Recent point on auto bail out

iVillage Member
Registered: 07-25-2008
Recent point on auto bail out
50
Sat, 11-15-2008 - 10:00pm

Heard a reminder on local talk radio, that when Iacocca took a loan from the government in the 80's, he reduced his salary to $1.

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iVillage Member
Registered: 10-09-2008
Sun, 11-16-2008 - 5:00pm
I don't think Chrysler got any money from the government. Didn't they just guarentee the loans?
iVillage Member
Registered: 03-25-2007
Sun, 11-16-2008 - 5:50pm

There were loan guarantees, but Chrysler still laid off lots of workers and restructured its debt obligations, so there were losses - just not losses to the federal government.

Sopal

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iVillage Member
Registered: 04-03-2003
Sun, 11-16-2008 - 6:13pm

Personally I don't want to see them get a bailout, though perhaps not entirely for

iVillage Member
Registered: 11-05-2008
Sun, 11-16-2008 - 6:28pm

The back and forth on this in my mind is not only the auto makers but the collateral damage that will ensue.

iVillage Member
Registered: 04-03-2003
Sun, 11-16-2008 - 7:03pm

You're right, it'll definately affect more than just GM, Ford, etc.

iVillage Member
Registered: 07-03-2008
Sun, 11-16-2008 - 7:12pm
What should happen to the "Golden Parachuttists?" How about what AIG did? I'm even more angry about those bozos.
iVillage Member
Registered: 04-03-2003
Sun, 11-16-2008 - 7:26pm

If they get the bailout money, they should be out on their can and their ridiculous parachute plans tossed.

iVillage Member
Registered: 03-25-2007
Sun, 11-16-2008 - 8:28pm
There should have been no golden parachutes for those who have driven their companies (banks, insurance companies) into the ground.

Sopal

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iVillage Member
Registered: 10-25-2006
Sun, 11-16-2008 - 10:26pm

The possibility of auto suppliers closing shop is very real. Just this weekend DH spoke with his ex-coworkers at an auto supplier in MI. >50% of their revenues are from GM. They'll be asking for price concessions from their customers, and if they cannot get them they'll close shop, THIS YEAR. The only other hope is that someone will buy the company, but who wants to buy ANY auto supplier these days?

The U.S. auto giants did screw up badly and part of me wants to let them go through bankruptcy and reorganization. Or let the foreign auto companies buy up GM, Ford and Chrysler along with all of our auto suppliers. (Would they have any desire to buy the U.S. companies?)

But it will be painful for all of us if production just shuts down, and not only because of unemployment. If that happens, then when we finally get back on our feet and the demand for new autos picks up, there will be none available. The vehicles will be shipped to the U.S. from overseas at high prices, contributing to an inflationary spiral and massive trade deficits.

Somehow we need to keep the U.S. plants operational, and I think Obama's push for a greener auto industry and the necessary improvement in the energy grid is right on. It's too bad he has to wait until January to get things moving.

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iVillage Member
Registered: 10-09-2008
Sun, 11-16-2008 - 11:44pm

Our auto makers pay benefits up the wazu. I believe they even pay the full cost for retirees. It should be no surprise that they can't compete with Japan and Europe. They should skip the bail out and restructure, or else they will have the same problems down the road.


This is a bail out for the unions, not the auto makers.

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