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GM Warns It Won't See New Year Without Aid
CBS/AP ^ | Dec. 3, 2008

Posted on 12/03/2008 11:15:36 AM PST by george76

A top General Motors executive repeated claims Wednesday that the auto giant may not make it to New Year's Day if Congress doesn't approve a federal bailout for the beleaguered industry.

"We've seen … not only continued pressure in our business but the pace of deterioration has accelerated. October and November were just the worst levels we've seen post-World War II."

(Excerpt) Read more at cbsnews.com ...


TOPICS: Business/Economy; Extended News; News/Current Events; Politics/Elections; US: Michigan
KEYWORDS: 110th; auto; automakers; automotive; bailout; congress; generalmotors
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To: Long Island Pete

There is one group that this should scare to death.

The unions.


51 posted on 12/03/2008 11:49:49 AM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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To: george76

The title reminds me of an MLB owner’s comment in regards to the MLB umpire’s strike: “It is either a threat to be ignored or an offer to be accepted.”


52 posted on 12/03/2008 11:50:20 AM PST by Jibaholic ("Those people who are not ruled by God will be ruled by tyrants." --William Penn)
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To: californianmom

They don’t want to go Chapter 11 because a bankruptcy trustee might slash their salaries and perks. And a trustee might actually expect them to produce some tangible results, too.


53 posted on 12/03/2008 11:51:04 AM PST by henkster (It's time for a conservative "long march through the institutions.")
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To: george76

... lets give the banks money to burn ... but a loan to the automakers is the end of the world.


54 posted on 12/03/2008 11:51:13 AM PST by Mark was here (The earth is bipolar.)
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To: Redbob
True, UAW assembly workers don't make $70 an hour in wages, but when the whole compensation package is calculated (including health care, pensions, and the infamous “jobs bank”) the total is very near $70 per hour.
55 posted on 12/03/2008 11:51:34 AM PST by quadrant (1o)
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To: pburgh01

The last GM car I bought was a new 1980 Buick Skylark.

That is WHY it was the last GM car I bought.


56 posted on 12/03/2008 11:52:01 AM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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To: Spktyr
Not only that, we’re actually *better* in terms of quality and productivity than the Germans - if we’re not unionized.

.....Bubba Makes Wheels here in UpState SC does a fine job.....

.....lots of my friends and neighbors work there and the cars are great.....

57 posted on 12/03/2008 11:53:14 AM PST by cyberaxe (((.....does this mean I'm kewl now?.....)))
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To: Perdogg

They would have to pay me to buy one. I recently rented ford fusion and edge and both are fantastic vehicles. Fords going to survive.


58 posted on 12/03/2008 11:53:33 AM PST by omega4179 (Pardon Ramos and Compean !! Hello Jorge??)
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To: WOBBLY BOB

That’s a lot of US Auto Industry that went out of business that didn’t trigger depressions or kill the US Auto Industry.


59 posted on 12/03/2008 11:54:41 AM PST by mnehring
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To: californianmom

“They don’t want to go Chapter 11 because they say that people won’t buy a car from a company in bankruptcy. How likely is anyone to buy a car when the head of the company says they may not be there by the end of the year?”

Their scare tactics don’t seem to hold water. Unfortunately, the gov. is just begging for a good excuse to fork over taxpayer money.


60 posted on 12/03/2008 11:56:12 AM PST by smallbiz (Palin 2012)
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To: pburgh01

I’m in Detroit and totally agree with you.


61 posted on 12/03/2008 11:56:38 AM PST by netmilsmom (Psalm 109:8 - Let his days be few; and let another take his office)
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To: RobRoy
Years ago, a secretary in my office - no more than 19 - bought a GM car she'd dreamed of owning since childhood. She had nothing but problems with the car, taking in back to the dealership so many times that she almost lost her job for absenteeism. Finally, she complained the the Regional Vice Poobah in Atlanta. He told her, “You don't expect them all to be right, do you?” Every time, I think about buying a car from the Big Three, esp GM, I remember the story.
62 posted on 12/03/2008 11:57:46 AM PST by quadrant (1o)
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To: mnehrling

...but we’re all still DOOMED without them!!!


63 posted on 12/03/2008 11:58:27 AM PST by WOBBLY BOB (ACORN:American Corruption for Obama Right Now)
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To: omega4179

Ford Fusion is a Mazda 6, that is assembled in Mexico. A Fine American car, yep.


64 posted on 12/03/2008 12:06:48 PM PST by Ed Condon (Wanted, newer tag line in good condition.)
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To: george76

Has anyone discussed a takeover of some of the idled capacity by the Japanese mfgs? Demand is down but those numbers don’t yet take into account the 50% decrease in gasoline price. GM will leave a hole that good manufacturers can fill.


65 posted on 12/03/2008 12:12:47 PM PST by NonValueAdded (once you get to really know people, there are always better reasons than [race] for despising them.)
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To: george76

boo hoo...


66 posted on 12/03/2008 12:13:35 PM PST by MD_Willington_1976
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To: cyberaxe

Damn right. If I could afford it, I’d buy a Greer-made Beemer in a heartbeat. I wonder if BMW ships any of those South-Carolina-made models back across the Atlantic to Europe? Wouldn’t it be a hoot for some Bush-hating Eurosnob to realize that his new BMW was made by “rednecks” in one of the reddest parts of one of the reddest states in America? And that it’s built BETTER than the ones BMW makes in Germany?

}:-)4


67 posted on 12/03/2008 12:16:16 PM PST by Moose4 (Hey RNC. Don't move toward the middle. MOVE THE MIDDLE TOWARD YOU.)
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To: RobRoy

I had an `81. Bad steering sector—a `bear’ to turn the wheel when cold?


68 posted on 12/03/2008 12:17:01 PM PST by tumblindice
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To: cyberaxe
I am in Cola so the commute to the mines would be a killer.
69 posted on 12/03/2008 12:18:32 PM PST by wally_bert (Tactical Is Still Missing A Chair! Star Wreck In The Pirkinning......)
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To: george76

I’ve got a question: What’s wrong with GM’s books? Whatever it is, the union and management are all in on it. The Feds ought to sic an army of forensic accountants on GM, heck on all of the Big 3, before the automakers get another dang dime.


70 posted on 12/03/2008 12:19:20 PM PST by mewzilla (In politics the middle way is none at all. John Adams)
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To: californianmom

Thank you for making the $65,535.00 point here.

The second point that riffs off your point is “how many people who are worried about future unemployment, the economy, the declining value of their house, their mortgage, their retirement, their kids college expenses, etc - worry about buying a new car, regardless of the Chapter 11 status?”

Well, as we see from the car sales stats for November, not many. Even the Japanese automakers are seeing huge declines in sales from a year ago. It isn’t just a “GM” thing or a Big Three thing - it is a *consumer* thing. The consumer is tapped out, run dry, has nothing left to spend but pocket lint.


71 posted on 12/03/2008 12:29:35 PM PST by NVDave
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To: NonValueAdded

Why would they want to take over the idled capacity?

Seriously, why would they? Much of it is in union states. Why buy a problem you don’t have now?


72 posted on 12/03/2008 12:32:22 PM PST by NVDave
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To: NVDave

Hey GM, it’s global Stupid. We are in for a long ride, and it won’t be in a brand new GM vehicle. And why the hell should GM receive a dime? If Uncle Sugar wanted to help GM, he could give a $10,000 credit to all GM buyers. If Uncle Sugar “gives away” billions of dollars directly to the union...er uh GM, it will go directly into the toilet.

STOP NOW!!!


73 posted on 12/03/2008 12:34:43 PM PST by gathersnomoss (General George Patton had it right.)
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To: mewzilla
49 states get an "F" in college affordability in a new report today. Why not haul all the college admins, assistants to the assistant dean, deans,etc , in front of Congress. Then grill them on how they got there for good measure.
74 posted on 12/03/2008 12:35:01 PM PST by WOBBLY BOB (ACORN:American Corruption for Obama Right Now)
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To: mewzilla

There’s nothing really “wrong” with GM’s books. It is their business plan.

They knew they were bleeding cash since about 1999 to 2000. Starting in 2002, they starting buying down UAW contracts, etc. They’ve gotten a new pay scale for new employees, etc.

Still, they were losing money on most cars they shipped - but they would lose money more slowly than if they had the level of sales they’re seeing now. Much of their expense load is fixed, and they can’t shed it when they’re not selling cars. If they could sell enough cars, they could make the cash they have last much longer, but with auto sales plummeting as they have this year, the true scale and inflexibility of their expense load comes into view.


75 posted on 12/03/2008 12:35:28 PM PST by NVDave
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To: Mark was here

Hell, meet handbasket! It doesn’t matter now.


76 posted on 12/03/2008 12:35:53 PM PST by gathersnomoss (General George Patton had it right.)
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To: mnehrling
One of my uncle's Kaisers until a couple of years ago.

It was one of three he had. I sold two of them for him. One went to Canada and the other one is somewhere in NC up around Raleigh.

When I used some of my free Eartlink webspace to host the images for the auctions years ago, I got a warning from Earthlink saying that I had exceeded my bandwith by something like 10X. If I did it again, I was going to be turned off. I paid my bill every month. That was before I discovered Flickr and Smugmug.

I had more questions and compliments about those three old salvage cars than just about anything else I peddled on Ebay.

I also got a lot of nitpicks from supposed KF experts and some of them probably were too. I let the photos speak for themselves. Some people think they know every nut and bolt ever turned by Henry Kaiser.

77 posted on 12/03/2008 12:36:11 PM PST by wally_bert (Tactical Is Still Missing A Chair! Star Wreck In The Pirkinning......)
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To: NVDave
There’s nothing really “wrong” with GM’s books. It is their business plan.

You bet their business model is screwed up. What's worse, they all know it. So why the HECK don't they declare Chapter 11 and reorganize? That is literally the only course of action that will save the companies. I can see the union not wanting it. But management?? They'd rather let Congress nationalize their companies?? The only reason I can see the union and the managements colluding against their companies' best interests is because they don't dare let anyone get a look at the books.

78 posted on 12/03/2008 12:42:07 PM PST by mewzilla (In politics the middle way is none at all. John Adams)
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To: george76

I still want an HHR Panel SS.


79 posted on 12/03/2008 12:43:14 PM PST by Peter W. Kessler (Dirt is for racing... asphalt is for getting there.)
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To: george76
Photobucket
80 posted on 12/03/2008 12:43:26 PM PST by erman
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To: Moose4

Actually, several are. The Z4 Roadster is *only* made in the US, and they ship them back to Europe and the rest of the world.

Likewise, the X5 is only made in the US. The forthcoming X6 will also be a US-production-only car.


81 posted on 12/03/2008 12:52:00 PM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Perdogg

Why? That tax credit would have to be pretty huge to be worthwhile, and a tax credit of any amount is still a taxpayer-funded bailout.


82 posted on 12/03/2008 12:55:14 PM PST by MinnesotaLibertarian
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To: george76
Hey Democrats!

Stop giving the Union jerks my taxpayer dollars.

They are incompetent, useless and would starve to death if they lived in another country.

Give them NOTHING!!!!!!!!!!!!!

83 posted on 12/03/2008 12:56:02 PM PST by Prole (Please pray for the families of Chris and Channon. May God always watch over them.)
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To: george76

See ya GM and thank the UAW on the way out ...


84 posted on 12/03/2008 12:57:48 PM PST by Scythian
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To: Ed Condon

“Ford Fusion is a Mazda 6, that is assembled in Mexico. A Fine American car, yep.”

The foreign subs of GM and of Ford seem to make better cars, than the American designed models.

Come to think of it, the foreign subs seem to be better managed divisions, than the parent companies.

I read somewhere that Saab and Volvo had applied to the Swedish govt. for help.


85 posted on 12/03/2008 1:06:13 PM PST by truth_seeker
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To: Ed Condon

“Ford Fusion is a Mazda 6, that is assembled in Mexico. A Fine American car, yep.”

The foreign subs of GM and of Ford seem to make better cars, than the American designed models.

Come to think of it, the foreign subs seem to be better managed divisions, than the parent companies.

I read somewhere that Saab and Volvo had applied to the Swedish govt. for help.


86 posted on 12/03/2008 1:10:27 PM PST by truth_seeker
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To: george76

Hey GM, don’t WARN me about anything! Go under folks, maybe you’ll learn valuable lessons on economics, what the people want in vehicles and how to build ‘em better but if not, you’ll have to find new jobs, but not on my dime.

I say this full-well knowing that a bailout is coming to these #@#*!!#!.


87 posted on 12/03/2008 1:17:55 PM PST by brushcop (We remember SSG Harrison Brown, PVT Andrew Simmons B CO 2/69 3ID KIA Iraq OIF IV)
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To: george76

Let’s bail out the the White and Blue collar Plutocrats so they can continue as before and we can bail them out again. ENOUGH!!


88 posted on 12/03/2008 1:22:14 PM PST by Anti-Bubba182
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To: mewzilla

Hey, I completely agree with you. They should go “pre-packaged Chapter 11” before they’re out of cash and have NO room to negotiate anything that comes down out of the court.

The reason why the management doesn’t want it: Let us assume for a moment that you or I were the special master appointed by a court to clean up any one of the Big Three. ie, we’re some management consultant/MBA/CPA with the power of the court behind us - and we can make unilateral decisions on behalf of the creditors as long as our decisions improve the ability of the creditors to recover their money.

Can you think of any scenario where you or I don’t slash management’s ranks, strip them of their comp packages, perhaps sack the entire exec staff and bring in a breakup specialist to break the company up into components for sale?

Neither can they.


89 posted on 12/03/2008 1:35:30 PM PST by NVDave
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To: george76

Don’t t let he door hit ya where the good Lord split ya! Adapt & overcome jerkwads!


90 posted on 12/03/2008 1:50:10 PM PST by vpintheak (Like a muddied spring or a polluted well is a righteous man who gives way to the wicked. Prov. 25:26)
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To: george76

That’s probably not the best approach to take if they want to sell cars NOW. If I were in the market for a vehicle, I wouldn’t buy one from a corporation that says they’ll close their doors if fedgov doesn’t give them a bunch of taxpayer money.

How many dealerships could afford to do any factory warranty work if they had to eat the costs themselves?


91 posted on 12/03/2008 1:57:27 PM PST by savedbygrace (SECURE THE BORDERS FIRST (I'M YELLING ON PURPOSE))
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To: quadrant
He told her, “You don't expect them all to be right, do you?”

Last GM vehicle I owned was a 2001 Buick Regal GS. Overall, I liked the car, decent mileage, good power, looked nice.

Took it to the dealer for the check engine light (my scanner said it was the EGR, but didn't get more specific). Well, over $1,000 later, I had my car back.

I complained to the "service" rep I had that I didn't think this problem should have occurred on a car with less than 40,000 miles on it. I was one year over the 3 year warranty and 1,500 miles over the 36,000 limit at the time. She said, point blank: "Well, they are designed to fail."

I called Buick's national customer service line to report that, and let them know exactly why I'd never buy another Buick, or GM product again.

92 posted on 12/03/2008 2:21:35 PM PST by IYAS9YAS (Ever notice that Obama supporters chant "O-Bahm-AH" while McCain/Palin supporters chant "U-S-A".)
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To: IYAS9YAS
I bought a GM car. It was a lemon; kept it for less than a year and traded it in for a great Toyota. I took a financial bath, but it was worth it to be done with GM products forever.
93 posted on 12/03/2008 3:33:44 PM PST by quadrant (1o)
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To: george76

Dump the UNIONS!!!! That will buy GM at least a decade - and possibly a much longer life.

A bailout by the Feds will buy them a month or so...


94 posted on 12/03/2008 3:35:41 PM PST by TheBattman (Pray for our country....)
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To: ScottinVA
v

That would be me and my household... bought a new Impala back in April.

Has been an ok car so far - but some QC issues have already shown their faces.

Too bad GMAC can't go down in flames along with GM (GMAC isn't owned by GM, but by Cerberus - the owner of Chrysler...go figure). IF GM doesn't have to pay their bills (or honor the warranty), then I shouldn't have to make my payments on this car... right?

95 posted on 12/03/2008 3:41:15 PM PST by TheBattman (Pray for our country....)
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To: Redbob

No- there probably are not any assembly line workers making $70 an hour... but have you really checked out the contracts? My Father In Law worked for a time in a Chrysler assembly plant... He made VERY good money plus impressive benefits (many executives would blush), including paid time off to pursue education in ANY subject - with the schooling paid for too!

Some other pretty incredible “benefits” as well.... It is no wonder American cars sell for as much or more than their Jap/Korean equivalents.... with generally lower quality and resale value... Less of the price goes into quality control and design, and more goes into the pockets of union employees...

I don’t recall the last time I heard of a Nissan plant here in the US seeing threats of a strike for higher pay or benefits... nor have I heard any complaints from those employed in such plants... They are glad to have the jobs and benefits they are provided. Honest wage for an honest day’s work. What ever happened to that concept? OH yeah - that isn’t part of the Union dictionary...


96 posted on 12/03/2008 3:47:18 PM PST by TheBattman (Pray for our country....)
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To: george76

may not make it to New Year’s Day if Congress doesn’t approve a federal bailout for the beleaguered industry.
_____________________________
If they’ve already purchased NYE favors, napkins, plates and cups I’m willing to buy them at 5 cents on the dollar.


97 posted on 12/03/2008 3:47:38 PM PST by Joan Kerrey
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To: Perdogg

If I could get a tax-credit for buying a GM car, I would do it tomorrow.
__________________________
And you’ll do the upkeep and repairs where?


98 posted on 12/03/2008 3:48:47 PM PST by Joan Kerrey
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To: potlatch; LucyT; Candor7; jazusamo; PhilDragoo; Seadog Bytes; martin_fierro; Grampa Dave; ...

99 posted on 12/03/2008 4:09:13 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

Now the unions want to GM Walmart.


100 posted on 12/03/2008 4:34:42 PM PST by Grampa Dave (http://freedommarch.org/Home_Page.html)
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