DodgeTalk Forum banner

Status
Not open for further replies.
1 - 7 of 7 Posts

·
Registered
Joined
·
430 Posts
Discussion Starter #1
Feb. 9 (Bloomberg) -- General Motors Corp. and Chrysler LLC may have to be forced into bankruptcy by the U.S. government to assure repayment of $17.4 billion in federal bailout loans, a course of action the automakers claim would destroy them.

U.S. taxpayers currently take a backseat to prior creditors, including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc., according to loan agreements posted on the U.S. Treasury’s Web site. The government has hired a law firm to help establish its place at the front of the line for repayment, two people involved in the work said last week.

If federal officials fail to get a consensual agreement to change their place in line for repayment, they have the option to force the companies into bankruptcy as a condition of more bailout aid. The government would finance the bankruptcy with a so-called “debtor in possession” or DIP loan, a lender status that gives the U.S. priority over other creditors, said Don Workman, a partner at Baker & Hostetler LLP.
Source Bloomberg
Source URL:
http://www.bloomberg.com/apps/news?pid=20601087&sid=atjQ8fjgT.kY&refer=home


I think this is what they should have done all along. Come back without the UAW (Unemployed Auto Worker) Union and have a leaner, meaner, cleaner company without all the massive overhead that is dragging them down.
 

·
NJ by birth not by choice
Joined
·
124 Posts
a buddy of mine works for G.M. on the assembly line and he tells me horror stories about the lazy, inner city employees and how the union protects them. one guy was asked why he only shows up for work 3 days a week and his response was "because i can't live on just 2 days a week." needless to say, he still works there. it is stuff like this that is why we can't compete with the japanese. i really hope they can get it together because if this company goes under, there will be no one to honor the warranties. also, imagine the resale values on these things if they go bust -ZERO. like you guys said -trim the fat and have a leaner, meaner production.

sorry -double post
 

·
rowdymopar
Joined
·
481 Posts
I really doubt most UAW employees only decide to show up to work 3 days a week . again any Oranization the size of the UAW has it's problems , but dont lump all UAW employees into this same catagory . I somewhat agree that there are some members of all Labor Unions who take full advantage of the Contracts at any chance they get . But the Same can be said of Some Non Union Employees in there respected fields as well . Again The Unions Are not the problem here the problem is mismanagement starting at the TOP !!!!
 

·
Clinically Certified
Joined
·
735 Posts
Rowdy, I disagree with the problem being excutive mismanagement or the UAW. When the Detroit 3 built small economical cars and trucks...nobody would buy them...they still bought the cheap imports and accepted the fact that the quality was terrible in those imports. You can't build something nobody is gonna buy...that would be mismanagement! The current problem was sparked by an industry that the auto makers had absolutely no control over...bad home mortgage loans, bad wall street decisions, bad banking practices. The auto industry is just only one segment that is being hurt dramatically by the current economy. It is true that in order to save these companies it is gonna be a shared compromise between the govt and the auto industry...each will do their share to make it work. The only thing that the govt will do is to make sure that the industry manages the loan properly and that they take the appropriate steps to protect that investment...something our banking system hasn't done so far. I don't care if the auto industry dumps the union...makes only economical cars or any type vehicle that the consumer would love to get their hands on...if the consumer doesn't have the money...can't get the loans to buy...how is the auto industry going to survive?

I am afraid that until the consumer feels confident that they won't lose their jobs or homes and their retirement is secure, investing in a new car will not come about. People will buy used vehicles which will make the used car market boom, but won't do a thing for the auto manufacturers. It is going to be a very tough road for auto industry and I am afraid some of them won't survive...and it wasn't the management fault or the unions.
 

·
rowdymopar
Joined
·
481 Posts
I agree with most of what your saying ( OUTaCntrl HEMI ) The US has lost millions of good jobs in the last 10-12 years, I agree with no jobs it's hard for people to buy anything . " If we continue to buy imports where will our children work " , The UAW have said for years someday the Truck , SUV banwagon would run out . & the company's should start building more Economy based cars . But the Executives only seen the huge profits rolling in from the SUV sales & no vision twards the future . UNIONS have become a bad word in this Country. The only FAT pointed out is that of the Blue Collar Union Employees , what about the Executive & The layers & layers of under Executives that make Large salaries & procduce Nothing !! the statement that I know a guy who works for GM & blah blah blah well I know someone who works for Microsoft & screws the clock every second he can Does that mean they all do ????
 

·
Clinically Certified
Joined
·
735 Posts
Rowdy...I don't care what the salaries are with the execs....they can make whatever they make as long as they earn it just like the rest of us. Top execs earn what they earn and if they lead the company in the wrong direction...then fire them. It is that simple. But, think about what products that the execs agreed to produce and sell because of the demand of the consumer (not some govt thinktank)....think of the new Ram, the Chally and the upcoming hybrids and electrics...they are doing their job in my opinion. And yes...every business has their bad eggs; union or otherwise and for some reason seem to keep their jobs...but your are right...it shouldn't be a reflection that all the workers are guilty of doing the same thing. The mindset of some people is rather small though unfortunately.

Personally, I have a problem with those multi-millionaire sports players doing drugs...making that kind of money...geesh
 
1 - 7 of 7 Posts
Status
Not open for further replies.
Top