GM in trouble

[redorange]

Ok for millions of people to lose their jobs?

When GM goes down, they will shut down not only their domestic plant, but their plants around the world.
Another problem is the Auto Parts supplier, they are shared between the big 3 and other foreign companies that have US plants, this includes Toyota.
If their biggest customer disappears, they will be forced to shut down and if that happens other carmakers will have to stop production in their US plants, its a chain reaction.


Update: Just to show how bad the situation is for both Domestic and Foreign carmakers....

November 2008 Sales, compared to the sales of the same month last year

Ford: -32.6 % (dropped to 122,723 units)
GM: -41 % (dropped to 154,877 units)
Chrysler LLC: -47 % (dropped to 85,260 units)

Toyota: -33.9 % (dropped to 130,307 units)
American Honda: -31.6 % (dropped to 76,233 units)
Mazda: -31.3% (dropped to 14,134 units)
Nissan: -42% (dropped to 46,605 units)
Mitsubishi: -36.2% (dropped to 5,096 units)
Subaru: -7.8% (dropped to 13,706 units)
Suzuki: -46.3% (dropped to 3,216 units)
Hyundai Group: 38.6% (dropped to 34,403 units)
VW: -21.5% (dropped to 21,290 units)

PS: Different brands/divisions under one company are combined (example: Chrysler = Chrysler/Dodge/Jeep, Toyota = Toyota/Lexus/Scion, Hyundai Group = Hyundai & Kia, VW = VW/Audi/Bentley etc)

To see the rest click here: http://www.autonews.com/article/2008...1078/FRONTPAGE

AG4 is right the last I watched on the news they estimate about 3 million unemployed if the big 3 close and unemployment to rise to 10%. 3 million unemployed would be more of a burden than letting them borrow the 25 billion they need to survive. Unlike in the Philippines these 3 million people would be collecting unemployment benefits, food stamp, and other social welfare programs which in the long run will cost tax payers more money. Would you rather the government spend the 25 billion to keep people employed and paying taxes or save the money and spend more so these people can survive? In the mean time that they collect on these programs they will not be paying taxes. Personally I would rather that these people be employed and paying taxes than me having to feed them with the taxes I pay.

I guess it's easy to comment about companies shutting down from the Philippines when it isn't your community being affected by the shutdown.

[v6dreamer]

AG4 is right the last I watched on the news they estimate about 3 million unemployed if the big 3 close and unemployment to rise to 10%. 3 million unemployed would be more of a burden than letting them borrow the 25 billion they need to survive. Unlike in the Philippines these 3 million people would be collecting unemployment benefits, food stamp, and other social welfare programs which in the long run will cost tax payers more money. Would you rather the government spend the 25 billion to keep people employed and paying taxes or save the money and spend more so these people can survive? In the mean time that they collect on these programs they will not be paying taxes. Personally I would rather that these people be employed and paying taxes than me having to feed them with the taxes I pay.

I guess it's easy to comment about companies shutting down from the Philippines when it isn't your community being affected by the shutdown.

Got that right bro:banana1:

[Monseratto]

They don't have the votes yet...

Automakers plead with Congress; votes lacking

WASHINGTON – Imperiled automakers and their union worked feverishly Wednesday to sell a skeptical Congress on a $34 billion aid plan, promising labor concessions and restructuring, but the Senate's Democratic leader said there still weren't enough votes to tap the $700 billion federal bailout fund to prop up the foundering Big Three.

One day after the auto companies sent survival plans to Capitol Hill in an urgent plea for bailout billions from the fund, Sen. Harry Reid told The Associated Press in an interview, "I just don't think we have the votes to do that now."

The United Auto Workers union, scrambling to preserve jobs and benefits, agreed at an emergency meeting in Detroit to allow the companies to delay payments to a multibillion-dollar, union-run health care trust and to scale back a jobs bank in which laid-off workers are paid most of their wages. The concessions could help mollify some lawmakers who have criticized the union's benefits as too rich when compared with those of workers at foreign-brand auto plants in the U.S.

http://news.yahoo.com/s/ap/20081203/...congress_autos

[Monseratto]

They dumped their jets and came in their hybrids...

General Motors CEO Rick Wagoner, steps from a Chevrolet Malibu Hybrid car Wednesday, Dec. 3, 2008, at his hotel in Washington after driving from Detroit to testify at Congressional hearings on the auto industry bailout. If the Detroit Three automakers have learned anything since their last trip to Washington, it's that the old way of doing business just won't fly. So the decision by auto executives to travel in hybrid cars rather than corporate jets is just the start to overhauling their image as the industry pleads its case for $25 billion in federal loans.
(AP Photo/Gerald Herbert)

[uls]

[tidus1203]

For the past many years car buying is primarily funded by CREDIT. Its very rare in the US to buy the car in cash... Now that credit is hard to come by, car sales has come back to reality that Americans can't afford those cars without touching their future income (that is if they are not the unfortunate ones to get axed or if their business is still standing strong)

[uls]

Now that banks have tightened credit, only the most credit worthy borrowers get loans (very high FICO score)

that's only a small fraction of consumers

[tidus1203]

Reality check for the industry. I think the big, expensive, gas guzzling cars are now gone. From now on small, inexpensive is the way to go. Cars that people can really afford and don't have to go into debt just to get it.

[LexTer]

November 2008 Sales, compared to the sales of the same month last year

Ford: -32.6 % (dropped to 122,723 units)
GM: -41 % (dropped to 154,877 units)
Chrysler LLC: -47 % (dropped to 85,260 units)

Toyota: -33.9 % (dropped to 130,307 units)
American Honda: -31.6 % (dropped to 76,233 units)
Mazda: -31.3% (dropped to 14,134 units)
Nissan: -42% (dropped to 46,605 units)
Mitsubishi: -36.2% (dropped to 5,096 units)
Subaru: -7.8% (dropped to 13,706 units)
Suzuki: -46.3% (dropped to 3,216 units)
Hyundai Group: 38.6% (dropped to 34,403 units)
VW: -21.5% (dropped to 21,290 units)

outch....... alam na natin kasunod nito. kawawa mga nawalan ng work. tsk tsk tsk.

[uls]

working in a company that gives employees a lot of benefits is great

but u have to look at how much it costs the company and how profitable the company is

GM is still living in its glory days

oo number 1 ang GM dati

kaya GM can afford to provide above-industry-standard employee benefits

pero GM's market share has been declining for decades

and it is still providing the same above-industry-standard benefits to its employees

How the hell can GM afford that?

it's not sustainable