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02.17.2009 10:52 am

Revving up for automakers’ restructuring plans

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American automakers Chrysler and General Motors are asking for more government aid in their attempt to become “going concerns” again.

GM is expected to release its plan after 6 p.m. today. Chrysler is expected to follow. Both are required by the terms of government loans they received in December to submit restructuring plans today.

Read the Bloomberg piece here.

Both companies need concessions from the United Auto Workers and creditors. Whether that’s possible remains to be seen. Negotiations with the UAW continued last night and have resumed this morning.

GM is expected to close plants and reduce the vehicle lines it offers — probably Saturn, among others.

Some are wondering if bankruptcy truly is the best option for the carmakers now.

And at the White House, President Barack Obama dropped the “car czar.” Politico says Obama’s dallying on an auto rescue plan is delaying the recovery.  Politico writes:

And by taking longer than expected to decide which way to go, President Barack Obama is drawing fire from industry analysts and some key Democrats who fear he has inadvertently delayed help to an auto industry frantically trying to bail itself out.

9 comments

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They would have gone into bankruptcy just fine by themselves. Now, they are going to go into bankruptcy after receiving a bunch of tax dollars that did nothing but delay the inevitable. And no “car czar” as promised either. The Democraps stickit to the tax paying middle class once again…

— Tim
11:42 am February 17th, 2009

The government should keep them afloat and they will truly be American owned just as banks own everything that we take out a loan for until every red cent is paid back.

It would be stupid to let them fail because automobiles are truly a need and that need is not going to disappear. And, we should not depend solely on foreign owned companies for this need of ours. These companies will be American owned in the truest of senses now. It is not such a bad deal, plus greed and bad conduct can now be weaned out of these corporations and good conduct demanded and required.

— D. Walker
12:31 pm February 17th, 2009

Structured bankruptcy. The sooner it happens the better. Scrap the UAW contracts and other profit killing programs. Get back to making cars people want, not crap Congress tells them to make. There in NO ONE in congress or in the administration that has any clue about running a car company, so they should stop acting like they have a damn clue.

What is the opposite of progress? CONGRESS!

— Si Vis Pacem Para Bellum
1:07 pm February 17th, 2009

D, no one is saying they should fail. They should go into bankruptcy and reorganize. The current state of the Big 3 is so pathetic that it is amazing they have lasted this long. There will always be car manufacturing in the U.S. Thank God we won’t get a “Car Czar” because Uncle Sam is the last person you want running anything…

— Tim
1:58 pm February 17th, 2009

Si,

And you think that the ones who run the automobile companies are wise and know what they are doing? All the different models, way too many for any manufacturer of cars alone show that these running the automobile companies are not very wise.

Wasn’t it the people who desired SUV’s? The people’s desires and wants hurt them and was not good for this country or the automobile companies, were they?

Do you ever stop and think about the thoughts in your head compared with reality and what is really true?

— D. Walker
2:05 pm February 17th, 2009

Tim,

Let me ask you this, or anyone who can answer because I don’t know.

In the case of bankruptcy, what will happen to all the retiree benefits that retirees receive and are owed? And what about those who are expecting to retire now?

I also think that now that corporations are at the mercy of our government, they will no longer be able to run our government any longer as they have been doing for so long. Why can’t you see that it is and has always been corporations who have corrupted our government/politicians?

— D. Walker
2:13 pm February 17th, 2009

“And you think that the ones who run the automobile companies are wise and know what they are doing?”

They could do no worse a job as Congressmen than the members of Congress presently are. Which member of congress do you think has the ability to run a car company?

“All the different models, way too many for any manufacturer of cars alone show that these running the automobile companies are not very wise.”

Says who? Why do you get to tell the guy who likes Buick’s that he cant have one because that brand is going to be cut? If sales will support it, why not have 100 different models?

“Wasn’t it the people who desired SUV’s? The people’s desires and wants hurt them and was not good for this country or the automobile companies, were they?”

Yes, and it still is people who desire big, powerful, safe SUV’s. The SUV sales were a boom for the Big 3, and for America. The fuel efficiency models dont make car companies money because they are a niche market. Take Chevy’s new Volt; they anticipate a loss of almost $10,000 per vehicle to market it at $30K. Who would produce a car that could only be sold for a $10K loss?

“Do you ever stop and think about the thoughts in your head compared with reality and what is really true?
D– Walker ”

One could ask the same of you….

— Si Vis Pacem Para Bellum
2:27 pm February 17th, 2009

DW>It would be stupid to let them fail
DW>because automobiles are truly a need and
DW>that need is not going to disappear. And, we
DW>should

By this I will assume you mean that sort of industry
is necessary to have in time of all-out war, since
otherwise automobiles are mainly a personal luxury
we afford ourselves.

In the case of such a war as long as the foreign
manufacturers have placed sufficient numbers of
manufacturing plants in your country, you have
their plants to use to produce the machines of
war. They might or might not like it, but the point
is the factories are here.

How likely is all-out conventional war now?

T>Thank God we won’t get a “Car Czar”
T>because Uncle Sam is the last person
T>you want running anything…

Don’t be so sure. These big businesses are as large
and hidebound often-times as a government, especially when you get an entire “industry” involved in trying to set policy or standards.

Because of the government “getting involved” I can take that “candlestick” telephone I saw on Andy Griffith the other morning and put a modern modular plug on it’s wire and connect it to the modern phone lines and dial out and take calls on it and talk on it to anyone you can with a phone manufactured next year.

You don’t have to buy a new telephone every three to five years just to keep talking to people on the phone–though some of you chuse to.

I use older computers–as old as I can–and they’re only partially functional in doing anything which requires them to interact with other systems. Meanwhile, the industry big-hitters make sure their computers are all so backwards-compatible for their convenience and economy that they all run Linux.

I’ll bet they will be ’til the crack of doom.

Meanwhile, a notable motor-vehicle example:

When it became apparent that the exhausts from automobiles were literally killing people in cities and contributing significantly to less-than-perfect health in other less denseley-populated areas the government mandated cleaner-running cars.

Your wonders of production and intelligence in management all started wringing their hands and whining this would cause them all to go out of business if they were forced to clean up their tailpipe emissions. They went through a stage where they used the most improbable retard methodologies to just barely come into compliance at great expense passed on to the consumer–especially in later maintenance costs–but eventually they all finally gave up and quit acting like negroes and it wasn’t too long after that we had really clean-running cars and they could be had for an affordable cost. Some will say they were “a lot more expensive” but the currency was highly devalued too.

So, government “butting in” is not always evil or bad.

As to what would happen to retirement benefits if these top-heavy dinosaurs file for bankruptcy , look at the alternative–they go out of business and foreign manufacturers buy up such of their production facilities as are worth trying to use and rehire many of their former employees. Do you think they’re going to get those types of wages and benefits then? So if reorganization should lose a lot of these overpaid slugs their unrealistic expectations of retirement and lay-off benefits, WELCOME TO THE REAL WORLD.

Since the autoworkers didn’t grab their hats and go stomping out of their relatives’ houses when they went to visit for Thanksgiving and found a foreign-made television in the living room we’ve come to find ourselves in a “global economy”, meaning that we find ourselves in competition with workers in the developing world–often times in climates where they don’t even have to worry about those $300 mid-winter heating bills.

Let’s quit being silly, shall we? The Cold War is over. The high-and-mighty are no longer going to keep sacrificing the rapacious profit margins they’d prefer to stave off a surly working class prone to joining commie “front” organizations. The unions are all but broken wrecks of what they once were–mainly because their business agents found out they liked coming to a meeting with the company executives on an even basis in the haberdashery sense, and to ride to them in a limousine instead of a broken-down “whoopty” like their rank-and-file ought to be driving. They forgot the issues were keeping the predatory industrialists from working their membership to the edge of death and then finishing the job with toxic and/or workplaces whose mechanical dangers alone often rivaled a battlefield in danger to life and limb. With some notable exceptions they went for the brass ring, then having got that, started grabbing for a gold ring which never was in the cards for their membership.

They priced themselves out of the developing global labor market.

I guess they could have plowed some of their extorted gains back into trying to organize the developing world, but they didn’t. How hard could it have been? Most of those places governments are for-sale-to-the-
highest-bidder.

Oh well. They played, now it’s time to pay.

And if you think now might be the time to bring forth domestic communist insurgency and scare the big-boys at the top of the ladder into coughing-up and sharing more equitably with their peons, then think Waco.

— Urban B. Light
9:15 am February 18th, 2009

Urban B. Light,

You state:

“And if you think now might be the time to bring forth domestic communist insurgency and scare the big-boys at the top of the ladder into coughing-up and sharing more equitably with their peons, then think Waco.”

———————————–

Explain yourself Urban B. Light and stop with your cowardly subtle threats. Are you saying that you are a demonic sick White terrorist and there are many others just like you ready to take up arms? Do you think everyone fear Satan?

— D. Walker
3:17 pm February 18th, 2009