Big 3 CEO's (and UAW CEO) answering questions on CNBC (yesterday)

[Design1stCode2nd]

A few things; Any of the CEO’s of Ford, Chrysler and GM make more than all of the Japanese auto CEO’s combined. That speaks volumes.

The 3 million jobs lost is a guess by an “independent” company (forget the name). That company’s credibility has been called into question before. Keep in mind if the big 3 file for chapter 11 bankruptcy protection it doesn’t mean the jobs just disappear, factories close and everyone goes home the next day. Congress can enact a bill/law that provides loans, continues warranties and ensures replacement parts.

The question was would you buy a car from a bankrupt company? Most will say no so I believe the 80% figure. Now ask the question of would you buy from a bankrupt car company with federally back warranties, parts suppliers and federal loans as they restructure. Oh and you’ll get a nice discount too and probably a fat discount on your next car in appreciation of your support. I’m thinking that number would be a lot less than 80%.

The problem the big 3 are facing is the American people are still mad about the 700 billion for Wall Street and the 65 billion for AIG. We don’t understand it, we were just told the world is going to end and our 401k’s will be worth nothing (paraphrasing) so it was implemented.

Clock is ticking, if there isn’t action in the next 2-3 weeks the “Bankruptcy is not an option” will be the only option, well there is also chapter 7, liquidation but I really hope that doesn’t come to that.

If you want a Camaro or Challenger best get on the list/buy them now.

[TAG UR IT]

Originally Posted by Georgie

global warming gore uses a private jet. we fly pelosi out to san francisco on tax dollars. correct me if i'm wrong

[The_Blur]

Originally Posted by TAG UR IT

It's going to be a sad, sad Christmas for thousands of families nationwide. Poor little kids who don't get presents because some congressman thought they did what was best for the country. Those jerks need to look in the mirror....They just sat back and let it happen...saying they REFUSED to help OUR country....WHEN THEY CONTINUE TO POUR BILLIONS INTO OTHER COUNTRIES . We can't continue to hold the hands of everyone else....we need to get our feet planted firmly on the ground first.

I've got quite a few ways this gov't can save some cash... I'll hold onto my beliefs since this is not the place for them.

It is a sad day, folks. GM will go bankrupt. Say it. GM will go bankrupt. Not looking good at all....-and I have the faith that they will do everything they need to keep it together.

[Supermans]

Originally Posted by Design1stCode2nd

A few things; Any of the CEO’s of Ford, Chrysler and GM make more than all of the Japanese auto CEO’s combined. That speaks volumes.

The 3 million jobs lost is a guess by an “independent” company (forget the name). That company’s credibility has been called into question before. Keep in mind if the big 3 file for chapter 11 bankruptcy protection it doesn’t mean the jobs just disappear, factories close and everyone goes home the next day. Congress can enact a bill/law that provides loans, continues warranties and ensures replacement parts.

The question was would you buy a car from a bankrupt company? Most will say no so I believe the 80% figure. Now ask the question of would you buy from a bankrupt car company with federally back warranties, parts suppliers and federal loans as they restructure. Oh and you’ll get a nice discount too and probably a fat discount on your next car in appreciation of your support. I’m thinking that number would be a lot less than 80%.

The problem the big 3 are facing is the American people are still mad about the 700 billion for Wall Street and the 65 billion for AIG. We don’t understand it, we were just told the world is going to end and our 401k’s will be worth nothing (paraphrasing) so it was implemented.

Clock is ticking, if there isn’t action in the next 2-3 weeks the “Bankruptcy is not an option” will be the only option, well there is also chapter 7, liquidation but I really hope that doesn’t come to that.

If you want a Camaro or Challenger best get on the list/buy them now.

Originally Posted by TAG UR IT

It's going to be a sad, sad Christmas for thousands of families nationwide. Poor little kids who don't get presents because some congressman thought they did what was best for the country. Those jerks need to look in the mirror....They just sat back and let it happen...saying they REFUSED to help OUR country....WHEN THEY CONTINUE TO POUR BILLIONS INTO OTHER COUNTRIES . We can't continue to hold the hands of everyone else....we need to get our feet planted firmly on the ground first.

I've got quite a few ways this gov't can save some cash... I'll hold onto my beliefs since this is not the place for them.

It is a sad day, folks. GM will go bankrupt. Say it. GM will go bankrupt. Not looking good at all....-and I have the faith that they will do everything they need to keep it together.

Do you not understand that if the company goes bankrupt, it would ensure that the problems they are facing now never happen again and GM could finally be at equal footing and pay (in other words be competitive) with Toyota and Nissan for that matter as well as Honda. The new administration would love to be able to pass along Government control in whatever way it can. All those pension plans, retirement benefits, warranties, etc. etc. would be taken care of by the Government as it would make them look good by being compassionate and give them more control in the process. The current 26 billion was all going to go to Legacy costs anyways so the only difference would be in allowing for current and new workers not to fall under the same retirement plans immediately. If this is the only way to get the Unions out of the picture then so be it, as they have been an instrumental part in the whole mess GM is in right now. (Yes Government regulations and so forth along with a poor economy also played huge factors and Yes, CEO mismanagement or poor decisions as well)

Any way you look at it, the Camaro will get built as the plants, research, development, money spent on advertising, all are still there. Heck, the MSRP price might go down by a couple thousand if GM goes bankrupt because there is a premium we pay of over $2,000 per vehicle that goes into Legacy costs that won't be there because the Government would have taken that over in the bankruptcy scenario.. This would make the Camaro even more competitive vs its non-American rivals..Did you think of that? I could envision Hummer being sold off to a foreign car company and the getting rid of many lines and brands as GM once did with the Camaro and has done with the Firebird. However most would argue that getting rid of or putting on hold brands not selling well would be the smart thing to do business-wise so it is not a negative unless you wanted one or some of these vehicles as we all wanted a Camaro when it was put on hold.

All in all I would not worry about GM going bankrupt as much as you are. Keep the Faith as we all will see thru this and there will always be some patriotic Americans like most on this site that will always buy American no matter what happens..

[MCPOAJ]

omfg... this country has just fell apart if gm dies then i'm moving to canada or japan...

[Mr. Wyndham]

Originally Posted by Supermans

Do you not understand that if the company goes bankrupt, it would ensure that the problems they are facing now never happen again...

Do you understand that if they go bankrupt they won't be around to make any mistakes??

[Angrybird 12]

Lets just get EXXON to buy the big 3 up with the profits from their last quarter earnings... That way they can make themselves self sustaining, the more cars they sell the more gas and oil they can sell... then we can welcome back the big high powered cars and trucks we all love...

I am joking here...

[Supermans]

Originally Posted by Dragoneye

Do you understand that if they go bankrupt they won't be around to make any mistakes??

That's not true, the company is too large and has too many assets to simply disappear. There are many success stories that come from bankruptcy as it allows a complete restructuring and reorganization of priorities. If after this restructuring the company still fails to make a profit, then they must sell off the parts that are not profitable and then you have your scenario. This will only happen if the restructuring and reorganizing produces cars that are sub-standard in comparison to its rivals and at that point the company deserves to go under. However you seem to be skipping the first steps and perhaps a few years or more down the road. You have to give the company time to recover and if the union deals are restructured and re-worked (since we all know the unions are not going away) so they do not hurt the company as they are, then that is the first step to a nice and long recovery...

The worst thing that could happen is for the Government to take control of GM by buying 80% of their stocks and then in a few years giving the stocks over to the Unions so they take control. This was proposed by Chris Dodd I believe and would basically be the end of all that we know and care about when it comes to performance cars and the free market..Even if gas is below $50 dollars a barrel as it is now, the Government in control would still mandate as if it was $150 a barrel and the CAFE standards would be increased as if Global Warming was increasing when in fact we are in a cooling period.. Go figure..

We both want the same thing, however you support the bailout which would keep things going only to repeat history all over again until the Government takes full control... Then there is no going back...

[Hylton]

Originally Posted by MCPOAJ

omfg... this country has just fell apart if gm dies then i'm moving to canada or japan...

You're welcome anytime but if the Big 3 go, Ontario will be in just as bad of shape as Michigan and Ohio.

[bob2the2nd]

Originally Posted by Supermans

That's not true, the company is too large and has too many assets to simply disappear. There are many success stories that come from bankruptcy as it allows a complete restructuring and reorganization of priorities. If after this restructuring the company still fails to make a profit, then they must sell off the parts that are not profitable and then you have your scenario. This will only happen if the restructuring and reorganizing produces cars that are sub-standard in comparison to its rivals and at that point the company deserves to go under. However you seem to be skipping the first steps and perhaps a few years or more down the road. You have to give the company time to recover and if the union deals are restructured and re-worked (since we all know the unions are not going away) so they do not hurt the company as they are, then that is the first step to a nice and long recovery...

80% of people have said they would no longer even CONSIDER buying a car from a bankrupt company. In order for bankruptcy to work there still have to be people around that want your product. This isnt like the airplane industry where you know in 2 months you are getting on a plane and thats that, so it doesnt make a difference who you buy from as long as they are around in 2 months. Instead this is, Im going to have my car for the next 5-10 years and in year 4 I want to make sure its still going to have a warranty so when something goes bad someone can fix it.

[The_Blur]

Originally Posted by bob2the2nd

80% of people have said they would no longer even CONSIDER buying a car from a bankrupt company. In order for bankruptcy to work there still have to be people around that want your product. This isnt like the airplane industry where you know in 2 months you are getting on a plane and thats that, so it doesnt make a difference who you buy from as long as they are around in 2 months. Instead this is, Im going to have my car for the next 5-10 years and in year 4 I want to make sure its still going to have a warranty so when something goes bad someone can fix it.

Did everybody read that? If GM survives on only 20% of its customers, assuming that GM customers are the average consumer, then it would not survive bankruptcy.

[bigralph]

You are forgetting the trade value if you want to trade in with in the 4 years.

Originally Posted by bob2the2nd

80% of people have said they would no longer even CONSIDER buying a car from a bankrupt company. In order for bankruptcy to work there still have to be people around that want your product. This isnt like the airplane industry where you know in 2 months you are getting on a plane and thats that, so it doesnt make a difference who you buy from as long as they are around in 2 months. Instead this is, Im going to have my car for the next 5-10 years and in year 4 I want to make sure its still going to have a warranty so when something goes bad someone can fix it.

[BigRigMike]

Originally Posted by The_Blur

Did everybody read that? If GM survives on only 20% of its customers, assuming that GM customers are the average consumer, then it would not survive bankruptcy.

I can't remember where I read this but it was stated that if an auto company goes bankrupt then all of the suppliers are going to want cash up front for parts which would lead to hemorrhaging cash at a faster rate than currently. Which means it might start out in CH 11 but unless someone loans them some money they will be out of cash and filing CH 7.

[rgrizzard]

Originally Posted by Moose

Wagoner is far from "a moron", and to support Dragoneye's info, it was Wagoner who has made GM a HUGE success in China.

He might have made China a success(at what cost, negligence) but it's the whole that matters!