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View Diary: Tales from Auto Industry Bailout's Ground Zero (288 comments)

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  •  And who's going to buy them? (3+ / 0-)
    Recommended by:
    Brian Bell, Stranded Wind, chrome327

    All those tiny companies are going to be 100% losses.

    Because if nobody can get credit to operate, and nobody can get credit to buy a car, nobody will get credit to buy a failed business.

    Let alone assets.

    •  yup, massive downsizing (2+ / 0-)
      Recommended by:
      Brian Bell, Rayne

       If they put $15B into the Big Three they need at least that much for a DIP facility specifically meant for their component suppliers. If they can't get it done for the largest in a timely fashion I don't imagine they'll do a good job for the little guys.

      FYI this is the negotiating phase - if they had to do it they would have. They're giving Ford & G.M. a haircut right  now.

      •  And that's complete bullshit, must say (4+ / 0-)

        all the little suppliers are in a complete freak-out right now.

        I'm living it, what with my spouse working in that industry.

        There are going to be nasty casualties of this little haircut.

        •  most of them are toast (0+ / 0-)

          Hate to say it but without orders and without financing to get through from no orders to some sort of restart we'll lose a lot more of them than is needed - more consolidation of power.

          •  This supplier has orders (2+ / 0-)
            Recommended by:
            Stranded Wind, chrome327

            just as an example -- but they have NO assurance they will get paid.

            What do they do?  accept the order already whittled down to razor thin margins and then get screwed by the bankruptcy court and forced to accept payment at some unknown loss on the goods?

            Or refuse the order and lay people off right now?

            We're going to lose people with institutional knowledge and intellectual property; some of these people are going to give up and retire or change careers because of this crap.  

            •  I changed (0+ / 0-)

              I was deathly ill last year, lost my business, and I chose to do a career change, too - everything else was a mess so I figured it was the right time.

               And it's paying off. It's been a long, hard road, but tomorrow I take a four digit check out of an envelope, scoot to the bank, then get on a train to go talk about selling a company I'm building.

               Those with mechanical skills are going to be in demand - lots of wind turbines to be built in the coming years, lots of concentrated solar, etc.

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