GM will not survive

[Linda]

I agree that we should not be bailing them out unless they are willing to restructure or eliminate the power of the unions. The patient was sick long before the condition became critical.

But the housing crisis is just killing everything. Nobody is going to buy a car or truck right now unless they have to. What should we do? Should we allow them to fail? If GM and Chrysler fail, then what happens? Serious question. What dominoes start to fall? Detroit already is arguably in more serious condition than New Orleans.

I read the most remarkable story today. One in three of all mortgage holders in my metro area owe more on their home than it is worth. One in three! Guess what dominoes fall as a result? People stop spending and more lose their jobs, more foreclose, values fall further, more people are underwater. And the state budget falls to almost nothing -- thanks to fewer sales tax revenues, few doc stamps, increased unemployment. I know this is not "related" to the GM woes, but it is, peripherally. It is housing. And the only way to avoid utter disaster is to create or retain jobs.

Restructure GM, yes, but allow them to fail? I can't be so cavalier.

Yes, I believe that they should be allowed to fail. I don't buy into the premise that anything is too big to fail. They were failing in September and in spite of throwing good money after bad they are still failing. There are better run and better managed companies that wil absorb GM's assests and make themselves bigger and stronger. When this process begins then I think the economy will start to recover.

 

[Lynnie]

Yes, I believe that they should be allowed to fail. I don't buy into the premise that anything is too big to fail. They were failing in September and in spite of throwing good money after bad they are still failing. There are better run and better managed companies that wil absorb GM's assests and make themselves bigger and stronger. When this process begins then I think the economy will start to recover.

I agree!! Someone stronger will absorb some of the assets, making them stronger. Hopefully, it will be an Asian Auto maker who isn't semi-controlled by the unions. The first viable business sectors to absorb IMO, would be parts manufacturing and service. I

 

[traderx]

I'd feel much better about the situation if I felt that American auto manufacturers could actually build a product that someone would buy. At least Eastern Airlines tried to get you to the destination that was printed on the ticket.

Actually, Detroit makes the best selling vehicle in America: the pickup truck. And despite the move by Boomers and Yups to buy fancy pickups, the majority are still old-fashioned work trucks. But somewhere between pickups and Pintos, there is a void.

I will never forget my last Eastern flight, ATL to New Orleans. We hit the runway so hard in NO that most of the overhead oxygen masks were jarred loose. On the return flight, the flight attendant announced on the PA: Ladies and Gentlemen, boys and girls of all ages, our magnificent bright-eyed fearless captain has managed to do it again: he has found the Atlanta airport and we will be on the ground shortly.

I have flown well over a million miles - mostly on Delta and am not a nervous flyer but I did not appreciate the flight attendant's "humorous" diatribe. It seemed like they knew the end was near and were right. Surely when Gettelfinger thinks hard about the future of the UAW and Ford and GM, he must know that changes are necessary.

 

[Lynnie]

Yeah - there are more Chevrolet trucks on the road than any other mfg - SUV, heavy and light duty pick ups. My uncle still has his green and white '71 pick 'em up truck. Loves it.
I remember the Eastern strike and closing! A colleagues wife worked in Operations at Delta and she said, "I hope it never happens to us, but anything could occur."

Trust those pensions any longer?

 

[dgsevier]

Actually, Detroit makes the best selling vehicle in America: the pickup truck. And despite the move by Boomers and Yups to buy fancy pickups, the majority are still old-fashioned work trucks. But somewhere between pickups and Pintos, there is a void.

Sorry, hard to hear you over this rattling dashboard on the company-owned Impala

 

[traderx]

Sorry, hard to hear you over this rattling dashboard on the company-owned Impala

What?

 

[dgsevier]

What?

An Impala is a car model made by Chevrolet. Chevrolet is an American car company. This model of vehicle is popular with companies and governments that buy large fleets. It is poorly constructed.
[sarcasm/off]

 

[scooterbug44]

Bummer

Papa Scooterbug will be very sad if GM goes under - he absolutely loves their SUVs and already has more than 50K miles on his 2006 GM.

 

[30ashopper]

An Impala is a car model made by Chevrolet. Chevrolet is an American car company. This model of vehicle is popular with companies and governments that buy large fleets. It is poorly constructed.
[sarcasm/off]

I think traderx drives an Impala too, you missed the joke.

 

[traderx]

I think traderx drives an Impala too, you missed the joke.

What?