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Thread: GM needs up to $30-billion more, Chrysler seeking $2-billion more

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    Thumbs down GM needs up to $30-billion more, Chrysler seeking $2-billion more

    DETROIT — — General Motors Corp. said on Tuesday it could need a total of up to $30-billion (U.S.) in U.S. government aid — more than doubling its original aid — and would run out of cash as soon as March without new federal funding.

    The request for additional aid from the top U.S. auto maker came in a restructuring plan GM submitted to U.S. officials on Tuesday.

    The GM restructuring plan of more than 100 pages was posted on the U.S. Treasury Web site.

    The request came on the same afternoon that No. 3 U.S. auto maker Chrysler LLC requested an additional $5-billion from the current $4-billion in U.S. government aid, saying it expected the brutal downturn in the U.S. market to run another three years.

    GM also said it had not reached deals with bondholders and its major union to reduce some $47-billion in debt but would work to reach those agreements by the end of March.

    In response to signs of a prolonged slump in demand for new cars and trucks, the auto maker also said it would step up cost-cutting, reducing its global work force by 47,000 jobs this year and cutting five additional U.S. plants by 2012.

    In addition, GM said it would cut its U.S. work force by another 20,000 jobs by 2012 with most of those reductions coming earlier.

    GM has been kept afloat since the start of the year with $13.4-billion in loans from the U.S. Treasury. Its expanded aid request for up to $30-billion includes a $7.5-billion credit line in the event that the autos market remains depressed.

    Critics of the bailout of GM and its smaller rival Chrysler have urged the government to consider financing a court-supervised restructuring for the two ailing auto makers in bankruptcy.

    GM said its own analysis of the costs and risks of a bankruptcy filing would require more than $100-billion in financing that could have to be provided by the U.S. government.

    GM requested an unprecedented U.S. government bailout in December and had pegged its funding need then at up to $18-billion.

    But the auto maker has faced a deep slide in sales outside its long-slumping home market in the weeks since and GM said its revised restructuring plan would take aim at loss-making overseas units as well.

    GM also said it would plan to phase out its Saturn brand by the end of 2011 and make a decision on whether to sell or just wind down its Hummer SUV brand by the end of the current quarter.

    http://www.globeinvestor.com/servlet...t0217/GIStory/

    ---------------------

    Chrysler LLC needs another $2-billion (U.S.) on top of $4-billion it has already received and $3-billion it is awaiting from the U.S. government, the auto maker said Tuesday.

    The additional money is needed, Chrysler said, because of what it called an unprecedented sales decline even since its first request made to the U.S. government before Christmas.

    “The continued lack of available credit affects consumers and dealers, leading to reduced wholesale orders for Chrysler,” the auto maker said.

    It is now projecting that over-all U.S. industry sales will crash to a 40-year low of 10.1 million vehicles this year and average 10.8 million between now and 2012, below the numbers in the previous plan.

    As part of its plan, Chrysler said it will eliminate three vehicle lines, a shift at an unidentified plant and slash another 3,000 jobs.

    It added that it has a deal with the United Auto Workers to lower labour costs, but provided no specific elements of that part of the plan.

    http://www.globeinvestor.com/servlet...r0217/GIStory/

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    A few more months and they will be asking for even more.

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    It's BS.

    Let's fund the bankruptcy instead. The don't need a reboot, but a reinstall.

    GM is just using Obama's promise to unions to blackmail the government.

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    Originally posted by 94boosted
    A few more months and they will be asking for even more.
    You can bet on it.

    Seriously, they think sales are bad now, just give it a few more months when the unemployment rate continues to sky rocket, economy deteriorates, banks are pulled from life support and nationalized, consumer confidence hits another low and the Americans are only thinking about saving money and getting food from stamps, no one will be buying anything. You have an economy that's driven by spending coming to a complete halt.

    Originally posted by Xtrema
    It's BS.

    Let's fund the bankruptcy instead. The don't need a reboot, but a reinstall.

    GM is just using Obama's promise to unions to blackmail the government.

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    .
    Last edited by kaput; 04-03-2019 at 07:46 PM.

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    Originally posted by kaput
    I just wish it was Chrysler in as much trouble as GM claims to be since they have the least potential to succeed IMO.
    Ummm... wat?

    So the business doing the best, has the least potential to do well?

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    I think it is funney that the government handed over 150 Billion to AIG with no questions asks but makes a huge fucking deal about bailing out GM.

    What the fuck>
    ??

    Gm employs over 3millon people.

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    Originally posted by DRKM
    I think it is funney that the government handed over 150 Billion to AIG with no questions asks but makes a huge fucking deal about bailing out GM.

    What the fuck>
    ??

    Gm employs over 3millon people.
    From another perspective. If banks fails, everyone in the world fails. If GM fails, we just drive Honda's.

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    Originally posted by Xtrema


    From another perspective. If banks fails, everyone in the world fails. If GM fails, we just drive Honda's.
    If GM fails i for one will NEVER EVER drive a Honda.

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    Last edited by 01RedDX; 10-17-2020 at 04:00 PM.

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    Last edited by kaput; 04-03-2019 at 07:46 PM.

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    Wow . Will one of them please go bankrupt!!

    Hell why dont they give 30 billion to the people so we can all buy cars , and we will decide which company goes under and what one doesnt.
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    keeping a dinosaur afloat by giving it water wings? throwing money at them does nothing. They should just go into Chapter 11 already and restructure. I dont feel sorry for any of these companies sure they have a few decent products but if I ran a business and made products nobody wanted and my business ran into the ground could I expect a Gov't pay off? what a joke business is business sure they employ tons of people BUT that doesnt mean they can just be bailed out by the taxpayers everytime they run their company into the ground. F em.
    A Ferrari is a high maintenance chick, you spend money regardless of what you do with her. You can baby the C63, or slap on all seasons, and you won't be spending anything but yearly maintenance. Of course that's like dating a stripper and refusing to fuck her, which would make you gay.

    Originally posted by Rage2

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    Originally posted by Xtrema


    From another perspective. If banks fails, everyone in the world fails. If GM fails, we just drive Honda's.
    No...

    If GM Fails, 266,000 people who work for GM lose their jobs, and then all the people who work for the company making seats lose their jobs, and then all the people who work for the company making airbags lose their job.

    So on and so on, you see how it works? GM has so much shit attached to it I dont see a way that they can let them go under.

    The reason they dont want to go into bankruptcy is because who wants to buy a car from a company that has gone into bankruptcy? No one.
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    They're heading towards it, and people already see this.

    Hell, there is ads in calgary already for the crowfoot saturn saab closing down....

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    Originally posted by dino_martini


    No...

    If GM Fails, 266,000 people who work for GM lose their jobs, and then all the people who work for the company making seats lose their jobs, and then all the people who work for the company making airbags lose their job.

    So on and so on, you see how it works? GM has so much shit attached to it I dont see a way that they can let them go under.

    The reason they dont want to go into bankruptcy is because who wants to buy a car from a company that has gone into bankruptcy? No one.
    It's true. If GM goes bankrupt some of Ontario and the rustbelt States would be in a permanent recession. Equivalent to Alberta all of a sudden having no oil or gas. I'm not a fan of Easterners because they are pretty slack as a whole (which incidently is a major reason that GM is in trouble in the first place) but nobody wants all those people out of work.

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    GM said its own analysis of the costs and risks of a bankruptcy filing would require more than $100-billion in financing that could have to be provided by the U.S. government.
    That sounds like blackmail to me. "Give us the money or it's gonna costa ya!"

    Fuck bankruptcy protection, there should be full on asset seizure, starting with executives bank accounts, homes, cars, and children.
    If you mismanage a company and it goes under, that's your own fault, not the governments for not giving you enough free money.
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    Originally posted by dino_martini


    No...

    If GM Fails, 266,000 people who work for GM lose their jobs, and then all the people who work for the company making seats lose their jobs, and then all the people who work for the company making airbags lose their job.

    So on and so on, you see how it works? GM has so much shit attached to it I dont see a way that they can let them go under.

    The reason they dont want to go into bankruptcy is because who wants to buy a car from a company that has gone into bankruptcy? No one.
    If GM fails, 5M people will be out of work. Now GM still have about ~20% market share and it must be served by someone in the industry. So out of 5M, probably 500K-1M will get back to work for someone else within the industry.

    If banks fail, no businesses will survive. Everyone but career bushman will be out of work. We won't know what to pay people with and get sent back to stone age commodity trading.

    Now I hate bankers as much as I hate government and politicians. Both are money wasters. But both are necessary evil for commerce and a stable society.

    Bankruptcy is good. Nissan gone bankrupt once. Came out much stronger once they have new management and ditch to old way of Japanese thinking.

    Same must be done with domestic auto industry.
    Last edited by Xtrema; 02-18-2009 at 12:18 PM.

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    Originally posted by Xtrema


    From another perspective. If banks fails, everyone in the world fails. If GM fails, we just drive Honda's.
    Totally. That video about the electronic run on was fucking scary. With that said, banks are already failing. Just wait until they pull the plug on one of the big ones aka Citi-group and Bank of America

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    Originally posted by Xtrema
    Bankruptcy is good. Nissan gone bankrupt once. Came out much stronger once they have new management and ditch to old way of Japanese thinking.
    Weren't they very close to bankrupcy in the early 90's but never actually went bankrupt?

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