GM in trouble

[AG4]

Nissan nearly went bankrupt, it was rescued by Renault. Mazda also almost went under before it was rescued by Ford. Note: no japanese goverment intervention here.

I don't think any company has extra cash to rescue another company now.
Even Toyota had to layoff 3,000 workers in Japan and suspended production in some of their plants.

[AG4]

Also here is another thing, the private equity firm who owns Chrysler right now Cerberus does not even want to put more money into the company.

Cerberus is even blaming Daimler for not telling them about the real condition of Chrysler when they bought it from them. Huh?

Cerberus is stupid for not doing any research when they bought Chrysler from Daimler.

Maybe a chinese automaker should by them, like Chery?
wasn't Chrysler supposed to be working on a new sub-compact car with Chery? hmmm....

[tidus1203]

Well the Daimler story is another story and is irrelevant to this bailout. Whether Daimler committed fraud is irrelevant if Chrylser should get a bailout or not. The fact is as it stands Cerberus knows its a sinking ship so they don't want to commit their own money and ask the taxpayers to commit theirs.

[Gerbo]

The US auto bailout is simple to explain...

....the government has to step in because mass layoffs arising from the downfall would not be politically expedient as people lose their jobs, life savings, etc. and will add further to the crisis bracing for a full blown recession. This might result to chaos, increase crime rate, etc.... quite grim really.

....the auto managers, knowing the government will extend a helping, are not helping any by having a viable plan....they are now like beggars na lumalaki ulo.

Puede naman compromise....but it would be like "nationalizing" the US auto industry.

[Monseratto]

[ame=http://www.youtube.com/watch?v=xAs1yTLuv00]Inside Look: Opposing the Auto Industry Bailout[/ame]

[tidus1203]

You bail them out, people have no money to buy cars. Wala pa rin. In order for them to survive they have to sell cars and really now even in the good times they were already losing money... So talagang flawed ang business model ng GM and Chrysler.

And I think the BIG 3 bosses are exaggerating so much the job losses. While even the most hardcore anti-bailout will admit that there will be a lot of job losses and it will be very painful, going through bankruptcy does not mean job losses. Yes as part of bankruptcy some jobs will have to be axed to make the company leaner no question about that, but if they go through liquidation someone will buy their assets. Maraming potential buyers dyan for sure (at the right price that is, bankruptcy prices that is) from the likes of India's Tata to China's Shanghai Automotive, to South Korea's Hyundai. That is a chance for those survivors to steal market share. So the free markets if allowed to function rewards the survivors who managed their business well and punishes the incompetents through bankruptcy.

[Horsepower]

Hyundai was offered to buy Chrysler but they declined. LOL.

Good thing Daimler got rid of Chrysler early on (though they've lost several Billions in the process). In a way, there's nothing wrong in NOT telling that Chrysler is a money pit, it's the responsibility of the buyer to know that. hehehe

[Burai]

to add more on sir tidus' previous comment, there's just no chance of surviving kahit tulungan sila ng pera saglit kung di naman bebenta mga cars nila. kahit may pera man mga tao, would they still buy one? lalo na't ngayon hindi na stable status ng chrysler and the others?

if they're back on track naman, wala naman pera mga tao pambili or pang maintain due to financial crisis

might as well bumaba build quality ng cars nila kung magresume man sila ng job nila


anyway, i love the debate. pumitik yung mayor
what that shelby said could be quoted too

[tidus1203]

Well, it looks like they will get a bailout afterall something in the region of $15B just to get past March 2009 Imagine they need that much just to get past March? What about beyond that. GM stock, and Ford stock rose sharply in response. Kudos to Ford though they don't need the short term bailout but still insist bailing out their competitors.

http://www.bloomberg.com/apps/news?p...d=aB8rxxGEpWAk

[uls]

GM burns 2 billion a month

grabe no?