what happens if we dont bail out auto makers

[Steve_A]

Hi joe2288,

The economic plight of the three automakers has been set. Economically they will go under, with or without bailout. it's just a case of sooner rather than later. Firstly they would enter in Chapter 11 and try and sort themselves out. But they will fail in the end. The credit isn't being offered to the consumer to buy the cars and also the confidence has been kicked out of the market.

Politically there are basically two options. They will be nationalized and the government will foot the complete bill, or as it was suggested on Fox News this morning, that the head of the union will be given a seat on the board of directors in exchange for the union to pull some strings and sacrifice some of the workforce and reduce pensions, wages and healthcare (this option stinks to high heaven).

The problem as I understood it is that because of the union wanting the most for its' members, the automakers pay pensions. The problem is that there are four pensioners for every worker now at GM. So GMs' overheads are enormous in relation to, say, Toyota which is a young company and hasn't had anybody retire yet. although this isn't the complete reason for the collapse, of course it could be considered one of the contributions for it.

But I feel that in the middle to long term, great changes will occur in the auto industry market, many will lose their jobs, but there will be opportunities in other areas, in smaller industries related to engineering and such like.

Best regards,

Steve

Originally Posted by joe2288

ive been seeing all this stuff on the news about people not wanting to

bail out the 3 major auto companies im curious if any body has a good idea

of what will happen if we dont bail them out.

[Squeptikal]

Originally Posted by Steve_A

Hi joe2288,

The economic plight of the three automakers has been set. Economically they will go under, with or without bailout. it's just a case of sooner rather than later.

But I feel that in the middle to long term, great changes will occur in the auto industry market, many will lose their jobs, but there will be opportunities in other areas, in smaller industries related to engineering and such like.

I appreciate your post, Steve. You have a strong grasp of the facts and the idea that the automakers are going under is seemingly obvious.

I disagree with the idea of them going under.

1. The American automobile industry is a symbol of America's strength and a foothold for the labor unions. The unions aren't going anywhere, and consequently, the auto industry isn't going to fail. The unions represent a strong control system of a large voting institution and the total loss of the pensioners' funds would be catastrophic to this control system.

2. Since the Fed has found it useful to bail out billionaire bankers to maintain control over the Fed, they are now expected to to the same for labor street by everyone. This expectation is part of the "create your own reality" destiny we all serve. The pensioners won't be ripped off while there is a standing American labor army. Don't forget that these are huge corporations owned by those in power for some time to come.

3. Many police & other government agencies are prohibited from purchasing vehicles made substantially from parts outside the Americas. The American SUV market, while sagging, still represents a level of achievement for many college kids entering the job market. Sure, they buy sporty imports, but don't forget that even they are generally made here in the USA. It is far more cost effective to used dollars to build cars rather than ship them from overseas. Try shipping a car here from anywhere outside the continent. $2,800.00 per car last time I heard.

Regards, Squep.

[BROOK]

I agree with realview, it is about the economic condition we need to worry about. I work for one of the big three and I think we need to remember the consumer has some blame here. please read this I received the other day and ask your self who is buying these cars, and before you judge.. get the facts straight.


read this letter to the editor from Elikins

http://messages.finance.yahoo.com/St...=19&so=R&frt=2


are we going under...I'm getting prepaired

[Antaletriangle]

If yer don't bail out an "Auto maker" yer don't bail out yerself...true
Me,i come from a place filled with coal mines,pot banks,steel works and ill educated d*ck faces,male and female-raw ain't it!
Yet true.
Unemployment is ridiculously,ridiculous;"we are USED to it"!??
No sentiments here,STOKE-on-pokey holed trent.
I have suppos-ed friends whom i've known for 25 years who've sold themselves out on their souls during the last two to three weeks!!

I'm very disturbed!!!!
As these people possess greater than average intelligence,(Economics is the degree,by all accounts;(puns fully intended) and one can wear a suit and 'fit thus into the society' crew: They're 'accomplished' regarding the real deal.
Now,this could either sound like naked lunch writer or me-forget it as they say in france!!lool,was Karl marlden a Frenchman??
Two work for Stoke-on-trent council and have sold the f**k out for local people,whilst keeping their arses ""CLEAN""????I attended a funeral of one fellow's father recently-his dad was and is a good chap,an almost indecision from the roll call-he wouldn't understand his son's ways now.
I'll say no more;anyone who feels the need to read knows.

[BROOK]

here is the complete letter from the Elkins dealer

http://www.pistonheads.com/Gassing/t...20in%20America


Note that American companies including Harley Davidson gave 40 billion plus emergency vehicles to 9/11 relief and the Asian and European manufacturers gave NOTHING.

[BROOK]

oops typo that was 40 million in relief money