GM in trouble

[alainroyce]

Dope. Mukhang tuloy nga yung bailout na butata lang tayo for a day or two. Kinda like how the financial bailout first failed but with so many political pressure pumasa pa rin in th end... I wouldn't be surprised if another non-financial industry comes running for some TARP money. Perhaps retailers if spending really sag. And they will use the same excuse of job losses... And definitely the automakers are coming back for more. $15B is just too small...

Tuloy nga daw.. naka flash pa sa CNN...patay ang mga taxpayer nito.

[Monseratto]

Puso niyo Lolo...

[ame=http://www.youtube.com/watch?v=_DgraUoeDBg]12/12/2008 Peter Schiff: Will Washington Save Detroit?[/ame]

[eggman]

Wish ko lang matuloy na ang bailout sa GM t iba pang automakers para matapos na ang problema..

[uls]

It will cost the US govt billions of dollars every month just to keep the automakers alive

$14B will just keep them alive for a few weeks.

it's like supporting a bum

the bum doesnt make any money

but you have to feed the bum everyday

you have to spend your money feeding the bum, hoping one day the bum decides to look for a job, and finally be able to support himself

The US govt will be supporting the automakers until they will be able to sell cars, make money, and stand on their own.

How long will that take?

i'm sure it won't just take weeks

or months...

it will take years

[tidus1203]

Wish ko lang matuloy na ang bailout sa GM t iba pang automakers para matapos na ang problema..

Sorry po for the disagreement but I think that is a very short sighted view on the whole matter. The demise of inefficient companies in the long run will be better for the industry where only the strong remain.

[tidus1203]

*Monseratto

Ayos yang video na yan ah especially sa beginning. Trade your Dollars for Physical Assets before your dollars become worthless

[AG4]

Sorry po for the disagreement but I think that is a very short sighted view on the whole matter. The demise of inefficient companies in the long run will be better for the industry where only the strong remain.

You'd probably think the big 3's japanese competitors probably feel the same since they "might" enjoy bigger sales when GM, Chrysler etc go down...

..but even their competitors support them.
Big 3 rescue wins rivals' support

They may be unrelenting rivals of Detroit's Big Three, but foreign-based automakers don't relish the prospect that one or more of Detroit's automakers might go under.

On the contrary, the risk that one of the U.S. car companies could collapse deeply worries Asian and German manufacturers with U.S. factories.

As the industry's outlook has deteriorated in recent months, executives at foreign car companies have said they want to see Detroit's cash-strapped automakers get through the crisis, noting that they all share the same network of suppliers.

"We're joined at the hip with our Detroit brethren in manufacturing," said Irv Miller, group vice president and chief spokesman at Toyota Motor Corp.'s U.S. sales subsidiary. Whatever the U.S. government proposes to keep the U.S. automakers afloat, "we support it," Miller said.

In recent months, foreign automakers and parts suppliers have tried to work out contingency plans in the event of a collapse of one of Detroit's Big Three. But executives say they would not be able to shield themselves from the impact of an automaker's collapse because the number of distressed suppliers in North America already is in the hundreds.

http://detnews.com/apps/pbcs.dll/art...TO01/812130355

There are many companies being compared to the auto industry, but you can see how much bigger this is. When the news broke out that the US auto bailout didn't push through the other day caused the Global Stock Market to sink!
Global stocks dive as rescue talks fail
http://money.cnn.com/2008/12/12/mark...ion=2008121204

I think the UAW is a bigger problem than the actual products of the big 3, because the US carmakers actually sell about as many cars as their foreign competitors, but they pay their UAW workers much more than the non-union workers of foreign carmakers.

PS: Most of the time, the media always mentions that the $14 billion bailout will go to the big 3, this amount is actually only going to GM and Chrysler.

The bill called for $14 billion to be divided between GM and Chrysler, both of which are at the financial breaking point as the recession and consumer credit crunch have crippled their finances.

http://www.businessweek.com/bwdaily/...pStories_ssi_5

[AG4]

btw, sino ba may-ari ng dodge sa tatlo, i'm kinda eyeing the Dodge Nitro next year when the collapse happens. magmumura siguro ito car na ito

Dodge is part of Chrysler.

[tidus1203]

You'd probably think the big 3's japanese competitors probably feel the same since they "might" enjoy bigger sales when GM, Chrysler etc go down...

..but even their competitors support them.

Yeah because the short term shock will be massive...

[AG4]

Yeah because the short term shock will be massive...

...and thats all you need to make the "auto parts suppliers" that supply parts to both domestic and foreign automakers in the US go bankrupt.
No parts = no production = closing down the factories

In recent months, foreign automakers and parts suppliers have tried to work out contingency plans in the event of a collapse of one of Detroit's Big Three. But executives say they would not be able to shield themselves from the impact of an automaker's collapse because the number of distressed suppliers in North America already is in the hundreds.

- http://detnews.com/apps/pbcs.dll/art...TO01/812130355