Update: Oreo, Dog Thrown Off Building, Was Euthanized
People Wait For Tomorrow's UWS Apple Store Opening
Cheap Chicken Wing Deal Ruined by Gunslinging Teens
FIT Students Busted For Drug Dealing Get Probation
Views From Your Windows
President Barack Obama suggested that "controlled bankruptcy" might be how automakers GM and Chrysler are saved. The Wall Street Journal explains the government could "divide their 'good' and 'bad' assets" and then "bankruptcy [would] purge their biggest problems." Chrsyler was given 30 days to try to restructure on its own, while GM was given 60 days; Obama said, "It will require unions and workers who have already made painful concessions to make even more. It will require creditors to recognize that they cannot hold out for the prospect of endless government bailouts." GM would prefer to avoid bankruptcy, but said it "will take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process." A Times editorial says Obama's auto team's plan seems like "the best shot we have at obtaining a viable auto industry." And the Detroit Free-Press looks at why Ford execs are smiling.
White House Plan Could Put GM, Chrsyler Into Bankruptcy
add to stumble upon
add to reddit
tweet this
post to facebookComments (10) [rss]
Post a comment (Comment Policy)
Tips
Newsmap
Contribute
Latest Tip:
years of isiah thomas stories in chant form
http://www.nydailynews.com/sports/college/2009/11/14/20
[more]
So much for "the country can't afford to let the automakers go bankrupt." Are they making this up as they go along?
Yep, "pay as Yugo".
About time. Enough's enough with these clowns.
"Our strong preference is to complete this restructuring out of court."
Translation: A bankruptcy judge won't kiss the UAW's ass like we will. Their campaign millions bought some favors, and we'll cover them.
Wagoner, is said to have taken his $20M severence in Sacajewa dollars and was last seen swimming in it.
Reminds me of British Leyland, and that was a disaster.
economics 101
ok so a bankruptcy at gm or chrysler would do absolutely nothing to consumer demand for automobiles. consumers, regardless of if these two albatrosses are kept around, would need to buy just as many cars. that means that the auto industry would need just as many employees to build those cars. that means that others (ford, toyota, honda) would need to hire additional workers to build those cars.
by continuing to pump money into these losers, the government is keeping the supply of automobiles artificially high. this has created a glut of cars on the market, ensuring that each car that comes off the line at gm and chrysler is sure to lose money. not only that, the over supply drags down the other auto manufacturers cause they are now forced to compete with stupid manufacturing.
toyota, honda, nissan. these companies are clearly far better at manufacturing automobiles than the crap we have here. who cares if they're japanese. they employ americans, lots of americans. and they are better at this business. so by keeping this garbage around, we are damaging superior businesses that employ just as many americans.
Actually, by most measures the companies are now roughly equal in their ability to manufacture a quality car.
I think it's false to say that Toyota or Honda would employ "just as many" Americans. While they do and would employ many Americans, the corporate HQ and a lot of the R&D is still in Japan. I don't think that fundamentally alters your argument, though.
you're right, they are able to produce cars that are on par with the qualities of the japanese. the problem, however, is the the US manufacturers need roughly $65 per manufacturing hour to produce that automobile, while the japanese firm's need roughly $40 per hour.
Hey, America wanted a President with no working knowledge of economics. Let's see how much they still want it by the fall of 2012.
We already had a president with no working knowledge of economics (or much of anything else, for that matter). For eight years. A president who ran every company he ever got his hands on deep into the ground, then followed suit with an entire nation.