GM + Chrysler = Public ownership

So, how does it feel as a taxpayer to have the potential to be a part owner of a GM/Chrysler shotgun wedding?

The government funding would include roughly $3 billion in exchange for preferred stock in a merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly.

The rrrrrrrrrrrrrrrrrest of the story . . .

Originally posted by GoalPoster
So, how does it feel as a taxpayer to have the potential to be a part owner of a GM/Chrysler shotgun wedding?

It feels seriously bad.

Public ownership of automakers with exceptionally poor leadership, poor products and lousy MPG? The treasury should pass on this "deal"

The question in the broader scope, at least to me, is Where does this end . . . who decides who gets bailed out and who doesn't?.

It stands to reason that any industrial interest that is finding it tough sledding in these times could legitimately go to the treasury with their hand out and expect somthing to tide them over or at least pay their executives' bonuses until things straighten out.

That, in and of itself, is scary.

The other thing is how long before the US is dragged in front of the WTO with complaints that they are violating their own 'free trade' agreements by 'subsidizing' certain sectors of the economy and making that global 'playing field' slanted?

It might not be such a bad idea... GM spent millions developing the fuel cell they have working prototypes... if the government steps in they could force them to release a production model sooner then planed...

of course it would also mean selling my Ram 250 as GM said they only want to keep jeep, some mini vans and the PT cruiser line up out of all the Chrysler products the rest will simply fade away...

[edit on 28-10-2008 by DaddyBare]

GM+Chrysler=Volkswagon, circa 1938.

Now that would have been a title!

If it is what you describe, I, as shareholder, would like to propose a few things for the new company.

1. Ditch the manufacturer of the plastics in your automobiles. Use the Toyota/Honda/Lexus/Acura manufacturer.

2. Ditch all of the extraneous body cladding, especially throughout the Pontiac.

3. Make a real effort to make small, economical diesels (cars and small trucks) using newer technologies, even if you have to license them. Make sure that your little diesels can run on bio-diesel. I haven't checked recently, but there was a time that a gallon of Canola oil at Costco was a dollar cheaper than a gallon of diesel, and the same as a gallon of gas. I think that ws at its peak though...

4. Don't put all the eggs in the hybrid/gasoline basket. A hybrid biodiesel hatchback wagon would sell well if the cost was right.... seriously.

5. Don't merge your platforms too much. Competition breeds innovation. Nobody wants a Camaro with a Mopar engine, or a Dodge truck with a Chevy 350... Well, I shouldn't say 'nobody', but there are buyers who are brand loyal.

6. Don't do it. Don't merge. Both your companies are allowing your psyches to fall prey to the deflationary cycle. Wouldn't it be better in the long run if you did what you had to do to survive as the companies you are now. Why would Chrysler be a better fit for GM than it was for Mercedes? Location? Maybe...

Do what you have to I guess,
DocMoreau

Sweet, now we have a "people's car"...just like they had in Germany...
I'd rather not, thnkyouverymuch...ugh.

The bad news is, that when you have a corrupted government and a new appointed corrupted individual making corporate related decisions to serve its pimps you know that the winner will never be the American tax payer.

The truth about the bail out is nothing but a scam.

Paulson is just serving his pimps as usual with new and unchallenged powers.

The bail out was to help banks write out the morgage defaults so they can borrow again, but guess what? that was just what it was sold to the public.

What he is doing is choosing among his pimps in the banking system to give away the tax payer money so big banks can now buy smaller banks consolidating the power of the financial system.

The mortgage write outs has not even touched yet and the mortgage problems is still revolving as we speak, top that with the credit freeze and we have nothing but a scam on our hands.

[edit on 28-10-2008 by marg6043]

Did this thread die out because the merger died?

Or is the merger still on, but waiting for some cash/credit to make the deal?

I am confused.
DocMoreau

Originally posted by DocMoreau
Did this thread die out because the merger died?

Or is the merger still on, but waiting for some cash/credit to make the deal?

I am confused.
DocMoreau

Merger is still on, but the US Government has refused to fund it.

"Report: GM Turned down by Government

by CalculatedRisk

From the NY Times: U.S. Rejects G.M.’s Call for Help in a Merger

The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler ... the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.
...

While G.M. and Chrysler continue to talk, no deal is expected until the government clarifies its role, if any."

---

This is going to be a slaughter. Can you IMAGINE being a Chrysler or GM dealer today?

200,000 people at a minimum are going to get tossed.

JK

reply to post by leo123


200k + .. GM says only 90k will loose their jobs, but in fact the hit will go so far into the auto industry and suppliers that easily 200k+ could be without work.. not to mention the many brands that are supposed to be eliminated will add to the amount of people without work..

I suppose if both fail it would also put many more out of work.. meh..

Chrysler is privately owned, and I am not sure who's going to buy who or if it will be a merger..

I am glad the US decided, at this point, not to fund it.

I know I will never buy a car from an "American" auto company..

By Japanese or Korean, they continue to build plants in America, while American auto makers make plants in Mexico.

Originally posted by Rockpuck
reply to post by leo123

 

200k + .. GM says only 90k will loose their jobs, but in fact the hit will go so far into the auto industry and suppliers that easily 200k+ could be without work.. not to mention the many brands that are supposed to be eliminated will add to the amount of people without work..

I suppose if both fail it would also put many more out of work.. meh..

Chrysler is privately owned, and I am not sure who's going to buy who or if it will be a merger..

I am glad the US decided, at this point, not to fund it.

I know I will never buy a car from an "American" auto company..

By Japanese or Korean, they continue to build plants in America, while American auto makers make plants in Mexico.

Yes, I agree. 200,000 jobs lost should be considered a floor, not a maximum.

JK

Toyota is buying Ford too....

The new company will be called FoMoCo!!!

Originally posted by anonymousATS

It feels seriously bad.

Public ownership of automakers with exceptionally poor leadership, poor products and lousy MPG? The treasury should pass on this "deal"

Poor milage?

I just bought a brand new 2007 Pontiac G6 GT coupe back in Feb 08. It's got the 3.5 V6 and I've been getting 30 - 35 MPG. Their products not poor!

Also, it's my understanding that Bush refused them the finnancing for the merger.



[edit on 4-11-2008 by LiquidMirage]

WHAT? .. lol .. I knew that was wrong from the getgo .. most likely because you bought an "American" car which love to lie about their MPG.

In fact, Pontiac's official statement is 33mpgs highway.

And I am thinking wow, that's almost as good as my little Scion XD ..

Every other source? .. 17-25 on average ..