Fed bailout for auto manufacturers/unions

[ARCHIVED THREAD] - Fed bailout for auto manufacturers/unions

Posted: 3/21/2006 10:12:27 AM EDT

When/if Ford or GM file for bankruptcy, will the Federal Gov make taxpayers bail them out (like the airlines)? I am guessing it will happen.

It is anticipated that one or the other will probably file by 2008. Great election year issue…. it would be politically expedient, especially for Democrats, since they are aligned with organized labor. I doubt Republicans have the spine to say no to the unions as well. I can think of a dozen arguments that might be used to justify a bailout, but every argument against doing so will be viewed as unfair to the working Americans who depend on auto manufacturing.

What say you?

Posted: 3/21/2006 10:15:39 AM EDT

[#1]

If Jerry York can get GM turned around,it won't be needed.

Posted: 3/21/2006 10:16:48 AM EDT

[#2]

Quoted:
If Jerry York can get GM turned around,it won't be needed.

Will selling GMAC help them do that?

Posted: 3/21/2006 10:18:22 AM EDT

[#3]

ford wont be filing...

Posted: 3/21/2006 10:48:23 AM EDT

[#4]

Quoted:
Quoted:
If Jerry York can get GM turned around,it won't be needed.

Will selling GMAC help them do that?

I don't know,it would help them in the short term,but GMAC is the cash cow,however GM losing $$$ makes GMAC harder to sell when GM's credit rating is tanking. Jerry York wants to see SAAB and Hummer dropped. What would REALLY help GM would be the perception that their products are not reliable,they have made great strides in quality(as have Ford and DCX). Also,whats killing the big 3 is the pension issue,I'm torn on that one.

Posted: 3/21/2006 10:48:38 AM EDT

[#5]

Quoted:
Quoted:
If Jerry York can get GM turned around,it won't be needed.

Will selling GMAC help them do that?

I'm thinking that GMAC is the only thing starting with "GM" that is making money right now.

Whatever they do, it better include busting up the unions or it ain't going to do any good and the lingering death of a thousand cuts will continue.

Posted: 3/21/2006 10:56:22 AM EDT

[#6]

Bush was in Detroit about a month ago and flat out told the auto industry that he wouldn't bail them out that they better work smarter and build cars that people want. Of course I don't think the decision is left just up to Bush. That was a nice bitch slap to the unions that worked hard to make sure he didn't get re-elected.

Posted: 3/21/2006 10:56:47 AM EDT

[#7]

Any bailout would be worthless, GM doesn't need cash, it needs profit.
A massive restructuring of it's contracts is probably the only thing that can save it.

Posted: 3/21/2006 11:05:31 AM EDT

[#8]

Quoted:
Any bailout would be worthless, GM doesn't need cash, it needs profit.
A massive restructuring of it's contracts is probably the only thing that can save it.

Yes,something like what Toyota has(and compared to a whole lot of other jobs,they are treated well,good medical plan,401k,vacations,ect......) I could'nt just see myself working there,though.

Posted: 3/21/2006 11:10:23 AM EDT

[#9]

Will a bailout help them make better, more attractive vehicles? Nope.

I'd rather spend the money on border security than bailing out car manufacturers. Our auto industry needs an enema if it's going to bounce back strong.

HH

Posted: 3/21/2006 11:11:27 AM EDT

[#10]

The unions would rather ride the company into the ground than work eight hours for a fair wage and benefits package. That happened to Firestone near where I am sitting right now. They called for a boycott to "teach them a lesson." We did--the company shut the plant down. Boycott worked. Of course, the union was shocked to find out there are no jobs if the product isn't sold. Several years later they are still whining about it.

Posted: 3/21/2006 11:16:23 AM EDT

[#11]

It's probably even odds, mojo.
My feeling is that we'll find out sooner rather than later. I expect GM to bite the dust within the coming year.

I've been reading some of the statements issued by GM's top brass. They have an entrenched and lousy attutude that is going to kill them real soon.

One bright spot. Pres. Bush was recently asked if the federal government had a plan to bail out Detroit and his answer was that, "They need to start making relevent cars."
This is a possible clue that at least HE'S not enthusiastic about the idea of a bailout.

And one can also ask the very reasonable question, "If GM needs a taxpayer bailout, where's all the money going to come from what with all the money needed for everything else lately; Iraq, Katrina, Rita, Homeland Security, etc.?

Posted: 3/21/2006 11:19:57 AM EDT

[#12]

There is nothing wrong with GM that making good products won't fix.

(except maybe the whole union/pension/healthcare thing)

Posted: 3/21/2006 11:22:25 AM EDT

[#13]

China is going to start importing cars sometime within the next 18-24 months...

If cars are anything like electronics, it won’t be long until all the "GM" cars are made in Hunan.

Posted: 3/21/2006 11:28:57 AM EDT

[#14]

Too many brands! Jerry York is the guy brough in by Kirkorian(sp?)to turn things around(he turned around Chrysler and IBM).

Posted: 3/21/2006 11:33:22 AM EDT

[#15]

Quoted:
There is nothing wrong with GM that making good products won't fix.

(except maybe the whole union/pension/healthcare thing)

that right there is enough to cripple the company even if they make the best cars on the road.

Posted: 3/21/2006 11:35:58 AM EDT

[#16]

I say they should stop making the same crap over and over again and lower their costs to consumers instead of doing the same old same old and expecting Uncle Sam to back them up.

Posted: 3/21/2006 11:43:05 AM EDT

[#17]

I wouldn't touch an American vehicle with a ten-foot pole.

[ARCHIVED THREAD] - Fed bailout for auto manufacturers/unions

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