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View Diary: Save 300,000 Jobs--Boycott Chase [Update] (315 comments)

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  •  Yes lets do that.... (5+ / 0-)

    and lets restructure Chrysler without bankruptcy. It's really pretty simple... save jobs, maintain union contracts, and force banks who are responsible for a large portion of the current misery that the US auto industry is in to accept some of the pain.

    •  Oh, I'd love to hear this... (3+ / 0-)
      Recommended by:
      Sparhawk, theran, Cardinal96

      ...and force banks who are responsible for a large portion of the current misery that the US auto industry...

      Please explain how this is the banks' fault, aside from the fact that they actually even lent money to a company as disasterous as Chrysler.

      •  Certainly true for GM (11+ / 0-)

        GM was about 1 year into a turnaround plan, with plans to scrap brands and dealers. And the VEBA plan and 2-tier wage structure was going to get the legacy costs off books in two years time.

        THe August gas prices were pretty devastating. But it was the complete freezing of credit in September that really started all teh car companies hemorrhaging cash. You can't run a car company without credit, whether your Toyota or Chrysler or Ford.

        You may have noticed that even Toyota had a loss last year, right? So it's not just GM and Chrysler that are hurting.

        This is the way democracy ends Not with a bomb But with a gavel -Max Baucus

        by emptywheel on Wed Apr 08, 2009 at 09:37:35 AM PDT

        [ Parent ]

        •  GM's problems (3+ / 0-)
          Recommended by:
          Sparhawk, Cardinal96, tari

          GM's problems were years in the making.  Here is the cover story to the February 20, 2006 issue of Fortune:

          In character, today's GM is a weird and painfully scarred combination of businesses. It is a car company doing poorly, and it is an insurance company engulfed by obligations way beyond its ability to pay. Such an enterprise probably cannot escape bankruptcy.

          These problems far, far predated the current recession, or the gas price volatility, or anything else this decade.

          •  Wonderful!! (5+ / 0-)

            You use a 2006 article to refute my point about GM's actions starting in 2007!!

            ALl of which is you way of explaining why TOyota is hurting too!!

            This is the way democracy ends Not with a bomb But with a gavel -Max Baucus

            by emptywheel on Wed Apr 08, 2009 at 10:32:44 AM PDT

            [ Parent ]

            •  GM is always restructuring (3+ / 0-)
              Recommended by:
              Sparhawk, Cardinal96, emilysdad

              That's what they do.  They have been restructuring for thirty years, and every time they have a new plan.  They make a new deal with the UAW, they walk around saying this time everything will be different, and they go back to making all of the mistakes they always made.

              GM has made promises far, far beyond its ability to keep.  It has signed up too many dealers.  It has offered its retirees, white collar workers, and blue collar workers benefits it cannot deliver.  It has pledged bond payments it cannot make.

              The company has $188bn of liabilities (accepting for argument their ambitious 8.5% pension plan growth rate) and growing against roughly $110bn of assets.  Their financial situation has absolutely nothing in common with Toyota, which has $100bn of positive equity and one year of negative operating income in its entire history.

              •  I just love MBAs! (2+ / 0-)
                Recommended by:
                alisonc, jds1978

                When I read their posts on threads, it makes me wonder if they're Cylon skin jobs.

                There are things more important in life than profits.

                And don't try selling us any more on the idea that "the market" should/must decree who lives and dies in this world.

                Are you the change or not?

                by goinsouth on Wed Apr 08, 2009 at 10:52:58 AM PDT

                [ Parent ]

              •  GM is nothing else than a ponzi scheme (0+ / 0-)

                the Bernie Madoff under car makers. They kept filling their holes by acquiring more and more foreign car makers, accumulating more debt without solving any of the underlying problems. A huge bubble that has to burst at some point.

            •  And... (0+ / 0-)

              is Toyota not getting gov't funding from Japan right now? Pretty much the same as most other car companies are getting from their home gov'ts?

              "...I'm hovering like a fly, waiting for the windshield on the freeway."

              by soundchaser on Wed Apr 08, 2009 at 04:32:57 PM PDT

              [ Parent ]

      •  The credit market froze up! (5+ / 0-)

        Where have you been living for the past 12 months? I work for a company that made a HUGE profit last year and they had to do some serious hussling even to be able to cover their day to day operating expenses.

        Chrysler and GM had a large amount of cash on hand but not enough to keep going with absolutely no short term credit available..

        Or do you think people not buying a lot of Jeeps and Hummers for 12 months is enough alone to sink the US auto industry?

        Notice I said CURRENT misery... no the banks are no responsible for GM and Chysler and their incredibly short sited plan to double down on gas guzzlers... but they are responsible for them being on the virge of bankruptcy RIGHT NOW.

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