Let Detroit Go Bankrupt, page 5
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reply posted on 19-11-2008 @ 07:43 PM by camain
I think its interesting that people speculate that the unions are crushing this industry. The fact is we as americans have a choice. We either become a Socialist nation, such as in Europe. Or we stay capitalist. Both are vetted with issues.

If we choose a Socialist path, Socialized medicine, Unions, Higher wages are par for the course. The problem you get is stagnation, loss of tech prowess, laziness in the nation as a whole. Yes it has its goods, but there are also its bads.

If we choose Capitalism, Let the Banks fails, let the auto industry fail, and any other industry fail. What happens? You have massive unemployment, this results in a loss of lifestyle, this creates a catastrophic collapse of the world.

The U.S. is the Bellwether of the world, where we go, so goes the rest of the sheep. This isn't because we are better, this is because for so long we have been the largest consumer.

This is the same issue that impacts the U.S. Instead of shutting down detroit, make all car manufacturers adhere to the same standards.

1.) All cars, and car parts made in the u.s.
2.) they must be unionized.
3.) there entire fleet of new vehicles must be non-gas, or hybrid by 2020.

What does this accomplish?

1.) cheap manufacturering goes away overseas. Therefore in order for the other car companies that are non u.s. to compete they must move operations to the u.s., Manufacturering plants are bought, domestic employement increases.

2.) with unionization, its irrelevant of what car company builds what model. You have the same union producing all models. Same pay, same benefits. You eliminate the union then as a variable of cost. It would be the same nationwide.

3.) you force innovation.

I think the problem that has been facing the u.s. is someones crack dream that there should be free trade. Free trade only benefits the bottom feeders, not wealthy nations.

If China wants to send 800 Billion of product to the U.S. then they need to take 800 billion of product. This is what free trade is, This means no imbalance. The imbalance is whats killing the u.s. economy right now.

Instead of bailing out Detroit, make trade fair and free, stop the deficits, and you bring the economy back to life. Yes, things get more expensive, but you know what, if you got a job, and a union, they'll make sure you have enough to afford it.

Right now the u.s. is stuck in a position, where we have all the markings of socialism, but non of the benefits. This just plain sucks. If we go socialism, we need to go all out. If not, we need protectionism to help our economy recover.

just my 2 cents, I by no means am an expert, but I have quarterbacked many a football game from my couch, and this my friends is no different. Peace, love, and all that.


Cheers



reply posted on 19-11-2008 @ 07:47 PM by jefwane
reply to post by Realtruth



I don't disagree with you much Realtruth, the government will eventually have to severely cut many outlays including defense, medicare, social security, and other large programs. No one wants to hear that but it's a mathematical certainty. I'm just waiting for a bond market event to happen now, especially since Obama mentioned "he wasn't going to worry about the deficit for the first year or two" in the word of Master Yoda "He will, he will".

I'm extremely pissed about the multi-trillion financial bailout, and don't have it in me to support another one. I might have been able to get behind this reluctantly had we not had recent futile attempts to save an industry from its own excesses on the front page of every financial publication.Guess what though if all 3 Detroit companies go bankrupt, cars will still be made in America, they will be toyotas, hondas, kias, hyundais, and even BMWs.

Why not let the auto industry BK and then reorganize with the .gov stepping in on National Security grounds if needed during the reorganization?


reply posted on 19-11-2008 @ 07:57 PM by Realtruth
reply to post by jefwane



The Big 3 will not go bankrupt. Here is my prediction, they will close ranks and kick all the a-holes out that are currently running the companies, this will be done by the workers actually personally stepping up to the plate and taking pay cuts. People will wake up and take more pride in their work ethics.

Detroit has many talented, trained skilled workers, actually generations of them all those years of production, schooling, trades are not a waste.

I also believe this will transpire on a nationwide level, because people are sick of the lazy fcks, that are bleeding the system. If someone doesn't perform they are history. I also don't believe that because someone has a higher level job they deserve more, if you put your time in you share equally in the corporate earnings, if the company losses so does the group as a whole.

I know there is a company here in the USA that runs this way and they are extremely profitable, and everyone takes pride in what they do, if someone does not perform it's by by. Can't remember the name right now, but i'll post it when it comes to me.


reply posted on 19-11-2008 @ 08:08 PM by Ex_MislTech
Originally posted by StargateSG7
Getting REALLY into the game here...it's going
to be IRRELEVANT whether or not Camaros are being made
or Priuses are being made...because they WILL NOT BE
made by a WHOM but rather made by a WHAT !!!

the REST OF YOU will be left to your own devices to
STARVE AND FIGHT IT OUT for the LEFTOVER SCRAPS.

DON'T YOU GET IT !!!!!

CAN'T YOU ALL SEE WHAT'S COMING ????

And the ONLY way to STOP THIS is to first Educate
yourselves and then force your way in POLITICALLY
and if that fails it will require an absolutely FULL-BLOWN
ARMED REVOLUTION AND REVOLT to make the Elites
see that you won't be pushed around!!!!


Won't be pushed around, ROFLMAO

It is far too late already.

They already have their plans for 90% of the population
and carved them in stone.

en.wikipedia.org...

The Russians took the hint and started preparing accordingly
by building a massive underground complex to house 60,000 ppl
and take 6 target on target nuke hits and survive.

www.globalsecurity.org...

The way the US will fall is the stealth cruise missile with
nuclear warhead with a 5,000 km range.

It is on Some of their bombers, most of their ships,
and most of their subs.

Its an upgraded variant of the KH-102 called the X-555:

www.globalsecurity.org...

When the time comes they let the Russians take the blame
for the war and act like they didn't coerce the Russians but
plenty has been going on to show the Russians are getting upset.

In early 2008 they moved to the new doctrine of preemptive
nuclear strike in regards to Europe and the US.

www.mnweekly.ru...

Putin and his replacement were targetted for Assassination
but managed to avoid it due to some good work from agents.

www.telegraph.co.uk...'foiled'.html

All this adds up to some nervous ppl in Moscow.

Putin has been known to trapse around tigers and even tranquilized
one that was about to attack someone.

Putin was the Russian Judo champ for some time, yet he makes
the statement that the US is a frightening monster...I wonder why?

www.bloomberg.com...

I think we are all being setup for a little miss direction.


reply posted on 19-11-2008 @ 08:14 PM by drock905
reply to post by Realtruth



That is basically what I was saying. Toyota/Nissan design a better product. GM Ford and Chrysler do not, they have poor quality control and poor designs. Its not the plant workers, it is the cost cutting measures that the big 3 have had to employ to try to compete with imports. That resluts in:

No real innovation
Cheap materials
Boring designs
No quality (bad panel gaps, squeaks and rattles, plastic interiors)

There was a time when most Americans would not have even considered an import. Those days are gone but the big 3 still think they exist and have rested on thier laurels for way too long. They cannot understand why americans have no pride in american cars.
The heads of these compaines come across as bean counters ( and not very good ones) It is 100 percent the fault of the Presidents and CEOs.

The car in America is an interesting product. People are passionate about them and care about them. For good or bad a car is a big deal with most people. Your not passionate about your stove or microwave, they just do a job. These compaines have lost the passion and how to understand what consumers want. They are paying the price.


reply posted on 19-11-2008 @ 08:14 PM by FX44rice
reply to post by Ex_MislTech

Sure they would or any Japanese manufacturer as well. To purchase the Big 3 infrastructure, plants, bldgs, etc., etc. at cents on the dollar would be a great deal for say Hyundai, Nissan etc. They dont buy the Big 3 Business model just assets.

bankrupty Ch 11 - reorganize management, restructure business plan, bankruptcy trustee manages creditor settlments, business continues to operate. Sell at negotiated price allowing creditors to recapture 25 to 50 cents on dollar.

Ch 7 liquidation of assests at cents on the dollar (all assets, production infrastructure, etc.)

White Knight - Cherry Motors of China offers 20 cents on the dollar right now. Forego most Bankruptcy legal costs, creditors accept discounted debt repayment. Cherry owns infrastructure of one of GM.



reply posted on 19-11-2008 @ 08:19 PM by Ex_MislTech
Originally posted by drock905
The main problem with the American auto industry is that they produce AWFUL products. It really is that simple, they have not made a proper car in 30 years. Consumers are not stupid. Why should they spend hard earned money on a inferior product when they could buy a "import" that was most likely built in the USA like toyota for an example.

GM Ford and Chrysler make cheap junky products and they make to many of them.

GM alone makes 86 vehicles spread out among the various brands. Every single one is crap. Instead of focusing on quality and not quanity they have lost any type of brand loyality. Do they need buick, saturn, GMC, or Pontiac? If they just had Chevy and Cadillac they wouldn't be forced to spread so much money around and end up with a water downed product.

Should they get a bailout? Yes. Do they deserve one? NO! At the moment the current heads of these companies are morons. They need to go ASAP. There needs to be a set of rules in place when they get the bailout.

The auto industry employs too many people to just disappear. It would be the death blow to the US economy. Think of the hundreds if not thousands of industries that would be effected outside of the car world. New car companies would not just spring up like some of you think. The logistics take decades to develop.

[edit on 19-11-2008 by drock905]


The trickle down lay off number currently stands at 3 million
expected to lose their jobs if GM, Ford, and Chrysler decided to
scrap their domestic names and debts.

They will most likely move the well heeled top dogs to the offshore
subsidiaries and dump the pensions and the debt, and say have
a nice day Ms. USA.

Recently GM built a huge plant in India, pretty good timing if you ask me.

It is damned if we do, damned if we don't, no matter the course
the US is well and truly screwed.


reply posted on 19-11-2008 @ 08:24 PM by FX44rice
reply to post by Realtruth


That would be a Grand Scenario. However, that is not how the business world, and contract law works.

The issue is they owe massive debt which they have no way of repaying. To all suppliers, vendors, lenders, private capital, etc., etc.

The issue is repayment of debt. There is only 2 basic options at this point (as no Private capital has shown any interest in lending to any Big 3 for some time, raising capital in any way has failed over the last year for GM):Only Bankruptcy or Bailout.


reply posted on 19-11-2008 @ 08:48 PM by pavil
reply to post by drock905




There needs to be a real change in the way the Big 3 operate.

Do the American workers at a Japanese plant in the U.S. make poor automobiles? Obviously it is something in the way the companies operate, not just the employees. Is the Camry a poorly made American Car?

I just don't get how the Big 3 have managed to stay so relatively uncompetitive?
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