20 November
GM to Shut Down?
You probably heard of the financial crisis that affected the whole world.
Of course, the whole crunch got the auto-market, too, and unless the US Congress won’t agree to hand some $25billion in soft loans to the big three (GM, Ford and Chrysler), rumors say that in early January, General Motors may become insolvent and as a consequence … shut down.
The Big Three account for more than 10-percent of the American jobs so can you even imagine what will happen if they go down?
Voices in the market still think that even a bail out for GM may lead to shutting doors within months or weeks. Meanwhile the US Treasury thinks that it’s cheaper to save Detroit (or at least try to) instead of letting it die.
What do you think it will happen, and would you miss GM ? – via TopGear
November 20th, 2008 at 11:42 am
I do not think a rescue package is a good idea. Clearly, the management of these companies do not know how to run them. Maybe with the exception of Ford, who has enough money to keep on running until the end of 2009, these companies did little to provide for tough times. They’re under bad, bad management, considering that Toyota does not seem to need a rescue package to survive within the same marketplace. And the bosses, who so proudly proclaim how difficult it is for their people, take back massive salaries which weren’t cut in recent months. And to top all that, they arrived at the negotiations with private jets. As I said, I think they deserve to go down. Sad as it may seem for the workers. Any help now would be good money after bad…
November 20th, 2008 at 4:40 pm
Read:
.
Wall StreetJournal
November 19, 2008
Op-Ed Contributor
By MITT ROMNEY
.
Let Detroit Go Bankrupt
November 21st, 2008 at 7:55 am
Geez it’s a tough one… Those big companies sink it will have massive global fallout (Think of all the franchises and service centre’s in SA)…
But having said that – Great businesses come and go all the time. Bailing them out will set a massive precedent for businesses of all shape and form to simply rely on governments to bail them out.
Personal opinion is that it will be extremely hard to do but I think they should be sunk. Other car companies like Toyota, BMW and Volkswagen have shown they could adapt and provide a product and service that the client wants.
They are not applying to government for help because they ran their businesses efficiently.
April 8th, 2009 at 12:00 pm
[...] ultra-futuristic Jetsons-styled tomorrow with ease. Here is another addition to that list as both General Motors and Segway decided to bring the urban commuter of tomorrow into the New York Auto Show of this [...]
April 30th, 2009 at 9:14 am
[...] offer), tomorrow. It’s quite interesting to see what’s going to happen now with all the big boys in the auto industry. [via [...]
April 30th, 2009 at 10:42 am
[...] carbon fiber rims? A pretty amazing concept nevertheless, our main concern is that Saab and their GM parent company may not be in business by 2012, which would mean that the appealing design may never [...]
June 15th, 2009 at 4:07 pm
What Can we common Poeple do about the Bailout? Nothing.. we just have to wait and see if the company comes up and develops new cars and prototypes to please the americal consumer