If GM FAILS

[KonaKing]

This thread got redug up, and it had me thinking. What do you guys think of the auto companies claiming that bankruptcy is not an option? I'd personally like to hear more than "consumer confidence" as a reason, frankly. I'd be curious to hear peoples' thoughts on this.

Bankruptcy is not an option because the federal gov has there wallet open. The big 3 want their share of multi billion bailout.

[raythompson]

CEO's are working for a dollar and driving hybrids. honestly, does anyone think that will rescue the companies?

No. It is all about impressions. Those private jets they executives used on their first trip to congress was quite cheap relative to the other expenses the companies have. I would also say the security is much easier on a private jet.

Maybe they should have jetpooled.

One could also question the congress critters as to why they find it necessary to fly first class between their home state and DC? What is wrong with coach? In this time of huge deficits members of congress should also be doing what they can to reduce government spending.

[spenchey2]

You can't even bring up the airline comparison. Plane ticket= couple hundred bucks at most. New car= average of 30k. Plane ticket takes you from one place to another and thats it. The car takes you places every day. If something goes wrong with it you have warranty done on it or you have to get it fixed. If something goes wrong with the plane(hopefully on the ground) you don't pay for it.

All of these suppliers for the car companies are heavily reliant on the big three. In many case one of the big three makes up more than half their business. So if one of the big three fails then a group of suppliers will go down. Then the two remaining big three can't get parts then one or both of them may go down.

I'm not saying that the big three have done everything right, because they haven't. If any of the big three are going to file chapter 11 it needs to be prepackaged with some way for their warranties to be covered. In my option the best way for these guys to make it is for them to have the gov back their warranty work and have the union make the changes that were suppose to be made in 2010. If you just let these guys fail flat things get ugly. Have you ever seen a highly successful nation importing all of its cars?

[da.bell]

Have you ever seen a highly successful nation importing all of its cars?

Saudi Arabia and Dubai

[illiniboarder88]

Actually, chapter 11 doesn't mean they go away. It could actually help them to start over.

[talltigeguy]

They have plenty of income it's just their spending is way out of control and hopefully Chapter 11 will allow them to renegotiate some of their contracts and bring some of their spending back in to line. I feel that Chapter 11 is the best solution for them and I own a car that is still under warranty by them.

DING DING!!

All of these suppliers for the car companies are heavily reliant on the big three. In many case one of the big three makes up more than half their business. So if one of the big three fails then a group of suppliers will go down. Then the two remaining big three can't get parts then one or both of them may go down.

I do not buy this argument. Chapter 11 would allow them to reorganize and get out of the ridiculous contracts with the UAW. They currently have 2 workers for every retiree with a big pension and benefits. That is simply impossible to maintain. The parts makers would go for a bumpy ride and then be back as quickly as the car company. They will not go away, just get reorganized with the rest of the auto industry, and come out leaner and meaner.

Ray Thompson makes the most sense to me...read his post again.

Back to boat engines...have any of you noticed what is stamped on the rear of your block? Mine said in nice big letters "HECHO EN MEXICO" on my MP 340HP engine. There will still be plenty of places to get an engine if GM fails.

[chadster2]

years ago didn't the government tell the big three to make a deal with the unions "or else" and to not lock them, the unions, out?


I'm not going to buy a truck anytime soon but "all this" is a factor for the
next one I do get. They used to own the market, in a bad way.

They "The big 3" had to work at messing up their place in the world.
They did.

[chadster2]

I'm going to get a flux capacitor power plant for my boat next year anyway.

[Lucky 275]

GM isn't going to fail. They definately need to get leaner, though.

[gstauffer]

So what would you do if Tige' had to use: lets say the same 5.7 Toyota uses in their Tundras?

[zad0030]

I think ford is definately suffering. Just by checking all three's websites, ford is the only company that does not have and releases of new fuel efficient vehicles. Whereas GM and DC both have plans for Range Extending Electric Vehicles and Electric Vehicles coming in the year 2010.

[Lucky 275]

I'd settle for the Lexus motor that Toyota put in their Epics a few years ago

[dogbert]

I'm pulling for a Bluetec Diesel powerplant

[Timmy!]

Isuzu makes the Duramax so that could always be an option if Isuzu survived GM's demise.

Seriously, how could they go completely under by filing bankruptcy when they have billions upon billions in revenue? I believe that they don't want to throw the unions under the bus since they are their livelihood right now and if they get rid of them, most of those workers will just stand outside and picket and they won't be able to make cars and maybe that's what they are afraid of (and how they could go under I suppose).

[illiniboarder88]

I think the union may have less support than you think. Newer union workers are making a fraction of what the protected old timers and retirees are making.