to exchange. However, our current market has middle men, the idea of debt, and vastly skewed information; hence defeating the idea of a truly free market.

p.s. for those who want to quote the invisible hand ala Adam Smith, read the rest of his work, not just one single sentence from 10,000 others.

If GM fails we are all in big trouble. That would create crushing blow to the ecomony.

bad enough so many people elected a socialist president (elect)

Bitter much?

Place a 10k USD tariff on all cars produced outside of the US and voilla the problem is fixed.:werd: Make that count specifically for only all non GM/Ford/Chrysler badged vehicles and I'm all for it, put it on a ballot and I'll vote twice! :D :usa:

our govt seems to want to be charitable so why not give more money out?

i still think itll only prolong the demise of the big three. :( at one least one of them will go under.

If they got rid of those damn Union workers they might save a little to get them out of this mess, that's why prices skyrocketed in the 80's for cars.

I didn't vote for the Oman, but he did say that stuff, Back Bone of our economy and we need to help(shit I am suprised he said that)
At anyrate. 50 billion is a penny in the pot for something that is tangible and can be used in times of Crisis to make other things.
We gave 700,000 billion for stuff that can't even make a tangible product or help us in a crisis.
Bankruptcy and or collapse of any of the big 3 would drive us further down the economic hole we are already in.

Socialism is just fine with me as long as it serves my interests.

Socialism is just fine with me as long as it serves my interests.Well, it's not exactly socialism (though it does resemble it in many ways). The way I see it, it is more along the lines of a semi socialistic approach to help save democracy and capitalism as we know it. :D

If anyone truly thinks that this is socialism, just let the entire U.S. auto industry fail and then you'll REALLY see what socialism (and welfare/food stamps...bread/soup lines....government funded homeless shelters...etc.) can be. :nono:

Free trade should mean free trade. If Japan or any other country tariffs our vehicles, we should do the same. Fair is fair, there is no real good reason to buy a non U.S automobile anymore. This isn't the GM or Ford of the the '70s or '80s. Yes some fault lies with the big 3 for not making quality cars like the Malibu, Fusion etc. sooner, and getting caught with their pants down by making way to many SUV's and Trucks. It's time to take another look at Domestic cars and support them. Why buy a camry,accord, when you can purchase a Domestic? Like I said before, If GM fails we as a country fail. It's not just the few workers they employ, it's the dealers, suppliers etc. GM has a very big outreaching network. This country would be in a severe depression if that were to happen.

In our last work meeting it was determined that if the big 3 went under, it would cost over 3 billion dollars to the american people alone......

Free trade should mean free trade. If Japan or any other country tariffs our vehicles, we should do the same. Fair is fair, there is no real good reason to buy a non U.S automobile anymore. This isn't the GM or Ford of the the '70s or '80s. Yes some fault lies with the big 3 for not making quality cars like the Malibu, Fusion etc. sooner, and getting caught with their pants down by making way to many SUV's and Trucks. It's time to take another look at Domestic cars and support them. Why buy a camry,accord, when you can purchase a Domestic? Like I said before, If GM fails we as a country fail. It's not just the few workers they employ, it's the dealers, suppliers etc. GM has a very big outreaching network. This country would be in a severe depression if that were to happen.I agree.

In our last work meeting it was determined that if the big 3 went under, it would cost over 3 billion dollars to the american people alone......I'm betting it's way more than that.
Think in terms of tax base. Big corporations pay taxes. People who work and earn money pay taxes. The federal government gets most of it's income from taxes. Our military, our nation's entire system of homeland security, protection and survival, is funded by the taxes our government collects from said corporations and employed citizens.

Very simple (and quite frightening) actually.