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post #1 of 9 (permalink) Old 10-31-2008, 10:40 PM Thread Starter

 
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Post GM- Chrysler deal hits a wall

General Motors has failed to motivate the government in incentivizing it’s takeover of Chrysler LLC owned by Cerberus Capital. The U.S. Treasury is not interested in funding the deal, which GM needs badly in order to survive and come up with the much needed funds to complete the takeover.

According to the White House, automakers should tap into the $25 billion allocated to the re-tooling of production lines, which has been available to them for quite some time. The $25 billion is to be used exclusively in order to make automotive production more fuel efficient. The U.S. Treasury does not want to begin a trend of bailing out businesses as it has been receiving bad press over it’s bailout of the financial industry.

General Motors in recent months has been losing $1 billion a month amidst a decline of sales. Future developments have been put on hold including the Suburban/Tahoe, Corvette, Malibu and Chevrolet Cruze models.

GMAC, the financial arm of General Motors is in the process of trying to change it’s commercial classification to become a bank in order to take advantage of the $250 billion bailout package, which has been allocated to the banking industry. Seems that is the only change GM has of taking over Chrysler in its entirety at this time and saving itself.

According to previous discussions even if GM does take over Chrysler, all but 7 models of Chrysler will be cancelled and about 50% of it’s current production plants will be shut down. Maybe it is best for Chrysler employees and the economy if this deal does not take place after all.



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post #2 of 9 (permalink) Old 10-31-2008, 11:32 PM
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I hope not. Sounds like some slightly good news.

It would be a travesty if the Dodge brand was killed.

They need to stop wasting time and money looking into this merger and use those resources to figure out a way to restructure the company. The best bet for both here I think would be to tap into the 25 billion and trim their staff and product lines to a point they can afford to stay above water and then come back from there. They have alot of work to do. They need to model themselves after Honda or Toyota. Hopefully no one has to file for bankruptcy protection.


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post #3 of 9 (permalink) Old 10-31-2008, 11:38 PM
 
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That will never happen they would have to fire everyone that works for them Toyota and Nissan are NON Union. The only way these companies are going to survive is to get rid of the union and close 50% of their plants cut the Car lines in roughly half.
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post #4 of 9 (permalink) Old 10-31-2008, 11:46 PM
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The union is going to have to realize the emergency they have on their hands and be willing to deal. Its the only way it will work. If the union doesnt want to deal, then even more of their members will be out of a job when bankruptcy is filed, and there is no money to pay salaries. The effect on the auto industry will be even more devastating.
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post #5 of 9 (permalink) Old 11-01-2008, 11:06 AM
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That will never happen they would have to fire everyone that works for them Toyota and Nissan are NON Union. The only way these companies are going to survive is to get rid of the union and close 50% of their plants cut the Car lines in roughly half.
Ah Unions did not make the Auto makers. To use shitty plastics, chrome that peels, God awfull cheap leather seats. Metals that rusted out in 6 months, Lean burn crap boxs, Motors that had to be pulled to change spark plugs, And butt ugly looking cars. Ect.. Ect.... Or like in this months Car and Driver Page 50. The ZR1 is a spectacular car. Yes it has a interior that wouldn't pass muster in a $18,000 Hyundai let alone a $105,000 dollar sports car The interior is third would standard unless you order the $8,000 option. Gee Unions are to blame for this Third World interior. I Think Not... Do the Unions need to do more to help the auto makers Yes they do. Like if the plant is down for retooling. For 3 weeks. Then you do not get paid 95% of your pay, to sit at home on your ass Watching TV. No work no pay period. Then again the US Gov needs to do much more to help US Companies. China and Japan playing with the yen, Taxs like Japan buts on all non Japanese cars of 100%. Lets see how many $45,000 Camery 4 bangers, $37,160 Honda Fits would sell in this country. Not very many.

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post #6 of 9 (permalink) Old 11-01-2008, 12:13 PM
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OK don't everybody jump on me for this I know it wont happen, but in a prefect world. The union workers figure out that their future is a stake. They get together with some investor and the workers buy the company. Kinda like the Eastern Airline employees tried (course Frank Lorenzo shot that down, nice what you can do when you own a judge).
Then take the company forward. The guys on the line know how to improve the product, and it they had a stake in the outcome, we would see improvements across the line.
Look what happened to quality at Harley Davidson, when the Davidson family came back into the picture. There where little changes, like a guy on the assembly line had an idea for improving a wire connection, and nobody had asked him.
Like I say, nice idea, but it's probably not going to happen. Thinking I'd better buy my 09 Challenger soon if I want one.
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post #7 of 9 (permalink) Old 11-01-2008, 01:48 PM
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Unions were useful 50 years ago. Now they are useless and nothing but a burden on any industry they are involved in. They promote laziness in the employee and the rules that they expect an employer to follow are generally unreasonable.

Unions are obsolete, its time they went away.
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post #8 of 9 (permalink) Old 11-01-2008, 03:47 PM
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Unions were useful 50 years ago. Now they are useless and nothing but a burden on any industry they are involved in. They promote laziness in the employee and the rules that they expect an employer to follow are generally unreasonable.

Unions are obsolete, its time they went away.
I 100% agree....
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post #9 of 9 (permalink) Old 11-01-2008, 11:13 PM
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I 100% agree....
Me Too!
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