GM can survive if it can get a monthly 2 billion dollar taxpayer cash infusion. (bankruptcy, loan)

[70Ford]

GM grapples to avoid filing bankruptcy as cash vanishes | Freep.com | Detroit Free Press

Hemorrhaging cash and with sales dropping to 25-year lows last month, the Detroit automakers announced financial results that show they each are burning through more than $2 billion a month to maintain operations. GM warned that its cash reserves could sink below the minimum level it needs to operate by year's end unless it gets federal aid or can tap other resources.

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Ermmm...what? That's 2 thousand million dollars. A month. $2,000,000,000 <--------That's a big number, people.

What?

Sometimes, you have to fall - to learn how to stand.

[sterlinggirl]

That's only $6.67 per person in the US...
I'll send in a check, but only if Sally Struthers promises to send me pictures of the foreign assembly line worker I'm supporting.

[taurus430]

GM should have done something a long time ago. Make smaller, fuel efficient cars instead of those big, fuel guzzling SUV's.

[Nepenthe]

GM Burn Rate:

$27,600,000,000 / year
$2,300,000,000 / month
$75,600,000 / day
$3,100,000 / hour
$52,540 / minute
$875 / second

[Dexterguy]

I know that every American just loves to slam the American Automakers, but the thing that many Americans don't know is that many more than just the direct automaker employees are supported by the automakers (GM, Ford, Chrysler).

I can't even begin to say how much these companies need this bailout, it would probably be the most important bailout that would ever be put into affect. If one, or two, or all of the Detroit 3 would go bankrupt thousands of retirees would lose their pensions, meaning they would most likely loose their house, car, etc. And this would mean no income or property taxes for the government, because the retirees would loose everything and so would all of the 100's of thousands of current employees with the Detroit 3.

If we can bailout big banks then why can't we bailout our automakers?

The reason why the automakers cannot build new fuel efficient cars that they would like is because they do not have the money to re-tool the aging factories that are not set up to build the cars of the 21st Century.

[Stratford, Ct. Resident]

Originally Posted by Dexterguy

I know that every American just loves to slam the American Automakers, but the thing that many Americans don't know is that many more than just the direct automaker employees are supported by the automakers (GM, Ford, Chrysler).

I can't even begin to say how much these companies need this bailout, it would probably be the most important bailout that would ever be put into affect. If one, or two, or all of the Detroit 3 would go bankrupt thousands of retirees would lose their pensions, meaning they would most likely loose their house, car, etc. And this would mean no income or property taxes for the government, because the retirees would loose everything and so would all of the 100's of thousands of current employees with the Detroit 3.

If we can bailout big banks then why can't we bailout our automakers?

The reason why the automakers cannot build new fuel efficient cars that they would like is because they do not have the money to re-tool the aging factories that are not set up to build the cars of the 21st Century.

Maybe, maybe i could endorse a govt. loan to Ford, seeing as they have been divesting the "premium" brands to raise $$$. Cerberus can go to hell as far as i'm concerned. They just purchased Chrysler and the majority stake of GMAC within the last 2 years. Was it a bad business decision? Apparently yes. Should that be our problem now? Nope.

GM has seen their market share drop virtually every year for the last, what, 20 years? Even with a guy like Bob Lutz trying to steer them on the right path, there are too many bean counters in their heirarchy who ruin the product to save a few hundred bucks. The idea that they could possibly just maintain market share, let alone gain market share, is unlikely. Therefore, IMHO, we would just prolong their agony by giving them a loan.

[5chevin5]

The Asian and European car makers have been making smaller efficient cars since the 70s, so to say that the "Big 3" didnt have the money to change their factors is false, they just lacked the vision and honestly the American car consumer didnt want that product yet. So they got caught behind the 8 ball...
My capitalist side says let them fail, serves them right and they have made fortunes for years, if they didnt plan ahead...F 'em, why should taxpayers bail them out? Maybe they can give a discount back to the consumer...a rebate or lower priced car?

But the human side also agrees with Dexterguy, the ripple trickle down reverb of that many workers losing their jobs/homes/pensions would be horrible. The worst part is that the CEOs are well covered while the plant worker gets nailed...Thats the worst part..

Tough one here...
5

[killer2021]

I say let them fall. They are producing inefficient cars that no one wants to buy. They had this big idea that they would make the most fuel inefficient cars on the planet and that gasoline prices would stay low. Their mistake! We shouldn't reward people who make bad mistakes we should punish them. If that means bankruptcy then so be it. Let the free market drive the bad companies out so we can get good new companies in here that can compete on the global scale. I personally believe we have such a high trade deficit because are constantly financing inefficient companies! Most new jobs are created by small business not fortune 500 companies!

If it were me, I would let all the big four automakers go bust and then let the foreign automakers in. Companies like toyota and tata automotive group.

[Huckleberry3911948]

we are going to miss you, let he who can hit the ball step up to the plate.

[f_m]

They should probably require that the companies be run by people who know what they are doing.