Quote:
Originally Posted by twin99
I have really mixed feelings about the bail out of the big three
I was really for it and I know it means saving jobs and I am all for that but will giving GM a ton of money really help them?
The problem is that people are still not buying there cars and that's why they are losing money like crazy every month. They need to make sales to generate profit to keep the doors open.
IMO, Bailing them out will only buy some time and delay the inevitable.
The sad part too is that GM is finally starting to put out some really hot cars but I think it's going to be too late.
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Wrong. GM still maintains 23% market share in America, more then anyone else.
GM's problems isnt sales, its profits. Giving GM the money would keep GM afloat till it could take advantage of the 20 billion dollar savings come Jan 1st, 2010.
There should be a total of 50 billion dollars, 25 for energy and 25 for restructuring costs, given to the Big 3.
This is gunna turn slightly political, but the Reps dont want to hand out money to the Union backed Big 3 because the the Unions dont back Reps overall, so this is there way of getting back at them. Not to mention their pockets laced with Import cash from Nissian, Toyota and Honda, as well as BMW, MB and VW. Of course they dont want it unless they are gunna get a kick back too.
But I digress....
If GM wanted a bail out, they would ask for 100B. This is a small loan to help restructure thier business due to the massive hurt the economy has put on them. Toyota, Honda and Nissan have felt it even worse, they just have more money to weather the storm. They have all seen thier NA profits drop 40% or more because of the drop of the dollar and rise of the yen.