Thread: Dodd Says Auto Bailout Lacks Votes in Senate

Originally Posted by anonnymous

Once again, you have an idea that would maybe work in a buyers market but given the state of consumer spending it simply would not work. No matter how you package a deal if there are no buyers then there will be no company. Also, any prudent business man would not dare take on those pesky union contracts while basically having a start up.

Look, the big three have allowed themselves to get too big and their bureaucracies too wide within their company. If they want to survive, much like our government, they need to cut the size of their company back down to a manageable system. That means eliminating jobs, perks and salaries, factories, models, and get this union contracts. Of course there is a great deal more that would have to be done as well.

They have had companies look them over and no deals were made because of how complex the company has become. The left hand does not know what the right hand is doing. They are so strung out that it would be nearly impossible to purchase a division without having to buy up or into other companies that provide the support for the manufacturing operation. Simple stuff really, like parts, there is no industry standard say on engines and transmissions compared to say the electronics industry were parts are pretty much everywhere at competitive prices. The automobile industry is too specialized.

Good idea though and is a possibility with hundreds of other companies.

Nah - look, GM, is not just GM. They have a "bank" underneath them, called GMAC. That's the consumer credit arm, but it's ALSO involved in venture capital. So now Paulson, is tellin' these clowns he "might" fund the bank part but not the car-making part. He's still hem-haw-hem-haw, and I mean, the longer they wait, the less likely it is.

So, there's your spinoff. It's almost "natural". It was made to be.

Originally Posted by nonsqtr

Nah - look, GM, is not just GM. They have a "bank" underneath them, called GMAC. That's the consumer credit arm, but it's ALSO involved in venture capital. So now Paulson, is tellin' these clowns he "might" fund the bank part but not the car-making part. He's still hem-haw-hem-haw, and I mean, the longer they wait, the less likely it is.

So, there's your spinoff. It's almost "natural". It was made to be.

Oh yea!! who you going to find, other than the government, to take over not a bank, but a commercial paper company with the economy in a tailspin? Had it not been for GMAC caring the notes on GM's car sales they would have been gone already.

The only possible scenario is if GMAC were allowed to become a bank and then qualify for government handouts. Then it would be very likely to be bought up by one of the big banks only if they have some other collateral than used cars or mortgages near default.

Honestly, would you buy a company were you would conceivably not make a profit in the first 5 years and run the risk of losing most if not all of you collateral?

Originally Posted by Ausinus

The cars being built in the South are a piece of shit; foreign cars are far superior.

Actually they recieve so of the highest quality ratings, being many many "foreign" models at 60% of the price.