Big Three Bailout?
By Barry Ritholtz - November 20th, 2008, 7:15PM
Congress split on whether to bailout U.S. car makers; Big three CEOs visit congress to plea for government help; GM, Ford, Chrysler CEOs say failure could be ‘catastrophe’; CEOs say automakers will accept conditions to taxpayer aid; Automaker aid-bill looms.
Automaker aid bill looking less likely, lawmakers say; Wagoner: People won’t buy cars from bankrupt automaker; CEOs say automakers will accept conditions to taxpayer aids; Analysis by Greg Miles Of Bloomberg News
November 20th, 2008 at 9:42 pm
Let the government backup the warranties of auto manufacturers, gillotine the CEO’s and key exec’s and reorganize with a strategy and more aggressive management, to have less models, non-monster truck products and economic fuel-sensitive cars and people will buy them. Also go into bankruptcy with a pre-packaged approach which include these ideas and which break the legacy union wages and benefits and, as a lot of smart minds have posited, and they can work through this.
November 20th, 2008 at 11:51 pm
The management flew into DC on their private jets and said “we dont need management changes, give us the money”. The union flew in on chartered jet and said “we dont need worker changes, give us the money”. With no changes, they will need more money in 3 months. Chapter 11 is the only way to rid us of these parasites.
November 21st, 2008 at 12:09 am
I wouldn’t buy a car from a bankrupt car maker. But I don’t think this is a decision that will have to get made. The politicians are not going to cut-off the hand that feeds them so well. Detroit and the UAW have been good to politicians. Detroit get the money they are asking for, if not now, then in January. Washington will just shake the feet of the taxpayer a little harder.
But will Detroit turn into another AIG, continuing asking for ever more $$? Probably, but only time will tell.