The Big Three (GM, Ford and Chrysler)

[lwilson100]

Why do we feel the need to bail out companies who did themselves wrong?

 

 

 

The car companies make cars with poor gas mileage. People no longer want to buy them. It's either they make a more fuel efficient car or they go under. Why should tax payer dollars go into keeping companies afloat who continue to put out the same poor product?

 

 

 

I'm sorry that tons of jobs are at stake. It's tough luck. It's life. I can't say anymore than that. It's not fair, and it's not right, but it is what it is.

 

 

 

your completely right since none of the bid three ever made a car that could get over 20mpg since in America we only drive big SUV's and hummers.

 

 

 

one of the big three's biggest problems isn't their vehicle sales, all auto manufacturers are having problems like this, its the fact that they pay there employees nearly 2 times as much as lets say Toyota.i believe the average wage for a factory worker at gm is around $70 an hour while at most other auto companies its only $35

[3rkid]

Why do we feel the need to bail out companies who did themselves wrong?

 

 

 

The car companies make cars with poor gas mileage. People no longer want to buy them. It's either they make a more fuel efficient car or they go under. Why should tax payer dollars go into keeping companies afloat who continue to put out the same poor product?

 

 

 

I'm sorry that tons of jobs are at stake. It's tough luck. It's life. I can't say anymore than that. It's not fair, and it's not right, but it is what it is.

 

 

 

your completely right since none of the bid three ever made a car that could get over 20mpg since in America we only drive big SUV's and hummers.

 

 

 

one of the big three's biggest problems isn't their vehicle sales, all auto manufacturers are having problems like this, its the fact that they pay there employees nearly 2 times as much as lets say Toyota.i believe the average wage for a factory worker at gm is around $70 an hour while at most other auto companies its only $35

 

 

 

GM makes plenty of cars that have 20+ MPG...

 

 

 

But I believe that the Big 3 should go down the god damn corporate tubes.

[Lordjake]

Ford has a market cap of around $7b and GM around $2.7b. Chrsyler is privately held, but it's estimated worth is $2b... although its parent company recently announced that its stake in Chrysler had a book value of zero dollars after write offs and charges.

 

 

 

Instead of bailing these companies out, the US government should just buy a controlling share of their stock, then use the companies' assets to build automobiles and other transportation that people actually want to use. Buying the companies would've cost less than the bailout, and future bailouts, given to them. And once the government has control of the companies, instead of complaining about their poor corporate leadership, they can fire them and replace them with new management.

 

 

 

From what I understand, Obama is hoping to start some massive new infrastructure construction, and these auto companies have both the materials and labor required to complete such a task. Not only would the millions of jobs be preserved, the country would finally receive an overhauled and modernized transportation system worthy of the 21st century.

 

 

 

A simple bailout isn't going to save the big 3. The economy is failing, and most people aren't willing to pay $15k-$25k for a new vehicle, especially one from a company that may go bankrupt in the next month.

 

Ford and GM have a combined $414b in liabilities and, I'm sorry but, a little bailout isn't going to fix that. A drastic change has to happen, and a government-takeover would certainly be one.

[3rkid]

Ford has a market cap of around $7b and GM around $2.7b. Chrsyler is privately held, but it's estimated worth is $2b... although its parent company recently announced that its stake in Chrysler had a book value of zero dollars after write offs and charges.

 

 

 

Instead of bailing these companies out, the US government should just buy a controlling share of their stock, then use the companies' assets to build automobiles and other transportation that people actually want to use. Buying the companies would've cost less than the bailout, and future bailouts, given to them. And once the government has control of the companies, instead of complaining about their poor corporate leadership, they can fire them and replace them with new management.

 

 

 

From what I understand, Obama is hoping to start some massive new infrastructure construction, and these auto companies have both the materials and labor required to complete such a task. Not only would the millions of jobs be preserved, the country would finally receive an overhauled and modernized transportation system worthy of the 21st century.

 

 

 

A simple bailout isn't going to save the big 3. The economy is failing, and most people aren't willing to pay $15k-$25k for a new vehicle, especially one from a company that may go bankrupt in the next month.

 

Ford and GM have a combined $414b in liabilities and, I'm sorry but, a little bailout isn't going to fix that. A drastic change has to happen, and a government-takeover would certainly be one.

 

 

 

 

 

So to sum it up, you want to initialize communism into the playing field?

[Lordjake]

Ford has a market cap of around $7b and GM around $2.7b. Chrsyler is privately held, but it's estimated worth is $2b... although its parent company recently announced that its stake in Chrysler had a book value of zero dollars after write offs and charges.

 

 

 

Instead of bailing these companies out, the US government should just buy a controlling share of their stock, then use the companies' assets to build automobiles and other transportation that people actually want to use. Buying the companies would've cost less than the bailout, and future bailouts, given to them. And once the government has control of the companies, instead of complaining about their poor corporate leadership, they can fire them and replace them with new management.

 

 

 

From what I understand, Obama is hoping to start some massive new infrastructure construction, and these auto companies have both the materials and labor required to complete such a task. Not only would the millions of jobs be preserved, the country would finally receive an overhauled and modernized transportation system worthy of the 21st century.

 

 

 

A simple bailout isn't going to save the big 3. The economy is failing, and most people aren't willing to pay $15k-$25k for a new vehicle, especially one from a company that may go bankrupt in the next month.

 

Ford and GM have a combined $414b in liabilities and, I'm sorry but, a little bailout isn't going to fix that. A drastic change has to happen, and a government-takeover would certainly be one.

 

 

 

 

 

So to sum it up, you want to initialize communism into the playing field?

 

wahh wahh communism. This isn't the 50s anymore.

 

I'm not saying we should turn into some classless society where everyone is paid equal wages, sorry.

 

 

 

I'm proposing that the government buys (at least 2 of) the Big 3 and puts them to good use. They should drop most of their car models, keep only the more efficient and better-selling vehicles, and put the rest of their assets into building this new transportation infrastructure.

 

 

 

If you're looking for an accurate term to call this, try "nationalization".

[Sam]

They make bad cars anyway :roll:

[3rkid]

Down down down, and the debts just get higher.

[Adam007]

I don't really have a solidified opinion yet, but that's why I post here. By the time I'm done writing, I normally do. I don't like the idea of, as how Bush put it, abandoning free market principals to save a free market. The libertarian in me keeps saying printing out all of this money will be disastrous long term. But this isn't like the bank bailout. We're not writing a blank check to all of these companies. This a loan, and I think the auto companies need it.

 

 

 

They've gotten into a pretty bad situation, but I think if they can survive this recession and prove they're heading in a new direction the loan will be worth it. They're competing with a globalized workforce that has no healthcare and retirement requirements, so they're at a huge disadvantage. But if they can survive the next few years and get better cars out, the loan will have had been worth it.

 

 

 

This isn't just saving the auto industry. It's saving Detroit. Detroit is facing record foreclosures. The school system (which my Dad works for) is collapsing upon itself as people continue to move out of Detroit and schools lose funding. They just fired the newest superintendent, and things are continuing to go downhill. The issue with the mayor's scandal and him going to jail just add to things. Just this week the news was that the papers won't be delivered 4 days of the week, which is a first for Detroit. And on a not entirely related note, anyone been following the 0-15 Lions?

 

 

 

It's just been a terrible year for this city, and if the auto industry leaves Detroit, everything else will follow. Rather than just leaving the city to collapse though, it's the right thing to do to keep them afloat with a loan.

[Da_Latios]

Does Daewoo even make cars anymore?

No.