Auto Bail Out Package Approved By Bush
“Allowing the auto companies to collapse is not a responsible course of action,” President Bush said, citing danger for the entire national economy as well as the car makers. Bankruptcy, he said, would deal “an unacceptably painful blow to hardworking Americans” across the economy.
Both GM and Chrysler are running dangerously close to having cash situations that would have everyone questioning their viability. To stave off this, $13.4 billion of the money will be made available as early as this month. The loans will infuse GM with $9.4 billion, and Chrysler with $4 billion.
GM and Chrysler have until March 31st to produce viability plans. If the automakers fail in this task, they would be required to repay the loans immediately.
For satellite radio, the auto bailout could add a small amount of confidence, as it is the Detroit three that are the largest contributors to satellite radio installations.
Position – Long Sirius XM, No Position GM
They are probably hard at work designing the next 4 ton, 13 mile per gallon behemoth SUV. I trust these guys about as far as I could throw a Cadillac Escalade!
It is good news.
vaporgold
Does anybody really think that the Government is going to force the car companies into BK if the cars companies don’t live up to the term sheet. No way. If the car companies don’t live up to the term sheet the government is just going to give them more money.
I didn’t think that “orderly bankruptcy” crap was going to fly. I asked Tyler about it on the radio show last night. They gave like 100 billion to AIG and they are a bunch of pencil pushers…..
It is good news, but not a done deal by this Administration… Their request that Bond Holders reduce their equity position and that UAW take a big hit beyond what was already given up, are not going to happen…. IMHO
If you think about the failure of Congress to act, and the Republican opposition being Southern, we all need to see the motives by these folks in opposing the Auto Bail out to begin with…. Southern Republicans, supporting foreign manufacturing in their states, Hyundai, Honda, and Mercedes Benz just in Alabama, while Northern, US Manufacturers are failing. Bush is not fooling anyone in who he is supporting here spewing controlled bankruptcy as though he knew what he was talking about, Please……
I agree the southern state senators are representing the foreign auto makers without a doubt.If the Detroit automakers don’t make it they win, if the wages are lowered they win.Germany and Japan have to be very happy, probably pissing down their leg at the thought of the big three gone.
I believe unions have their place, but the job bank program is beyond any common sense at all. How can you pay someone 94% of their income and benefits for not working for years?
How many corporate jets do you really need?
Foreign automakers at about $48.00 an hour Detroit at $69.00 an hour.
The jobs are the union to lose, The company is the mangement to lose.
Is there a happy medium they both can live with to compete with the foreign auto makers?
I hope the Volt car is all that it is suppose to be. At a 40 mile a day range a lot of people can get back and forth to work without purchasing gas.
At a 80 mile a day range a lot of Americans could get back and forth to work without gas.
The American auto makers need to take the lead with the electric hybrids if they want to regain market share.
imho
vaporgold