Tuesday, November 11, 2008

Scary

GM's Skid Quickens as Crunch Raises Bankruptcy Threat (Update1)

Nov. 11 (Bloomberg) -- General Motors Corp., burning cash as U.S. sales slide, is being pushed closer to bankruptcy as it waits to learn whether the auto industry will win a new round of government loans. The prospect of a forced liquidation raises the stakes for GM's quest for new federal borrowing after saying on Nov. 7 it may run out of operating cash as soon as year's end.The failure of GM in an event where the company stops production would cost 2.5 million jobs in the U.S. in the first year, according to a study by the Center for Automotive Research in Ann Arbor, Michigan.

Posted by sovietuk @ 09:59 AM (2115 views)
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15 thoughts on “Scary

  • tyrellcorporation says:

    Nationalisation in all but name – POP! goes the American dream. It would seem they’re no better than the French when it comes to protectionism. Looking longer term, if these behemoths survive you’re still left with vast bloated inefficient car plants that sell cars nobody wants. It all smacks of Britain in the 1970’s and crap companies like British Leyland et al. Let them go to the wall and use these mad bailouts to give tax-cuts to industries that are doing well and growing. The Japanese and Germans are the best nations on Earth at making cars; they will continue to dominate and so they should.

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  • is it worth bailing out this company for the second time? i doubt it ever paid back the last loan, this company should be allowed to go, no doubt pieces would be picked up and smaller companies would make better use of both staff and tech..

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  • is it worth bailing out this company for the second time? i doubt it ever paid back the last loan, this company should be allowed to go, no doubt pieces would be picked up and smaller companies would make better use of both staff and tech..

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  • I hate to say it, but maybe there are too many car manufacturers. If they need government loans so soon after the biggest consumer boom in history this must be a classic example of pouring good money after bad.

    IMO opinion cars these days should easily last 15 years (they did in the 70’s – well volvos did anyway). Due to the way cars are bought these days ie on credit, there seems to be a culture of changing a car every 2-3 years. Given the environmental benefits of not building as many cars maybe we should be designing and building them to last longer and create something useful for half the car industry that are now not required.

    Easy to say but wouldn’t it be better if the manufacturing capabilities of Ford and GM were put to better use – helping to reduce the cost of manufacturing products that produce free power for example, instead of making cars we don’t really need.

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  • “America has two auto industries. The one represented by GM, Ford and Chrysler is Midwestern, unionized, burdened with massive obligations to retirees, and shackled to marketing and product strategies that have roots reaching back to the early 1900s.

    The other American auto industry is largely Southern and non-union, owes relatively little to the few retirees it has, and enjoys a variety of advantages because its Japanese, European and Korean owners launched operations in this country relatively recently. Their factories are newer, their brand images and marketing strategies are more coherent — Toyota uses three brands in the U.S. to GM’s eight — and they have cars designed for the competitive global market that exists today.”

    http://online.wsj.com/article/SB122608860916209213.html

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  • let it collapse it will be best for all

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  • let it collapse it will be best for all

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  • Who needs GM anyway? The’ve had 40 years since the Japanese arrived on the scene to get their act together, yet they still think Monster Trucks are the way to go. Am sorry for the workers but – like our coal miners two decades ago – the products they make are an anachronism and designed to go the way of the dodo.

    2.5m jobs though … scary stuff. Makes a bail-out inevitable but surely must go with strings attached re environment.

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  • somehow i get the feeling they wont get the bailout….

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  • tyrellcorporation says:

    A friend of mine’s dad worked as a car dealer in the 1970s. My friend can remember him pulling up the boot carpet on an Allegro Vanden Plas (whilst it was still in the showroom) to reveal a large patch of rust.

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  • a vandan plas a classic… anyone ever watch minder you can see these great old cars looking new on there..lol

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  • Most cars were rubbish in the 70’s it’s just that other governments such as Italy & France supported their car industries and their public bought their own cars where as here in the UK the government & media hung the car industry out to dry and we decided not to buy our own cars and buy foriegn cars instead. That is why you see plenty of French & Italians cars about now but no British cars.

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  • 10. mrmickey said…

    “Most cars were rubbish in the 70’s it’s just that other governments such as Italy & France supported their car industries and their public bought their own cars where as here in the UK the government & media hung the car industry out to dry and we decided not to buy our own cars and buy foriegn cars instead. That is why you see plenty of French & Italians cars about now but no British cars.”

    Well said. Don’t complain about Tesco taking over if you do your shopping there. Don’t complain about high house prices if you bought one. Don’t complain about the decline of the British car industry if you didn’t buy a British car.

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  • shipbuilder

    I don’t use tescos generally but think they’re quite good so won’t complain, I didn’t buy an overpriced house and still complain (on here) about them. I didn’t buy a British car cause they’re mostly rubbish or very expensive, or very expensive and still rubbish, I still feel I have every right to complain about our car builders not being able to compete with the Germans. If they made good cars in the first place they’d have made more money and if they’d then invested that money in better design & plant etc they’d have even better cars which I’d still buy. But they didn’t, they went on strike.

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  • str2007 – The thing is though that workers going on strike has little to do with whether a company’s cars are good or not. That’s up to the designers and management. Actually a fortune was spent on design and plant and some good cars came out of it, but mostly rubbish. It still came down to the fact that the public didn’t buy them. I don’t remember either Fiat nor Renault having fantastic cars in the 70s or 80s, yet they’re still about.

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