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Location: In a Galaxy far, far away called Germany
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They were already failing. The bankruptcy would have been in order to restructure - not to close it's doors. This is basically, what happened. Leaving out the "bail-out" would not have changed this - but it would have forced them to make their changes in practice, structure, and management. I do believe that the bail-out didn't save GM. What saved GM (for now) is the forced restructuring, an awareness of the American people to the plight of one of it's own and the fact that Japan's auto industry was non-competitive for almost a year due to the earthquake/tsunami.
Oh ye of little faith. We have bankruptcy laws so that companies in financial troubles do not "perish."
All some of these idiots have, is this false claim that if Obama had not bought GM with tens of billions of free taxpayer money, it would have perished. Plenty of corporations file for bankruptcy protections and come out stronger. GM would have looked good if they had filed for bankruptcy and dumped the union contracts
Poor management caused the problems that led GM to the brink of disaster, NOT the union. In fact, the year before the bankruptcy the UAW members took a major cut in pay rates and benefits to try to help the corporation.
People who think GM would have survived without goverment intervention in the financial crisis the country was under back then are either naive, dishonest or both. No one was loaning money. No one could have stepped in and bought up the assets of a company as large as GM including Bain Capital. Once GM had gone under it would have taken down all the small die shops, parts suppliers, and other vendors in a domino manner that would have put Ford and the foriegn auto companies in this country in crisis and unable to product their products.
GM closed down 17 of their plants, got leaner and meaner and changed most of their management staff, even board members as ordered by the court that oversaw the bankruptcy---they did all the same things that some people here claim was't done because of the bail-out.
Poor management caused the problems that led GM to the brink of disaster, NOT the union. In fact, the year before the bankruptcy the UAW members took a major cut in pay rates and benefits to try to help the corporation.
People who think GM would have survived without goverment intervention in the financial crisis the country was under back then are either naive, dishonest or both. No one was loaning money. No one could have stepped in and bought up the assets of a company as large as GM including Bain Capital. Once GM had gone under it would have taken down all the small die shops, parts suppliers, and other vendors in a domino manner that would have put Ford and the foriegn auto companies in this country in crisis and unable to product their products.
GM closed down 17 of their plants, got leaner and meaner and changed most of their management staff, even board members as ordered by the court that oversaw the bankruptcy---they did all the same things that some people here claim was't done because of the bail-out.
If we had let the auto industry fail as Republicans wanted, would Ohio be better off today than it is now?
Fact check: Bush approved the 2008 17billion bail-out of GM and Chrysler.
Neither side is being truthful in their portrayals of the situation or about what they would really do. They are checking polls and then lying for votes.
Don't tell me you actually believe any of these guys?
Spoken by someone who doesn't understand how interconnected the auto industry is via all the little vendors and die shops that design and build parts for all the auto companies.
Spoken by someone who doesn't understand how interconnected the auto industry is via all the little vendors and die shops that design and build parts for all the auto companies.
It was a union bailout plain and simple.
They could have gone into bankruptcy and re-emerged; companies do that all the time.
Who would have been hurt in the bankruptcy would have been the UAW that's who.
Spoken by someone who doesn't understand how interconnected the auto industry is via all the little vendors and die shops that design and build parts for all the auto companies.
Spoken by someone who doesnt understand basic economics. tell me wayland, do you think under extreme circumstances, if the investors decided to give up their billions of dollar investments in both GM and Chrysler, do you think the demand for cars would disappear?
And note what I said.. If the investors decied to give up their BILLIONS OF DOLLARS, haha, yeah, that'll happen.. NOT
Poor management caused the problems that led GM to the brink of disaster, NOT the union. In fact, the year before the bankruptcy the UAW members took a major cut in pay rates and benefits to try to help the corporation.
The union contracts crippled GM, and CEOs were blackmailed into making deals, but they didn't care as long as they got their golden parachutes. The unions were supposed to be looking out for the welfare of their members, but they too were greedy, and kept making this destructive demands until GM collapsed.
the United Auto Workers union’s extortionate contracts with GM — prevented the carmaker from either reducing its work-force costs or making its products more efficiently.
Mitt Romney’s proposal for a structured bankruptcy would have necessitated considerable federal involvement, too, but with a key difference: The UAW contracts would have been renegotiated, and GM’s executive suites would have been cleaned out, placing the company on a path toward innovation and self-sufficiency rather than permanent life support. Which is to say, Obama did for GM what he is doing by un-reforming welfare: creating a dependent constituency.
People who think GM would have survived without goverment intervention in the financial crisis the country was under back then are either naive, dishonest or both. No one was loaning money. No one could have stepped in and bought up the assets of a company as large as GM including Bain Capital. Once GM had gone under it would have taken down all the small die shops, parts suppliers, and other vendors in a domino manner that would have put Ford and the foriegn auto companies in this country in crisis and unable to product their products.
GM closed down 17 of their plants, got leaner and meaner and changed most of their management staff, even board members as ordered by the court that oversaw the bankruptcy---they did all the same things that some people here claim was't done because of the bail-out.
You are the one being dishonest. Bankruptcy protections would have eliminated those unsustainable union contracts, and removed the lode stone around the neck of GM, and it would have made it much more profitable.
Spoken by someone who doesn't understand how interconnected the auto industry is via all the little vendors and die shops that design and build parts for all the auto companies.
You mean like Delphi??? Obama only helped union workers, and left the rest twisting in the wind.
As a scandal develops surrounding the Obama administration’s termination of 20,000 non-union Delphi Corp. salaried retirees’ pensions, many of those disaffected workers plan to rally on Thursday in Dayton, Ohio.
At 10 a.m. at least 200 retirees who lost their pensions during the Obama administration’s auto bailout will join Ohio Republican Rep. Mike Turner at a rally outside a shuttered Delphi plant in Dayton to demand transparency from the Obama administration and accountability from government officials responsible for the decisions that led to their losses.
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