Imagine that! They low balled us. Who would ever have suspected they would do that? They seem so honest.
We just can't seem to learn, can we?
Posted on 02/17/2009 3:32:31 PM PST by Zakeet
General Motors Corp. and Chrysler LLC on Tuesday told the U.S. government it needs even more taxpayer money to survive than originally thought.
Meanwhile, the United Auto Workers union said it has reached a tentative agreement with Chrysler, GM and Ford Motor Co. on modifications to existing labor contracts. The agreement was announced by UAW President Ron Gettelfinger as Chrysler unveiled new job cuts as part of its restructuring.
Acknowledging that industry conditions are worse than expected when it made the case in December for a government bailout, Chrysler requested an additional $5 billion in government loans. It originally said it would need $3 billion more. The company had previously received $4 billion from the Treasury Department.
General Motors Corp.'s restructuring proposal says the company may need up to $30 billion in government loans as it implements a survival plan that includes cutting 47,000 jobs and closing five more U.S. factories.
GM submitted the dire plan to the Treasury Department on Tuesday to explain how the Detroit automaker will become viable and repay its loans. It says GM will try to borrow up to $16.6 billion more from the government, on top of the $13.4 billion it has already received.
With the restructuring, GM expects to start repaying the government in 2012 and fully pay off the loans by 2017.
GM says it has considered the option of bankruptcy, but the only credit available to finance a reorganization would be from the government, and it could cost as much as $100 billion.
The UAW said discussions are continuing regarding the union-run trust fund that will take on retiree health care expenses starting next year. Under terms of the government loans, both Chrysler and GM are required to reach concessions with the UAW and debt holders.
(Excerpt) Read more at foxnews.com ...
The auto companies need to go into bankruptcy and all union contracts need to be voided by the bankruptcy court. The bankruptcy court needs to allow the company to contract without union contracts.
If that does not solve the problem, then they need to go out of business for good.
No more PT Cruiser, Aspen or Durango .....
bailing Chrysler is unacceptable, they are privately held I am not into bailing out private equity groups.
You say that as if that was a bad thing.
These two patients are clearly brain dead...pull the plug.
How much did Cerberus (sp?) pay for Chrysler in the first place???
Is Ford stupid or smart on this one? I hope they don’t take a dime.
“The auto companies need to go into bankruptcy and all union contracts need to be voided by the bankruptcy court. The bankruptcy court needs to allow the company to contract without union contracts.
If that does not solve the problem, then they need to go out of business for good.”
It’s really that simple.
Chrysler and GM are going under.
I like how the news comes out after ‘Stimulus’ is signed into law.
Imagine That. Who woudda thunk it?
And I always thought Grand Theft Auto was a video game.
So is the GM bailout for the sake of the share holders? Why not just cut out the middle man and split the money between them and let the company go under? On the other hand, if the purpose of the bailout is to save the auto industry, it makes just as much sense to bail out Chrysler as GM.
I think I see a pattern here. It might be too early to be sure, it’s only gone on for 30 years, but . . .
Phase one, EMERGENCY! CRISIS! DISASTER! Only government can save us!
Phase two, thank heavens, it’s only going to take $xx billion
Phase three, they lied to us, it’s even worse than we thought
Phase four, turns out to need four times or more than thought
Phase five, problem persists but country much deeper in debt
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