: GM and Chrysler get 13.4B in loans



shudog
12-19-08, 09:17 AM
For now...

Seriously, this is good news to me, not trying to start a thread on economic policy, but I'm interested to see the next generation of Cadillacs.

hazcaddy
12-19-08, 09:30 AM
Hmmm. I still wonder what the concept of an "orderly bankruptcy" has done to the value of my car...

The Tony Show
12-19-08, 09:47 AM
Good news for the American Economy:



Dec. 19 (Bloomberg) -- General Motors Corp. (http://www.bloomberg.com/apps/quote?ticker=GM%3AUS) and Chrysler LLC will get $13.4 billion in initial government loans to keep operating in exchange for a restructuring under a rescue plan announced by President George W. Bush (http://search.bloomberg.com/search?q=George+W.+Bush&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1).
A bankruptcy is unlikely to work for the automakers at this time and can’t be allowed, Bush said at the White House.
“These are not ordinary circumstances,” Bush said. “In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.”
The money will be drawn from the Troubled Asset Relief Program and the automakers will get an additional $4 billion from the fund in February for a total of $17.4 billion in assistance, according to a statement from the Bush administration. The funds would allow GM and Chrysler to keep operating until March.





http://www.bloomberg.com/apps/news?pid=20601070&sid=aHrcSXzA83iw&refer=home

c5 rv
12-19-08, 09:50 AM
Now if they can just sell some cars.

Jesda
12-19-08, 09:55 AM
Oh boy. Here we go. At least the first batch is from TARP and not additional funds.

Coma
12-19-08, 09:58 AM
So my factory warranty..?

Jesda
12-19-08, 10:08 AM
So my factory warranty..?

Nothing changes -- GM will still try to screw you.

Coma
12-19-08, 10:16 AM
Nothing changes -- GM will still try to screw you.

Good.

dkozloski
12-19-08, 10:22 AM
It amounts to a temorary propping up so they'll last long enough so that it's Obama's problem. The only way that GM can survive is to eliminate 2/3 of the $66 billion debt it's carrying and renegotiate the legacy retirement deals through Chapter 11 bankruptcy. The present deal is just a dog and pony show.

Florian
12-19-08, 11:21 AM
its a shame......


F

Florian
12-19-08, 11:22 AM
this is not good news...


F

Coma
12-19-08, 11:33 AM
:spam:

P-Funk
12-19-08, 11:59 AM
It amounts to a temorary propping up so they'll last long enough so that it's Obama's problem. The only way that GM can survive is to eliminate 2/3 of the $66 billion debt it's carrying and renegotiate the legacy retirement deals through Chapter 11 bankruptcy. The present deal is just a dog and pony show.

:word:

Sandy
12-19-08, 12:04 PM
I agree, pass the problem on.....

"NOT under my watch.........: - Bush

You & I will will continue to buy GM Ford & Chrysler, 'cause we are for the most part "car people" ---But Joe American "Car Dumb...will not. He will buy Toyo, Honda, Nissan, Mitsu, and Benz, BMW, Jaguar, Infiniti & Lexi.
He is fearfull the companies will fold, and his warranty will be null & void. Just the exact thinking that will bring that about !!!!

Lord Cadillac
12-21-08, 12:39 AM
Since the Unions helped Obama win, they'll likely get better treatment once he's in office. George Bush set some firm rules - but I don't think the UAW is going to have to obey. They should, though - otherwise nothing is going to change.

Spittin Game
12-21-08, 01:33 AM
I agree, pass the problem on.....

"NOT under my watch.........: - Bush

You & I will will continue to buy GM Ford & Chrysler, 'cause we are for the most part "car people" ---But Joe American "Car Dumb...will not. He will buy Toyo, Honda, Nissan, Mitsu, and Benz, BMW, Jaguar, Infiniti & Lexi.
He is fearfull the companies will fold, and his warranty will be null & void. Just the exact thinking that will bring that about !!!!

Dude, you are amazing. :helpless:

I love how the only "car people" to you are the ones who buy American. The others are "car dumb".

concorso
12-21-08, 05:23 PM
I agree, pass the problem on.....

"NOT under my watch.........: - Bush

You & I will will continue to buy GM Ford & Chrysler, 'cause we are for the most part "car people" ---But Joe American "Car Dumb...will not. He will buy Toyo, Honda, Nissan, Mitsu, and Benz, BMW, Jaguar, Infiniti & Lexi.
He is fearfull the companies will fold, and his warranty will be null & void. Just the exact thinking that will bring that about !!!!

-Benz owned Chyrsler for awhile, was it Un-American to buy Chrysler at that point?
-GM obviously thinks BMW is a good enough brand to do Hydrogen research with, so if its ok for GM to work with them, its ok for me to buy from them.
-Jaguar, again, owned by Ford. Is it ok to own the company, just not to buy the product?
-MB has no equivalent brand in the US. When an american company offers the range of products MB does, Im sure people will buy them.

Its unamerican to only support american companies. When American companies are left uncontested, they produce crap. Competition keeps GM on its toes, or at leat it should.

Sandy instead of criticizing purchases now, you should have been criticizing people back in the 70's when GM was out to convince the public that GM doesnt care.

concorso
12-21-08, 05:27 PM
I still think this is pointless. As long as GM is losing money per vehicle, it doesnt matter if they sell more cars...that would just increase cashflow and become a temporary fix.

I really hope GM trims down production capacity (still 10% above where they should be), trims the product lines and advertises the hell out of all their new products. I mean, its not like the UAW are going to back down, and I still believe they are the one major cause of the problem. People can say all they want that product killed GM, but even up until last year, GM sales were still 2nd to nooone. Which tells me its a profit problem, not just a product problem.