GM flat broke?

[SmartCard]

and accordingly, GM's interest in buying Chrysler is now put on hold....

[vwW12]

Originally Posted by BigWarpGuy

Alot of people will lose jobs if GM goes out of business.

Says who?

People in the U.S. will carry on needing to buy roughly 15 million cars a year. That's a lot of business and money to be made.

If GM goes broke, all kinds of car manufacturers will rush in to buy pieces of the bankrupt business. A plant here, a plant there, to Honda, VW, Nissan, Toyota, Peugeot, etc.

In the end, you will have the same or more U.S. jobs, just under new owners. Don'tcha know Honda is already more so of a U.S. company than anything else, for instance?

[jwight]

Just a reality check - cars sales are down now. The Big 3 for sure, but it's slopping over into the import brands as well. Toyotas, as well as BMWs and M-Bs, are not selling. The people with cash on hand or a steady job may carry on buying cars, but unemployment keeps rising and the mortgage mess is nowhere near done. No job, or having to choose between paying for a roof over your head or a car, means fewer people buying cars. Not looking for anybody to go out of business, but if GM/Ford/Chrysler tank, there will be huge job losses, adding to the ones already out there.

http://www.msnbc.msn.com/id/27516318/

http://www.msnbc.msn.com/id/27593678/

http://www.msnbc.msn.com/id/22420332/

[xcrew229x]

One question for anyone who might know......... is this GM USA, or GM worldwide? Both GM and Ford like to forget the rest of their worldwide operations when talking money.

[jwight]

I think it's their USA operations; they both have done well in Europe, but now that the whole economic mess has hit the EU I'm not sure how they're doing over there anymore.

UPDATE: looks like GM Europe's (Opel/Vauxhall) 08 sales are down 6% (even more for SAAB) so far: http://www.detnews.com/apps/pbcs.dll...453/1148/rss25

[forestacademy]

Originally Posted by xcrew229x

One question for anyone who might know......... is this GM USA, or GM worldwide? Both GM and Ford like to forget the rest of their worldwide operations when talking money.

And if the US bails them out will we be bailing out production in other countries?

[jetfuel]

why not let Exxon Mobil or BP lend them the money to sustain their American made gas guzzlers....is not like they didn't made enough....

jetfuel

[dbatch1715]

I read today that U.S. auto manufacturing is less than 1% of the GDP of this country now.

[vwW12]

Originally Posted by dbatch1715

I read today that U.S. auto manufacturing is less than 1% of the GDP of this country now.

Which raises a point: why must single mothers be taxed to give away money to certain carmakers?

Gotta tell you: if the store where the single mom works shuts down, there will be no taxpayer largesse to prop up her failing employer.

But somehow we are supposed to have our taxes go to save GM?

[dbatch1715]

Without a certain amount of industry. we will become a banana republic or worse. I'm just waiting for GM and Ford to declare bankruptcy, so they can get out of their obligations. A leaner Ford and GM might be able to survive, but not with the health care and pension monkey on their backs now. It's not fair, but how many companies actually do the right thing? Taxpayers, stockholders and workers beware.