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Ford Wins! GM/Chrysler read last rights

Posted on: February 20, 2009 9:42 am
Edited on: February 20, 2009 9:44 am

So here we are, just 2 months after GM and Chrysler sucked $15,000,000,000 from the U.S. tax payer, they are back looking for another 20+.  So 15 billion could only keep them afloat for 2 months, what good is another 20 going to do?  Get them by till April, when they will be looking for another 20 billion? 

Through it all, Ford has said thanks but no thanks to Tax payer money (at least at this time).  In doing so, not only have they saved face, but quite possibly the reputation of their brand.  Let's be perfectly honest here folks, after knowing GM and Chrysler needed our money just to keep their doors open, how confident are you in their future?  Makes you want to just run out and spend your hard earned cash on a new Malibu doesn't it.  Fact is most Americans don't want to support a welfare case, and that is exactly what GM and Chrysler have become.  Much by their own doing. 

Restructure their product line, that was the case made for the Auto Bailout.  Borrow money so they can survive, and restructure their product line to meet the current market.  Is this a Joke?  What market, smaller cars?  GM already has 7 vehicles that get 30+ miles per gallon.  Do you want to see them?  Don't go to a parking lot.  Don't go on the highway.  They are not there.  You have to go to a dealership, they are chuck full of them.  NOBODY IS BUYING THEM!  Americans don't want cheap, small cars.  Even with $4.00 a gallon gas, they didn't sell.  Sure Toyotas and Hondas did, but even they took a hard hit this past year, and these companies have dominated the small car market for the past 2 decades.  No American family, with 2 small kids in car seats, wants to try and cram all their stuff in a Aveo and go on vacation.  They simply don't fit. 

The answer isn't some new miracle product that will draw people in on a buying craze.  Certainly not in the current economy.  The answer is restructuring the manufacturing and selling process so they can make a profit.  That is both on the worker and executive level.  Until they do, they will continue to lose money per sale.  They just better home they haven't completely soiled their name brand to the American people.

Thumbs up to Ford.  Even though they are hurting, and they are, they had the balls to say we will weather this storm on our own.  And we will rebound!  Now just don't go making a liar out of me and come running to Obama with a cup in your hand.


Since: Feb 18, 2008
Posted on: March 5, 2009 10:33 am

Ford Wins! GM/Chrysler read last rights

So who still thinks the Government investing in GM is a good idea?

Since: Feb 18, 2008
Posted on: March 3, 2009 10:56 am

Ford Wins! GM/Chrysler read last rights


Terraorca, I believe I addressed the subset of the U.S. economy that is dependent on GM.  But the problem remains, will a bailout save GM?  We are giving them a helping hand, but all it is doing is keeping them a float for 3 months at a time.  I stand by my position, save what we can, in this case, it is what portions of GM that can sustain themselves.  We are never, ever going to be able to save the whole of GM, to try is to waste tax payer money and doom more jobs to failure than necessary.



You mentioned pensions and how foreign companies don't have to pay them.  Pensions were a bad idea from the onset.  Of course everyone would like a pension, but financially, they are a failed system.  How many professions have pensions?  There is a reason why they don't.  GM is the model for how not to run a business.  Over paid workers.  Over paid execs.  Poor product development, I mean really, how could a board actually approve the Pontiac Aztec and seriously believe it would sell.  What was their target group?  blind, brain dead consumers? 

Fact, GM cannot sustain itself and never will be able to again.  What does that leave us for an option?

Since: Sep 20, 2006
Posted on: March 3, 2009 12:25 am

Ford Wins! GM/Chrysler read last rights

The problem is that the GM prices became bloated because retiree benefits total almost $2500 per car . Do you understand the implications of that factual statement . Do you say to the GM retirees ,sorry we just can't afford to pay your benefits anymore. Part of the problem is that there was a time and a place for unions , but that time and place is over because of modern government employee protection.

Ford is in the favorable cash position right now because they sold out their stockholders and their future. They did this by selling $35,000,000,000. worth of patents and patent rights.

None of the "foreign " manufacturers has the burden of retiree benefits or UAW outdated contract wage agreements. That is not a fair market. That is not the way it is for the US trying to sell cars in Japan , Korea , or China . Import tariffs are standard operating procedure for those countries on our automotive products in their countries.

When you are bailing out GM , you are bailing out American manufacturing , because the two are so impossibly interwoven. There are many many businesses that are hopelessly dependent on GM to stay in business. Consequently when you bail out GM , in reality you are bailing out American manufacturing. This is not a simple fix because if GM goes bankrupt , guess who pays for that , you're right , we do !

Feel free to reply your thoughts.


Since: Jan 1, 2007
Posted on: February 27, 2009 7:20 am

Ford Wins! GM/Chrysler read last rights

IMHO, by continually running to Congress with their hands out crying poverty they are signing their own death warrent. Their own lack of confidence is making any potential buyers think twice. Are you going to purchase an auto AND warranty from a company that is on the brink? Gloom and doom does not sell. How can you expect the public to have confidence in you if you do not even have confidence in yourself.

As far as gov't intervention goes, it should not monetary at all. The role gov't should play is as moderator between the companies and the UAW. But that cannot and will not happen due to the fact that the UAW contributes to too many campaigns and it would be nearly impossible to have a fair and impartial panel to oversee the negotiations.

Since: Feb 18, 2008
Posted on: February 26, 2009 12:44 pm

Ford Wins! GM/Chrysler read last rights

GM posts a 9.6 billion loss for the 4th quarter.  So what did they do with the tax payer money already given to them?  How was it spent?  The answer is they used it just to keep afloat for the past 2 months.  So what do we think the next 30 billion will do?

I understand what GM filing for chapter 11 means in the grand scheme of things.  And how it will effect the thousands of smaller companies that do business with GM and how they depend on GM to sustain themselves, but what is the goal?  Are we going to just lend GM 20 billion every couple of months and never pull the plug?

My original solution for GM/Chrysler was best.  These companies will not survive as is, that is plainly obvious.  Break them up.  Chevy, GM, Jeep, Saturn, what have you all exist independently.  Let the individual pieces restructure and try and make it on their own.  Some will fail, some will not, better to save what pieces we can and rebuild from there.  The alternative is to let the parent companies bring down the whole, in which case, the U.S. economy could go from a bad recession to a depression.  Congress will never take this approach however, it is more their style to pander to everyone, and accomplish nothing.


Since: May 30, 2008
Posted on: February 26, 2009 11:55 am

Ford Wins! GM/Chrysler read last rights

i just totaled my car not too long ago and bought a mazda, a company that ford has a stake in.  drove the GM equivalents and they were clearly inferior and over priced. 

Since: May 30, 2008
Posted on: February 26, 2009 11:52 am

Ford Wins! GM/Chrysler read last rights

GM and Chrysler don't neccesarilly have to close up shop either.  chapter 11 bankruptsy is a protection against that.  it helps you restructure your business and contracts with debtors and employees so the business can become viable again.  but the dems dont want that to happen so they can funnel money to their union campaign coffers for re election.  not sure why everyone is so afraid to fail.

Since: May 20, 2008
Posted on: February 24, 2009 5:25 pm

Ford Wins! GM/Chrysler read last rights

Right you are Gastrapod.  Free market capitalism in this country has been dying a slow death, although the pace has quickened in the last few months.  Nationalized health care, nationalized banks; what's next?  Are we going to nationalize the auto industry too?  Back in the 80's we had a spate of airline companies going under: Eastern and Pan Am come to mind.  Correct me if I'm wrong but the airline industry survived.  The healthier airlines picked up the slack and a few new carriers were established.  GM and Chrysler make lousy products that are way too expensive.

Business is simple.  You make a product or provide a service and try to sell it.  If you sell enough of it, your business grows.  If you can't sell it, you either have to change your product, or make it more affordable.  You can change your product either by improving the quality or by giving your customers what they want.  The bottom line is if you can't change the product or the price you will continue to not sell that product, in which case you lose. 

Personally, I'll never buy a GM or Chrysler product.  If nothing else Ford is winning the PR battle amongst the Big 3.  Perhaps that will sway customers in their direction; I'm sure they're banking on it.  My hat is off to you--now stick by your guns.   

Since: Jan 17, 2008
Posted on: February 23, 2009 7:36 pm

Ford Wins! GM/Chrysler read last rights

I have to agree with you. GM and Chrysler exec.'s are merely trying to put a band aid on the problem and not actually trying to fix the problem. This is obviously how they have been conducting business for a long time now and figured it would work again. But it's too late for that now, it doesn't work for the long haul.

Ford realized they too have been over using the band-aid method and when the cold hard facts of life met them face to face, they knew something had to be done. Kudos to Ford.

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