Yikes >> http://www.autoblog.com/2008/08/07/a...-john-mcelroy/

In short, the "Big Three" are running out of money, and running out fast. At its present spending rate, General Motors will burn through almost all the cash it has in the next 6 quarters. Ford can hold out a little bit longer. And Chrysler? Well, who the hell knows what's going on there?

It looks like we're definitely in the 11th hour here, folks.

 

Last night I was watching "Saving GM" on CNN and I think they mentioned that by 2010 they'll won't have to pay money for their retired workers. That might save them some money. I just hope they'll be around by then.

 

I mentioned previously that Ford appeared to be in better financial shape, and I stated this with genuine belief that what we were seeing from each car company indicated exactly that. I also indicated that everything coming from within GM gave the impression thay they were in even deeper **** than many seemed to believe. Now, everything we are seeing supports what I said to the letter. (it isn't nearly as simple as this article indicates, but the jist isn't terribly off) Even more, relatively speaking Ford is much better off than this report indicates since they can still liquidate Volvo and their share of Mazda if need be raising substantial amounts of cash. GM simply has no well left to go to, even selling Saab is probably implausible by this juncture. If Ford's current plan is a total disaster, which seems unlikely, they can potentially make one more go of it.......for GM, they are increasingly appearing as though they need a miracle and I think, as do many, that they are very likely riding out their last chance as we speak..

 

"I mentioned..."

"I stated..."

"I also indicated..."

"....everything we are seeing supports what I said to the letter."

Wow! Do you have any idea how narcissistic you sound?!

The reasons for GM's abrupt difficulties have little to do with your predictions and everything to do with the sudden downturn in the economy; the housing disaster and credit crunch; the sudden increase in the cost of oil, etc. And while Ford may be in better shape, the Grim Reaper is looming over their shoulders, too.

And either way, even if GM becomes utterly insolvent, it ain't goin' anywhere. Have any idea how important the company is to the US economy? And I'm not even talking about all the military contracts the government has with GM (i.e. Hummers).

Can you say bailout? The other option is some sort of automotive merger or "repurposing" of select brands.

 

I think that would depend on who is elected into office this November.

 

If GM fails it would blow unemployment straight out of the water with the ripple effect it would have on the various companies that depnd pn them for survival. I shudder to think what would happen if all three failed (obviosuly to a lesser extent than what GM would do - 10-12% is the figure tossed around for just GM alone).

I'm not much for corprate welfare - intrest free loans or low intrest loans dont really bother me much, but this is a case where I could look the other way. The US auto industry brings more than jobs to the table, there guys are major innovators generating the largest number of patents year in and out.

 

I blame NASCAR.. You know the whole Toyota thing..

 

Here is the biggest problem for Big 3.

 

Frankly, the changes in the economy were included in my reasoning for why GM is in trouble. But the cold hard truth is that GM is going broke because they still can't figure out how to profitably run a car company, and the current situation with fuel prices and lower car sales is just serving to quicken the inevitable at this point.

Ford is indeed in trouble themselves, but it still isn't anything like what you want folks to believe. Bad? Oh yeah. As bad as the situation at GM? Not even close, and the gap widens daily. In fact, the current 'economic crisis' is doing far more damage to GM than it should because they were once again short sighted in their product development and planning long after everybody else had gotten a clue.

Can GM still make it? Possibly. The truth is that nobody knows exactly what is in the coffers but them. But we do know it's getting very close right now, and some of us understood that a long time ago. You keep wanting to make this personal when it is nothing more than an ability to recognize the obvious.

 

I am a firm believer in Unions but at what point do they start killing a company?? Something has to give.. But if the company is going down hill because of policy and bad business practices then what? I still will never ever drive anything from Toyota, Nissan or Honda.. Just look at thisthat Zoran and posted up, sick....

 

Overreaction. If any or all of the "Big Three" (and I say that pretty much tongue in cheek) file Chapter 11, they can still produce vehicles for years--maybe even decades--before they would have to put out the cat, board up the doors, and chain the fences for good.

Borrowing all this money makes lotsa sense when Chapter 11 can always be called upon to protect the borrowers from their creditors. Borrow untold billions, file Chapter 11, and not have to start making repayments until after a "reorganization" that can be dragged out for years--even decades. Fire a big name or two, lay off some hourly workers, maybe close a plant or two, blame the UAW for the never-ending delays, sell off a subsidiary or two, renegotiate the union contracts, and ask for credits and such for all the cars you now produce that yield high mileage (and little else).

It's a racket! And a good one!

Greg "Eights" Ates

 

Thats amazing, the amount of $$$ they make per hour, and per year!!

 

A lot of truth in that.

 

Wages and benefits, cut those in half and you more than likely get the hourly pay.

To be honest, who here would turn down the same thing? I'll wager nearly everybody here would be reaching for the brass ring as well. Detroit played the placating game and the Union leadership thought the sky wasn't the limit. I cant blame the workers themselves.

 

They've also invaded NHRA with a funny car.

 

America's car company toyota! Lol, Nascar & Funny cars, man talk about zero connection with the production stuff. I know the Funny car Mustang isn't much better (nice to have a "Ford" engine and all - in the broadest sence only), but man why isn't toyota running some production based stuff in the NHRA?

 

Because they don't sell a muffler big enough at Checker...

 

that would be cool if GM chrystler and ford teamed up and spanked toyota untill the begged for their mommy

 

lol

 

Don't just blame this situation on the unions. A big part of those figures are health-care costs, which our current system has exacerbated in a major way. I'm a teacher and in our district the cost for health insurance to the district has doubled in the 6 years I've been there. So a big part of the problem is endemic to our current system. Most people in this country feel that if you work for a major company like GM or Ford you should at the minimum get healthcare for your family paid for. The Japanese companies simply don't have to deal with that cost.

Additionally, had Ford and GM gotten their act together and made some more quality products and less crap then they wouldn't be in this mess. The failure to jump onto to hybrid/small car bandwagon has made a big difference. Even just producing a good fuel-efficient crossover/hatchback would have made a big difference for Ford and GM.