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well i'll tell you first hand that right now there are more people driving and fixing up used cars then buying new ones. so for all those guys that work in dealerships will have a job, just not preping new cars for delivery. right now their saying on the news that their are alot of repair shops that busier than ever.
Does everyone understand this this is a LOAN, that will be paid back????? I don't see what's wrong w/a loan when we are throwing away billions in Iraq every week.
Investment, not a bailout. Notice what it says about government subsidies and currency manipulation.
Quote:
Unionized U.S. automakers are highly productive. The top two most productive auto assembly plants in the United States in 2005 were UAW plants (in terms of hours per vehicle assembled). In fact, six of the top 10 plants were UAW shops (Harbour 2006, as cited by Shaiken 2007). Product reliability for U.S. manufacturers is now approaching that of Japanese producers in some cases (Cohn 2008). This high productivity has allowed domestic manufacturers to compete with foreign companies that benefit from government subsidies, including manipulated currencies in Korea and Japan that reduce costs by 10% to 20%, and national health insurance systems in most competitive countries that remove the burden of covering costs for existing workers and retirees. Such high-productivity industries are exactly what is needed to ensure future economic growth. Union auto workers have already taken substantial hits on pay and benefits. For example, contracts negotiated in 2007 slashed wages for new workers by 50%. In addition, new workers will not be guaranteed any retiree health care benefits, and will not participate in the traditional defined-benefit pension plan. On top of that, the UAW agreed that the responsibility for health care benefits for existing retirees would be transferred from the auto companies to an independent trust, called a Voluntary Employee Benefits Association. Analysts now believe that the labor cost gap between the Detroit-based auto companies and the foreign transplants will be largely or completely eliminated by the end of the current contracts.
Does everyone understand this this is a LOAN, that will be paid back????? I don't see what's wrong w/a loan when we are throwing away billions in Iraq every week.
Have they explained how they were going to pay it back. That's the issue, to me anyway. Chrysler already went down this road about 30 years ago, now history repeats itself.
Have they explained how they were going to pay it back. That's the issue, to me anyway. Chrysler already went down this road about 30 years ago, now history repeats itself.
yeah their going to pay it back on the 125 year layaway plan..
Does everyone understand this this is a LOAN, that will be paid back????? I don't see what's wrong w/a loan when we are throwing away billions in Iraq every week.
It is a loan they need to get from the governamnt because no one else will loan them the money for a reaqson. They haven't shown a profit;have massive loses and no real prospect in the future. Its liike loaning a millon to a homeopwner who has three million in liabilites and has just loss his job;on the bet that he will somenow get a six figure repalcement job in a town with no employment.
Have they explained how they were going to pay it back. That's the issue, to me anyway. Chrysler already went down this road about 30 years ago, now history repeats itself.
Funny you should mention the Chrysler loan back in 1979, the Detroit Free Press just did an article on it Like 1979, next auto rescue won't be easy | Freep.com | Detroit Free Press (http://www.freep.com/article/20081117/BUSINESS01/811170310 - broken link) .
Basically, it notes that the government back then required Chrysler to detail its recovery plan, the government placed an oversite board over the company, Chrysler was obliged to come up with matching loans from other sources, and a laundry list of cutbacks at both the executive and blue collar levels were enacted at the federal government's insistence.
It also notes that Chrysler repaid the loan in full in 1983, which was the first year that they could pay the loan back. The federal government made a profit of $311 million on the original loan of $1.5 billion.
Sure, that's only a 20% return over four years, but it was tax free profit for the federal government.
The 1979 Chrylser deal is being looked at as a blue print for any possible new deal.
It is a loan they need to get from the governamnt because no one else will loan them the money for a reaqson. They haven't shown a profit;have massive loses and no real prospect in the future. Its liike loaning a millon to a homeopwner who has three million in liabilites and has just loss his job;on the bet that he will somenow get a six figure repalcement job in a town with no employment.
texdav, do you know of anyone besides Hank Paulson who has $25 billion available to loan out? Even the Japanese and the Chinese don't currently have that kind of money, and the Saudis are keeping awfully quiet.
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This just in! Will the US congress follow suit?
Auto Bailout Pact Facing Opposition in the House - Automotive * US * News * Story - CNBC.com (http://www.cnbc.com/id/27821366 - broken link)
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