UPDATED: GM about to smash another record!

Perrysburg Dodgeboy wrote:

spoon059 wrote:

Perrysburg Dodgeboy wrote:
If the banks would have refinanced GM and Chrysler we 2 would not be having this conversation.

Don

And if GM or Chrysler had better management practices at the time they wouldn't have had the sudden and urgent need for a massive influx of capital. They would have been able to sell a product for a profit and been in possession of their own capital, thus not needing a bailout. I guess that little point doesn't factor into your argument very well though...

Miss management and the union pond scum had nothing to do with it. Fords loans came do before the Banks locked their vaults. In order for Ford to get their loans refinanced the Ford Family had to put up their personal property and stake in Ford to secure the refi. BTW two thumbs up to the Ford family!

GM and Chrysler did not have that option and it's a good thing for Chrysler GM didn't. Had GM been able to secure their refi, Cerberus Capital would have sold off the Ram and Jeep lines to the highest bidder then closed the rest.

When the Government was looking for someone to take over Chrysler Corp Nissan steeped up and said they would take Ram and Jeep only. They were told take it all or nothing so they walked away. So enter Fiat, looking to get their foot back in the USA what better way then to take over Chrysler. Unlike what some of the uninformed think it did cost Fiat money, just not up front. Fiat has pumped tons of cash into Chrysler and our plants.

No matter what Spoon and others think, had GM and Chrysler closed the effect on the US economy would have been devastating. Remember nobody was buying anything at that time. People that had jobs were so scared that they were forgoing any larger purchases. So the other car manufactures would not have picked up anything and all but the largest of GM and Chrysler's suppliers would have closed their doors. This would have then started a domino effect and spread not only though the US but the world. Think I'm full of BS? Do some research there is a reason why everyone was pushing for the bailout, even people that didn't like GM and Chrysler.

Don

Spot on. And may I add for those that say the GM/Chrysler jobs would've been snatched up by the other auto makers. How long would that have taken? So the estimated 1,000,000 workers loose their jobs and have to collect unemployment for how long before the other auto makers can hire them. 3, 6, 9 months? A year? My guess is all those workers that just lost their jobs could end up losing their house as well. It would've been a huge ripple effect. JMHO.