GM and Chrysler ask for 21.6Billion More

[williamsvt]

The article can be found here at CNN Money or click the link:
http://money.cnn.com/2009/02/17/news...ion=2009021716


How far are the American people willing to go to make sure these companies survive at our expense? 21.6 Billion more the companies are asking from taz payers and there is no guarantee that either of these companies are viable options in the future.

Both companies predict slum auto sales for the next 4 years, and predict that the slump it auto sales will be the worst the companies have seen in 40 years.

Ford motor car company has managed to stay more afloat then either GM or Chrysler. Ford has a 9billion dollar credit line, but says it will only use it when it deems its absolutely necessary.

GM will be unloading the brands of Saab and Saturn. Saturn to be terminated in 2011, and Saab to hopefully be bought out by future investors.

The government needs to determine whether these companies are viable in the future and that if it invests more money, they can be assured that they will receive the money back.

My personal opinion, Obama cut your losses. These detroit companies will not survive. STOP spending tax payers money and move on.

[PowderedMilkMan]

I'm surprised Chrysler didn't go bankrupt 6 years ago, I really wouldn't be disappointed if either company went bankrupt although I'd miss the corvette.

[8ball]

I think it would be best to force a merger THEN make the needed supplements.

[Ralphie]

I think id have to agree with ya William.

I mean im all for American bought and sold but we outsource so much shit so in the end it is our fault.

These companies are sinking now because other companies engineered something better.

These same companies are sinking because they made "bad" decisions, i.e. not setting up their production lines to be able to be retooled to build the hottest selling car of the moment like Honda.

While in a perfect world we would love to salvage companies like these, if not for our Economy, but for Americana in the end what am I, me, and myself, paying for?

I feel like id never stray far from Honda. I know plenty of people that feel the same way, not to be rebellious or to be different, but because Honda works. If it didn't things might not be this way.

If you open a company and we all invest in it. You design and sell product A.

I open a company and i design product B. My product is much more efficient, has better build quality, can outlast yours by 10+ years, and all for cheaper(sometimes) then you can........................who do you think people are going to want to invest in?

So i feel the time has come. Their thinking is a way of the past and they failed to change with the times.

Not my fault.

[4GAccordH22]

There are more Hondas and Toyotas built in the US than there are GMs and Fords. Ford and GM farm out a lot of the parts manufacturing and assembly to Canada and Mexico. Oh, and Chrysler was ready to go bankrupt in the '80s! What did they do? The fired their CEO and brought in someone else that agreed to work for $1/year until the company was back on it's feet. From what I hear, a lot of the monies recieved from the US government (read OUR taxpayer dollars) went to executive bonuses and such. How about that? We're alll buying GM cars and driving Hondas. Whatever happened to capitalism? If you make an inferior product, don't expect to outsell your competition that makes better, more reliable and more fuel-efficient cars. Personally, I didn't agree with the FIRST government bailout of the automakers. If you can't sell your product, either improve it or close your doors. That, my friends, is capitalism. Nobody bailed out Circuit City and the government surely isn't going to pay my mortgage if I decide to do inferior work and have to take a pay cut...

[owequitit]

Oddly, it is getting to the point where by the time the job cuts are done, Honda might be a bigger US employer than GM. Wouldn't that be ironic...

[MikeW]

Yes it would Scott.

....I work for GM. Give me more money.

I may go to Honda if this keeps up.

[williamsvt]

There are more Hondas and Toyotas built in the US than there are GMs and Fords. Ford and GM farm out a lot of the parts manufacturing and assembly to Canada and Mexico. Oh, and Chrysler was ready to go bankrupt in the '80s! What did they do? The fired their CEO and brought in someone else that agreed to work for $1/year until the company was back on it's feet. From what I hear, a lot of the monies recieved from the US government (read OUR taxpayer dollars) went to executive bonuses and such. How about that? We're alll buying GM cars and driving Hondas. Whatever happened to capitalism? If you make an inferior product, don't expect to outsell your competition that makes better, more reliable and more fuel-efficient cars. Personally, I didn't agree with the FIRST government bailout of the automakers. If you can't sell your product, either improve it or close your doors. That, my friends, is capitalism. Nobody bailed out Circuit City and the government surely isn't going to pay my mortgage if I decide to do inferior work and have to take a pay cut...

Exactly. We didn't bailout circuit city and we're not bailing out many of the other companies on the list that was posted on this forum, because there are other companies that can provide the same products and have the funding to support their business.

I do have sympathy for the people whom are being laid off in detroit, but it comes to a point where the government needs to cut there losses and let these companies die.

Why have 21.6 more billion dollars go to these companies that will most likely fail. *its as if we're taking a bet at a casino, we have the risk of losing, and we have the chance of winning. However, the gov't would be doing this with OUR money, are we willing to take that risk?

[Accrdwgnguy]

In the early 80's, Chrysler also took a bailout of 1 billion dollars, but they had a plan, and they paid back that money in 3 years. I hope they have a good plan now. Also the whole auto industry has to work together to survive together. During Chrysler's first bailout, they had suppliers shipping them parts when they hadn't paid them in months, to keep them going. I don't see that happening now.

[jhoff]

fuck gm and chrysler, they produced nothing but shit for years and they deserve their fate. i dont feel a damn bit sorry for them. money hungry fucking ceos.

[starchland]

cock suckers. they cant run a business and know there asking for handouts.

bring back the k car

[MikeW]

So much for my raise.

[8ball]

Seriously just merge chrysler and gm. That way to can get rid of competetion with each other and make profit. Its funny that instead of being like mitsubishi or hyundai and just havinf one line of options instead of 5 different body styles with the same chassis they choose to compete against each subsidairy. w/e. They chouls keep the cobalt ss for sure.

[Night Wolf]

ha! Im glad they are dieing out. they dont build what the customers want they should die out

[IAmTheNight]

I don't exactly like the idea of giving them more money either, but it may be a necessary evil. If these companies go out of business, that's $50 billion lost in trade revenue, and we already have one of the world's largest trade deficits. Plus you have all the lost jobs, pensions, benefits, etc. Many of the former employees are gonna need government assistance and benefits and that's just going to be a further drain on government funds.