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Old 12-19-2008, 01:08 PM   #21
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Even Toyota is suffering. Too bad they make cars nobody wants...

Toyota Could Post First Operating Loss Since Founding - Automotive * US * News * Story - CNBC.com
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Old 12-20-2008, 12:47 PM   #22
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Even Toyota is suffering. Too bad they make cars nobody wants...

Toyota Could Post First Operating Loss Since Founding - Automotive * US * News * Story - CNBC.com
Oh-oh, I guess they'll be coming to DC to plead their case next.......
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Old 12-20-2008, 01:10 PM   #23
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The steel industry was comparable in size. However, there are two aspects that could well make this "different." 1) Steel is a second tier supplier, IOW people do not buy steel directly, it's in products they purchase so the connection isn't readily apparent, which goes hand in hand with 2) there's a fair question as to whether people will not buy cars from bankrupt manufacturers for fear of long term warranty, service and resale concerns. Unlike most products, people have to be confident they are buying from a viable company for a big ticket long term item like a car (unlike an airline ticket). I know I would not buy a car from any carmaker in bankruptcy when there are viable alternatives - why take the chance?

Believe me, I am strongly opposed to an unstructured bailout. And I am convinced the 'as goes GM, so goes the Country' and '1 in 6 people are directly/indirectly employed by carmakers' are unfounded (or at least badly out of date) assumptions - that the UAW and others want you to accept unchallenged. But I wonder if a highly structured bailout package (sweeping across the board, firm conditions and deadlines) much like what Corker was proposing - would be the best alternative. We'll see what the White House does...
I agree except for your decision for a bailout. There was much stronger reason to save the steel industry than there is to save the car industry. It's just a consumer product, if they can't sell their product they are making something no one wants or charging too much and they need to be flushed out of the market. The steel industry effected every other industry 6/6 people worked directly or indirectly for the steel industry and the country didn't collapse and get taken over by russia when it collapsed.

If the government needs to intervene at all in the "Big 3" it should be as trust busting and turn it into the "detroit 300".
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Old 12-20-2008, 01:23 PM   #24
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. . . 2) there's a fair question as to whether people will not buy cars from bankrupt manufacturers for fear of long term warranty, service and resale concerns. Unlike most products, people have to be confident they are buying from a viable company for a big ticket long term item like a car (unlike an airline ticket).
Any consumers concerned about GM's long-term prospects are already spooked. I'd be more confident that they'll be around 10 years from now if they just declared bankruptcy and got the restructuring over with. The longer they screw around with begging for handouts from the government, the deeper their financial hole wil get and the longer this cloud hangs over them (depressing sales). Get it over with.

A solid, large third company supplying a gaurantee of warantee repairs might induce skitish buyers to consider GM. This migt be necessary whether GM actually declares bankruptcy or remains on life support without prospect for recovery (given her current cost structure).
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Old 12-20-2008, 01:43 PM   #25
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A solid, large third company supplying a gaurantee of warantee repairs might induce skitish buyers to consider GM. This migt be necessary whether GM actually declares bankruptcy or remains on life support without prospect for recovery (given her current cost structure).
This to me is what part of a "government-engineered bankruptcy" could have done: provided some assurances that the warranties would continue to be honored through the bankruptcy.
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Old 12-22-2008, 10:03 AM   #26
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How bout a Warranty Czar in the White House? This person could also take care of mail-in rebates, rental deposits, double coupon days, green stamps, and frequent flyer miles.

As long as we are going to have a tsar, have them do something useful.
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Old 12-22-2008, 10:14 AM   #27
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How bout a Warranty Czar in the White House? This person could also take care of mail-in rebates, rental deposits, double coupon days, green stamps, and frequent flyer miles.

As long as we are going to have a tsar, have them do something useful.
Be careful WHAT you wish for........ Trust me, for all the folks who thought Bush limited their personal freedoms, you "ain't seen nothing yet".......
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