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US Auto Industry Bailout

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Aussiejeff

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Well, as expected the Fed have used that hoary old chestnut "too big to fail" to justify a massive bailout package for GM & Chrysler.

There seems to be much dancing in the streets going on over this, but I have a couple of burning questions to put to my learned forum friends...

FACT- US car lots are RIGHT NOW jam-packed to overflowing with millions of un-sellable autos of every size and description. There is NO ROOM for one more auto for sale - let alone the millions the "revived" GM & Chysler factories will need to pump out to keep workers "occupied".

So, given this fact, how is throwing $Billions at those two dodos going to achieve anything meaningful at all, other than feather the nests of the execs by propping their bonus schemes and giving a bit of Xmas cheer to the "protected" (for now) auto workers?

Perhaps the money will be spent buying up millions of those existing un-sellable autos for scrap (I'm serious!), thus freeing up salesrooms and autolots so they can pile up the shiny new ones to be pumped out and delivered post-haste under the "bailout" plan? But, (and this is a big BUT) where are all the millions of new, enthused auto buyers going to suddenly jump from?

Of course, this plan now also raises the bar further for world "protectionism" to grow rapidly, as other automakers in other countries close the borders to foreign imports. Russia is already on to this. Then what - China? India? Korea? Japan? Australia? All this angst to save a couple of dodos? Sorry, I don't get what all the euphoria is about.

Please explain. :confused:


aj
 
Now,if you buy a new car and the conditions of the bailout?loan? are not met and the autos close with the flow on to the associated industries(spare parts,paint,tyres etc),what happens with your warrantry?repairs?Do you now have a car with no resale value whatsoever?Hands up if you would buy a car from them in the next year.
 
This is just the first installment of many. I read were Jag found a old Runway to store un-sold Jag's which shows how smart the CEO's are, the cars will be x yrs old once the depression turns, some one has to maintain them they would be better of sell them at any price at least being Jags they require a lot of spares.
 
Glen48 said:
This is just the first installment of many. I read were Jag found a old Runway to store un-sold Jag's which shows how smart the CEO's are, the cars will be x yrs old once the depression turns, some one has to maintain them they would be better of sell them at any price at least being Jags they require a lot of spares.
Click to expand...

I still think my Grand Theft Auto Protection Plan might just work.

Just build 'em, scrap 'em, recycle 'em, beg for a bailout then re-build. No need at all to sell one solitary auto to keep the industry powering on! :)

Repeat ad-infinitum :cool:

PS: Can I get royalties on this idea?
 
Aussie, we was in the US six months ago, the car yard I was in had on show NEW 2009 models as well as 2008,2007,2006,(all new) they would take of 25% for cash.
 
Aussiejeff said:
I still think my Grand Theft Auto Protection Plan might just work.

Just build 'em, scrap 'em, recycle 'em, beg for a bailout then re-build. No need at all to sell one solitary auto to keep the industry powering on! :)

Repeat ad-infinitum :cool:

PS: Can I get royalties on this idea?
Click to expand...

Aussiejeff, you are a genius and the US auto industry needs guys like you.

How quickly can you fly / paddle over to Detroit?
 
Just thinking (as a Ford owner) why Ford did not get any bailout money.

"Ford Motor Co. says it doesn't need federal cash now but would be badly damaged if one or both of the other two went under."

Could have fooled me that "if" GM or Chrysler went under it would damage Ford!

Ford gets none of the cheap & easy money and must compete against the mollycoddled GM and Chrysler.

Must be time to sack the management at Ford for remaining solvent and viable and missing the free handout.
 
the US consumer/tax payer doesnt want GMs or chryslers; but theyre being forced by their government to 'buy' them anyway. :confused::confused:

united socialist states of america.
 
Guys this is a real tough one, but i really think bankruptcy would have been the best option as the resulting restructuring and selling of assets might have saved them. As it is now they still will exist in thier current form until they comply with the terms of the bailout, if they do and they are just delaying the inevitable.

How can the fit survive if they made fit unfairly.....also, if i were Toyota i wouldn't be too hapy about the bailouts as they are subsidies in no less terms.

Cheers,

CanOz
 
I think Bush and his Bush lawyers bailed both out so to get them over Xmas and then its OBs problem also most of the $$$ will go to the lawyers for winding the companies up.
There was some Casino high flier who sunk billions to Ford a few years ago???
When this is all over there won't be make car makers left standing.
Merc have thousands of cars on the dock in USA they can't sell.
 
Glen48 said:
I think Bush and his Bush lawyers bailed both out so to get them over Xmas and then its OBs problem also most of the $$$ will go to the lawyers for winding the companies up.
There was some Casino high flier who sunk billions to Ford a few years ago???
When this is all over there won't be make car makers left standing.
Merc have thousands of cars on the dock in USA they can't sell.
Click to expand...

Like I suggested before, all the Gumint's have to do is offer endless bailout money for recycling new cars into scrap then re-build back into new cars again! Of course, new car sellers need a free cash bailout too coz' they won't get a cent otherwise! So what? The taxpayer can cough up till the cows come home to roost. :)

(1) Keeps the protected employees and industry happy.
(2) Keeps the stock market happy.

That's all that matters.



aj
 
I wonder how many people are holding off purchasing Cars because they know we are on the verge of major technology change - virtually every Car manufacturer is realeasing (or planning too) an Electric or mixture of by 2010 .....


Was a guy on telly the other night had converted his own Car to Electric and had a Widmill out front of his house to keep it charged ...... I want in ! Retro fitting existing Cars could be a big business on its own ... no major players around yet though ...
 
numbercruncher said:
I wonder how many people are holding off purchasing Cars because they know we are on the verge of major technology change - virtually every Car manufacturer is realeasing (or planning too) an Electric or mixture of by 2010 .....

Was a guy on telly the other night had converted his own Car to Electric and had a Widmill out front of his house to keep it charged ...... I want in ! Retro fitting existing Cars could be a big business on its own ... no major players around yet though ...
Click to expand...

Personally I was thinking of upgrading from a V8 to a V12:)
 
Mr. Burns after fitting the V12 will you change your Nick to Mr. Burnout?
 
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