What happens if we bailout the auto industry only to have them declare bankruptcy down the road?

The tax payers will be the proud owners of a worthless companies. Plan B will be the Taxpayers will be in the Auto manufacturing business, just as we are in the Real Estate, Insurance and banking business.

Then BHO will put us in the Health Care Business, Child care business, Construction business...There will be no private business any longer. After all, Govt. does it better, cheaper, faster and more efficiently than any private concern can. Look at the Postal vs UPS/FedEx for package delivery and Amtrak for efficient/profitable rail service or FEMA for disaster help.

Can't you just wait for the top notch service we will get when BHO gives us health care---heaven help us---6 months before CAT scans or operations and you will just have to wait to have a baby because you will need to pick a date for delivery and if you miss that date, we can see you in 7 weeks.

Fritz needs to be fired.

I'm a thousand miles away and can think of two other options they might have.

They could do a sale-leaseback of the plant and equipment, and generate immediate cash. If they have a long-term plan for viability, this would work.

They could also sell of some foreign manufacturing labels they own. Maybe there are some Swedish bankers that would buy back Volvo.

And even if those won't work, they could just sell. I don't think Britain suffered when the US companies bought Jaguar, nor are they affected by the fact that India owns it now.

Anyone with a problem of this magnitude and without a Plan B needs to be fired, outsourced, or otherwise eliminated. Always having a Plan B is part of the job description for the CEO of a Fortune 500 company.

If I recall correctly, you own an auto parts store. The question of an auto industry bailout may have direct impact on you.
Anyway, GM only needs financial help through 2009. In 2010, the UAW takes over the legacy cost, retired workers medical and pension cost. Right now, the legacy of retired workers cost GM $1 billion per month. It is the legacy cost that prevents GM from turning a profit on any models that retail for under $20,000.
Also, GM primary market today is Asia. They are selling much more and command much more of the market in China than any other auto maker in the world. If GM quit selling in North America altogether, they would be profitable. It is the North American market that is dragging them down.
Another problem with the industry as a whole is that the North American market just isn't big enough anymore for 3 domestic aotu makers. One of them has to close down. Ideally either GM or Ford should buy out Chyrsler and cut the industry down to 2 domestic car makers.

The only reason I even care if these irresponsible companies go out of business is because of the effect it will have on their employees. Maybe they should take the money they are going to use to bail out the car companies and divvy it up between the employees instead... Sounds like about as good a plan as they have now.

It is frustrating for Congress to say, "What is your plan?" And the CEO's just kind of shrug their shoulders then walk back to their private jumbo jets. It's really sick!

They whine because someone might take away their golden parachutes which amount to more money than most people make in a few years!

I agree, they will be laughing all the way to the bank, and the spa.....

The auto industry provides a lot of jobs.
That has to do with the welfare of the people.

With that being said, it could happen that the big 3 will go into a semi government receivership and will be somewhat socialized till this economic crises subsides and gets back on its feet.

I am against socialization of industry, except those of needed services and crucial commodities, like oil and our communication industry that is way to complicated for the average person to maneuver through. I remember when Ma-Bell was the only game in town and it was dirt cheap and easy.

Venezuela oil industry is socialized and they pay 14 cents a gallon. Zero profits, which for the USA would not be good, but lets say make gas $2 a gallon and the profits go to the state with a huge reduction is taxes.

Peace
Jim

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Well same goes for fannie mea and freaddie mac I cannot understand why the big hoopla over the auto industry and not the lenders/banks etc.... It is all bad from start to finish and anyone who voted for the Bailout to begin with should lose their jobs - throwing bad money after socialization of our country is the best way to bankrupt us the US anyway

but hey the lenders have the money and the government just wants to have stake/stocks in those business and control the money so why would they question them the auto industry will fail if they dont let the enviro wackos and unions stop dictating business and profit to them the free market works every time all we have to do is get government out of the way

Then we tried the best could've and failed...

Not trying at all would be a greater disservice.

I wouldn't give the bailout money without strict conditions, like a 15% decrease in all salaries and benefits packages. The removal of bonuses until its paid back and for the CEO's to all work for $1 until the 2012 or the loan is paid back.

Its that simple. You need the money, right? Well, when your company turns around you'll have plenty of stock options to cash in and reward yourself. But it wont be with govt money funding bonuses, it will be on your own accord.

The solution Romney posed all along about the Chapter 11 instead of 7 made "way" too much sense to because it would open the publics eyes to what is really going on.

They are going to take bail out money because it hanging out there.

They are still going to file chapter 11, and no I dont think that money will be repaid. I think it is a grand scheme they have already made. So many things can constitute the phrase "staying afloat".

The same thing that happened with Wall Street. I can't believe Bush, Obama, and McCain were for it. We are all screwed. If someone actually does the math...all of us are paying anywhere from $1,000-10,000 extra in taxes for the next two years. If you make over 150k combined...I'm sorry. That's all I can say.

PS. Regardless if you're Republican or not. I think the Democrats and I can even agree on the fact that we don't give a flying crock if these bigshots go out of business. How in the world would that effect us? Most of us are trying to sell our cars and opt for carpooling or public transportation right now.

yeah they should just let them fail, its highly doubtful that the big 3 auto makers will be able to compete with the imports in the long run unless something drastic happens which i doubt. there is to many problems with the unions, there is to many idiots in mid and upper management. they need a complete overhaul and its doubtful there going to do that, and as far as new cars to compete there going to take at least 8 years to make and who will pump money into the companies till there released? and even by then they probably won't sell well enough to keep the production lines open.

the best thing to do is to close down everything that's losing money and concentrate on the 2-3 models that they do actually sell and tell the unions deal with it or loss what jobs are left.