Posted on 11/20/2008 7:44:12 AM PST by Fred
WASHINGTON -- A full-court effort by U.S. auto makers to secure federal aid appeared to be on the rocks after the companies failed to convince lawmakers of the urgent need for a rescue.
Michigan Rep. Dale Kildee, Chrysler Chairman and CEO Robert Nardelli, GM Chairman and CEO Richard Wagoner, UAW President Ron Gettelfinger and Michigan Rep. Sandy Levin (left to right) prior to a hearing Wednesday on Capitol Hill at which the auto makers made their case for federal assistance.
Late Wednesday, Senate Majority Leader Harry Reid backed away from efforts to force a vote this week on a Democratic-backed bill. The Nevada senator said he might move a Republican alternative proposal Thursday, but suggested it faced strong opposition. "We have to face reality," he said.
A failure to gain support in Washington would be a major setback for all three companies and could force General Motors Corp. to file for bankruptcy protection, a move that would ripple through the economy.
GM is privately resisting suggestions from advisers that it make preparations for a bankruptcy filing, despite telling Congress this week it could soon run out of cash, according to people familiar with the matter.
The company's view is that consumers won't buy cars from a bankrupt auto maker. GM is concerned that if it were even to take steps in that direction, such as hiring bankruptcy counsel, the move would leak and unnerve potential GM customers.
WSJ's John Stoll talks about the second day of testimony of auto makers from Detroit, who are seeking money from the government. Congress is going in eyes wide open this time.
Because of its refusal to make plans for a bankruptcy, GM is "courting a Lehman-like situation," said a person familiar with the matter. Lehman
(Excerpt) Read more at online.wsj.com ...
Delta Airlines went through Chapter 11 and came out of it just fine and is now in the process of merging with Northwest Airlines.
Pouring good money after bad at GM would be a huge mistake. They need to make the changes to stay competitive and build good cars that can compete. The Unions have driven them into the ground.
My first suggestion would be to lose the corporate jets and fly commercial. Would help the economy by saving jet fuel and giving the airlines money for first class seats as we cannot expect them to fly coach! :)
They flew in their private jets to ask for a bailout. If GM fails, or Ford or Chrysler, it will be back stronger!!
Note to the UAW: You remind me a lot of the Palestinians in that you truly are your own worst enemy.
Did a union rep appear on the panel? If so, anyone know how he/she got there?
From where I sit, it doesn't appear as if consumers are buying cars from a solvent General Motors. And I say that sadly as the owner of an awesome 2008 HHR SS, and a previous 2004 Cadillac CTS
They do make some great vehicles, but the union goons need to be cut down to size.
The CEO’s and UAW leaders are happy with their present salaries. When their salaries are zero,I hope their still
happy!
I wonder which foreign interest will be the new owners of GM.
If my taxes are used to bail out the big 3 I get a free car or truck from each one since I’m an owner of these companies right?
Can’t remember where I read it but I saw where the largest auto maker in China was looking to pick up GM’s U.S. manufacturing facilities if they go under. Given the price of GM’s stock someone could pick up the whole company for a little over $1 billion. The value of the buildings and equipment have to be worth more than that.
Can we still bamboozle the Saudis and the Chinese to buy
our assets?
I don’t think it could be called a bamboozling when they’re paying 10 cents on the dollar.
It the American people that get bamboozled.
By fine do you mean degraded service and persistently nickel and diming the customer for everything is “just fine”?
No Bailout for you!
I have my own worries made acute this week. If the big three have to endure pain, I'll welcome them to the club.
Once again, the Dems have no guts for the hard decisions. They believe in the bailout and nationalizing industry as a socialist goal, but unless the GOP is providing cover, the Dems will never take the plunge. Fear of failure and the blame for failure being heaped on them acts as a palsy on the Dems ability to act.
I just bought Ford at $1.10 and by the time I got back to the account summary screen I had already lost money as it was trading at $1.08.....
Who would have thought?
rumor is that if GM goes bankrupt, NASCAR will be racing chariots next year.
hell, with Obama’s fantasimo energy plan, we may all be driving chariots.
Seriously, I am concerned about loaning money to any business that appears to not be meeting it’s obligations.
And giving money only changes cash on hand. The money does nothing to formulate a feasable business plan when the roof is already falling.
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