Big Three Bailout

[melliedee]

Originally Posted by TXMichelle

NOW we're talkin. Times are tough. I've almost picked up a case of Keystone or Busch instead of my usual Miller Lite, but I just can't do it...yet.

If the auto industry goes under and I lose my job , that's what I'll be drinkin!

ETA - But wait! Y'all may consider Miller Lite cheap beer...already.

Nope. Miller Lite is my standard. I go for Natty when I'm going cheap.

[roni]

Originally Posted by melliedee

Nope. Miller Lite is my standard. I go for Natty when I'm going cheap.

Go for flavor

Michelob Ultra Amber.

[horizon200]

And then there's this

detnews.com | Webvideo | Ford's most advanced assembly plant operates in rural Brazil

[Jacko]

Auto Industry Rescue Could Exceed Initial Requests
Executive Proposals Push Funding Past $25 Billion

Here

After carpooling from Detroit, a plan and some changes promised from Ford..GM and Chrysler tomorrow...feel any better about this? Excerpts....

Ford, unveiling a plan demanded by Congress as a prerequisite for federal aid, disclosed this morning that it expects to break even or become profitable in 2011.

The company also said it would invest about $14 billion in the United States on advanced technologies and products to improve vehicle fuel efficiency over the next seven years. And it provided initial details of a plan to build a family of hybrids, plug-in hybrids and battery electric vehicles. It said the last group, known as BEVs, would include a van for commercial fleet use in 2010 and a sedan in 2011.

In addition, Ford said it would cut costs further by selling its five corporate aircraft and would explore the possible sale of its Sweden-based Volvo brand. If the company needed to draw on a government bridge loan, Ford President Alan R. Mulally said, he would work for a salary of $1 a year.

GM chief executive G. Richard Wagoner Jr. also offered to work for $1 a year and said other top executives would accept major pay cuts.

...................

This time, Mulally and Wagoner made the more than 500-mile drive from Detroit to Washington in company cars, their firms announced. Chrysler said Nardelli was not traveling by corporate jet but declined to elaborate, citing security considerations.

...........................

Ford said it would undertake "aggressive restructuring actions" and introduce "more high-quality, safe and fuel-efficient vehicles," including a broader range of hybrids, as well as advanced plug-in hybrids and full electric vehicles.

Although the company is asking for up to $9 billion in bridge financing, it said it "hopes to complete its transformation without accessing the loan should Congress agree to make the funds available."

................................

Ford vowed to improve the fuel economy of its vehicles -- compared with its 2005 fleet -- by an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models.

It said it would also seek greater efficiency by reducing its dealer and supplier base. By the end of the year, the company estimated, it will have 3,790 U.S. dealers, 14 percent fewer than it had at the end of 2005.

[STOGEY]

In my opinion there should be no bailout.

[melliedee]

I think they should get the bailout. There are too many industries and blue collar jobs to let our auto industry fail. I'd rather they get a slice than another bank.

[sctx]

Originally Posted by melliedee

I think they should get the bailout. There are too many industries and blue collar jobs to let our auto industry fail. I'd rather they get a slice than another bank.

looks like Ford may survive, Chrysler and GM are toast, it just a matter if we want to pay for ordinary toast or really expensive burnt toast...... no sense in producing more inventory that won't sell, if the concern is jobs, build some roads and bridges

[horizon200]

I think Ford will survive, but they are going to take a huge it if the other two go under because of the impact to suppliers they all use.

I also think that they all need to look at a total restructure.

Sure there have been some concessions and looking at Energy efficient vehicles is a must do. But, those two items alone will not work.

A combination of bridge loans with a bankruptcy restructure and heavy contingencies tied to the loans. Additionally, they need to cut their product lines and dealerships.

Again, comparing them to the Toyota model...Toyota has 3 product lines. GM has 8! 7,000 dealers compared to 1,500! Employee cost of $74 versus $38 per hour.

If the CEO's don't come ready to address those issues, then they need to be shown the door. Saying you'll sell the corporate jets and take a $1 salary looks good on paper, but they should have been evaluating the cost of the jets all along and his "taking a $1 salary" may look good, but I'd like to see the fine print on that deal!

A good article by George Will
George F. Will - George Will - Let the Automakers Go Bankrupt - washingtonpost.com

Some telling numbers in this article
RealClearPolitics - Articles - Auto Bailout Won't Prevent Bankruptcy

And what if they become a single manufacturer (and restructure)?
Distilling the Big Three to One Could Save Detroit | Newsweek Business | Newsweek.com

[sctx]

Originally Posted by horizon200

I think Ford will survive, but they are going to take a huge it if the other two go under because of the impact to suppliers they all use.

the vendors will adjust to the market rather quickly I'm sure, since production in the future will be tied to actual demand and not stock inventory, doesn't matter if there are two or just one major US manufacturer, consumer demand will dictate production volume from now on ( Toyota execs are smiling at that realization).......Chrysler may squeak thru depending on the economy, at least they have a well defined target market...... GM is all over the place, they have no clue as to what market they are trying to compete in, the only place they succeed is in mediocrity

[horizon200]

I haven't fully read through it yet...but here's Ford's plan

http://online.wsj.com/public/resourc...Plan122008.pdf

[Jacko]

As I have said before....I don't particularly care about saving Ford, GM or Chrysler....I do care about saving our general economy. If we have to try to save the auto companies to save the economy than so be it...it is above my knowledge level to have an informed opinion...I hope they make the correct decision.

I think there will be a deal worked out...I don't think the potential problems (right now) will be seen to be worth the potential risk (right now) of agreeing to guarantee the loans........

[sctx]

Fritz Henderson COO of GM - "There isn't a Plan B.....Absent support, frankly, the company just can't fund its operations."

Fritz........ you're FIRED !!!!!!

[melliedee]

Head of the steel workers union had an interesting perspective on the auto bailout: that the govt is willing to bailout those who shower before they go to work, not those who shower after.

[sctx]

Originally Posted by melliedee

Head of the steel workers union had an interesting perspective on the auto bailout: that the govt is willing to bailout those who shower before they go to work, not those who shower after.

total BS........ everybody knows union steel workers never shower

[Bumper]

Originally Posted by melliedee

Head of the steel workers union had an interesting perspective on the auto bailout: that the govt is willing to bailout those who shower before they go to work, not those who shower after.

But you'll note the steelworker's union boss isn't mentioning the billions in subsidies and support the incredibly inefficient and outdated US steel industry has received. Just look at the rationalization and closures and consolidation that took place after some of those plugs were pulled. Ya' gotta' break some eggs. While I feel a significant bailout is appropriate, I also believe at some point you have to turn off the machine, and not everyone will necessarily survive.