Prevent a GM Bankruptcy? It May Already Be Here

Please stop this auto bailout mess! Our Congress along with the Auto Execs have put on a show, but behind curtain it the lobbyist, who have put the fix in. No matter what the American votes for, the fix by the lobbyiest and politicans has been done. We are not a capitalistic country any longer. It is a sad day for America. It is easy to see the GM is gone, but not before we flush billions of dollars down a rat hole over the next few months.

Look, for those of you who are complaining that we've bailed out banks but not the auto makers, the bottom line reality is this. These 3 companies can not compete in a global market with their present legacy obligations, period. They must reorganize under bankrupcy law in order to survive. No one wants to see people lose their jobs and benefits but, this is the reality of the situation and all the complaining won't change a thing.

Seems like I recall years ago where the Auto's pitched in during war efforts to change the Auto's over into war machinery to help the nation. Guess there will not be any more wars now, so we can forget about needing help for those things.

Here in southern California illegal immigration taking jobs for lower wages and the unions don't care as long as those union dues are collected.

The American people have spoken! For the last 20 years they have flatly refused to buy GM products(even though they are as good or better than foreign)Yes, they have spoken, down with GM, down with Ford, down with anything American.We the middle class of America are demanding we once again slide into poverty and slavery. Guess what Americans, you are going to get your wish, and I hope as you are standing in line at the local soup kitchen, that those behind you don,t stampede.

They say that a union employee accounts for $2000.00 for every GM vehicle. Can somebody tell me what the price is, per vehicle, for all management (including CEO's bonuses)pay. Let's stop pointing fingers at the union and start putting blame on the real decision makers, that is management, ALL management.

If they need 4 billion to get through this year (less than one month)...how will 12 billion get them throug the next twelve months? Has anyone seen the cash flow that backs up what should be given to keep the company floating? My guess is they need more like 50 billion+ (GM alone) to get through and be ib good shape. Also, why wait to impliment the ideas in the plans they submitted...if these plans are workable why were they not been put in place yeasterday?

You have to BREAK the unions on this one. No room for sloppy made cars by overpaid slackers. The real car company reps came the first time to Washington in thier jets - now they are just trying to go along with public oppinion. A wolf in hybrid clothing! THEY MUST FAIL TO START OVER!

Ya know what? My give-a-damn is busted.

I hope Congress does the will of the people and doesn't give the automakers the bailout. What good would it do?? Their sales have hit bottom, the stock is worthless, we are in a recession....it would be throwing good money after bad. Plus, this would be good karma. Payback for all the people they've ripped off in car deals and at the service bays over the years!!!!!

If the Fed has to buy that which would cause a depression if it failed ? Gee, I'd say the Fed is going to take us right to the New Deal again ! This time ? Instead of building roads ? why ? we'll build more cars at the new gov. owned car factories ! lol what a mess, I'm glad life goes on forever and I'm part of it, otherwise this would seem like some real loss to stop and look at. Greedy adolescents have taken the nation state.

Odd, the Fed wants to own banks but not car companies. Why is that ? BEcause we all wake up and realize we're living in China if they do.

If my business fails for any reason, I am not able to go to congress and expet a bailout. I am expected to use the tools provided within our ystem to file for protection while I reorganize. Congress needs to take the reorganization plans they are submitted, hand them to a bankruptcy judge, and let the system work. It has been proven to work before and it will work again. Taxpayers cannot bear the burdens of any more bailouts.

Hey Brian, if you are so smart at knowing what a major vertically integrated worldwide car manufacturing company should be doing why are writing articles? You should be getting those big bucks buddy. You have no clue what it takes. Wake up folks letting companies fail hurts far more little guys than the big wigs. People buy bonds and stocks in these American companies and depend on them. The market is a great equalizer but get real this is not normal market forces.

Only if you have ever worked inside a 'Big 3' plant could you possibly ever appreciate the insanity of a thought that would propose to prop up and subsidize any plant with a UAW presence. If you want to see waste, if you want to see management give-aways gone mad, if you want to see card playing, sleeping on the job, outright defiance of any output expectation, spend a day in one of these plants. And, at $50, $60, ... $70 and hour. Then look also at the stupidity, the arrogance, the lost-from-reality conduct of the managers. Rescue these bums as they lounge in their reprobate featherbeds?? By politicians, the proposals are only about votes from the UAW. Let these miscreants fail; and, if the politicians send more money their way, boycott any dealer who would attempt to sell a GM, Ford or Chrysler product. Don't buy into this larceny.

Why are our elected officials even giving councel to these people. I was a GM fan for a long time, now not so much. I bought a VW Jetta TDI, yes a "DIESEL." Why cause the folks at GM, Ford, and Chrysler know what I want. I want a car that gets good MPG and longevity. The last time I went into a/an so called American made dealer ship was a couple weeks ago just to see what they had on the sticker, to see if GM was serious. Not to mention I bought a Saturn last year and to my surprise I was very unhappy with it. Maybe the first thing the Big Three should do is look to the consumer directly that has purchased their product and see what they think. Me, I am looking else where for reliability and MPG. 1) Get rid of the UAW, contract the individual not an organization. 2) Put AMERICAN'S to work not a foreign nation that can't afford the products made there. 3) This one is for our politicians, giving money away only weakens our dollars that much more and further weakens the economy.

I agree that the Detroit auto makers have let the unions destroy their business and bankruptcy is the only option. You can not have that much of a burdon on the company and expect it to survive during difficult times and with foreign pressure here in this country that are not loaded with all that pork. Let the judge reorganize the companies without union loading the wagon.

A couple of observations: 1) Right on... they are dead but haven't fallen over yet. US automakers have been pretty arrogant about their business. Rather than being market driven they have always thought they could drive the market yet when the Japanese influx proved them wrong they ignored it. A radio interview last week with a GM executive blamed Americans for not buying their cars. He said, "These are the best automobiles made today..." Sorry guys, wake up and smell the dust on your inventories. People just don't like what you are making anymore. 2) Bankruptcy is needed for market adjustment. If one of the BIG 3 fails the others will strengthen - and so will other American made cars like Toyota and Honda. Global man. 3) Unions have to go. They are no longer needed and the proof is in the Honda, Toyota, and BMW plants in the south. Unions are the anchor the economy is dragging. Learn from the successes of your competition, Detroit.

Lou, the problem is that if you don't bail out banks, at least to the point to save them from complete failure, people's money will just disappear. That was what made the great depression so bad. So as for priorities, why should we bail out part of an industry that has been crippled by its union and fails to make desirable cars? I'd rather make sure people don't lose their money (minus the 100K now 250K insured) in their accounts, than make sure GM can continue to make cars I don't want to buy while overpaying its work force. GM needs to prove it can be a solvent business before it should get 1 cent from the tax payers. But there's the catch 22, if its a solvent business, why would it need a bail out?

I thoght congress was smarter than to fault the Auto's for using company aircraft. There are 4,200 airports in the US not served by the airlines. As a retired 33 year pilot, I know first handle that the aviation deptment is a plus for a large corporation. However to continue I wonder how many Washington people are using airlines, and how many small jets the Governmewnt has?

All our lives we have paid too much for cars because of the greedy legal monopoly on labor called "unions". Asking us now to pay more taxes so overpaid retirees can continue to get unlimited viagra without a copay is too much. If the union workers were paid the average USA worker's pay and benefits for their skills and education then there would not be a problem. All the threats of millions of jobs lost is nonsense. The same customers will buy the same number of cars and trucks with the same number of motors, windshields and brakes - just not from the "Big Union 3".

The lame argument of GM CEO is that the bankruptcy option cannot be considered because no one would buy a new car from a company whose warranty protection is in question. Rather than a bailout, the government should consider providing a warranty guarantee program for all 3 companies, on the condition they file bankruptcy and effect a total restructuring. It would be far less costly than throwing $30+ billion of taxpayer dollars into the sinkhole they've created for themselves. They'd finally figure out how to build high-quality and efficient cars at affordable prices; they'd have retooled companies able to operate cost-effectively; and over time they may be able to regain some of the market share they blew away.

What a joke….Bailout for banking but not manufacturing??? Banking produces no tangible goods and is a parasitic business model. Where are our priorities??? ---------------------------- While I am not happy with the bailouts of the financial institutes, if we do not re-establish a viable financial system, NO businesses will able to function. Nancy Pelosi & Harry Reid need to stop worrying about how to hand out anymore money! Their #1 task is to establish oversight on the $700B package. That money is getting ahnded out all over, and NO ONE has any idea about the oversight issue. PELOSI\REID ASLEEP AT THE WHEEL AGAIN!!!! the auto makers A. Going Chap 11 does NOT mean the loss of some astronomical jobs. This is just BS by these high level execs who do not want to leave. These idiots saw the racky shoreline and steered their companies directly at the rocks! Why should ANYONE beleive they can solve this mess. B. They will not be viable without MASSIVE changes that will take time to implement and take effect! They are going to be back in just a few months asking for more! There is nothing they can do in the next 3 - 4 months to all of a sudden become cash positive. C. Even IF all 3 crash & burn, some business entity will fill the void. A new American company or an expended foreign company willing to hire on the exeperienced American work force. D. Sooner or later, all businesses evolve or fail.

Please read the report that Chrysler submitted to find out why taking out bankruptcy (BK)is not an option. The CEO summed it up better than the other automakers about why it isn't an option and the mispreceptions about BK. If they start down that path, based on the current legal restictions, they will not come out of it. No restructuring, no modifications of labor contract, etc. Do people realize that if these guys go into BK, the American public, you and me, are responsible to pay union retiree benefits? This cost alone is a greater than the loans and will not will not be paid back.

I did't hear much about AIG,FANNIE and FREDDIE or CITI. But an American Manufactor going under, "thats's OK". Let's ship out all the jobs from America and keep the bankers, lawyers and wall street people the contribute so much.