It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

GM Asks For $30 Billion in Aid - 47,000 Jobs to be Eliminated!!

page: 1
12
<<   2  3 >>

log in

join
share:

posted on Feb, 17 2009 @ 06:24 PM
link   


DETROIT – General Motors Corp., presenting a dire outlook for the future, said Tuesday it may need $30 billion in total government financing to weather the economic downturn and would cut 47,000 jobs worldwide and shutter five more U.S. factories in a massive restructuring plan.

The automaker is already surviving on $13.4 billion in federal loans and said in a plan submitted to the Treasury Department that it would seek an additional $16.6 billion if economic conditions worsen, but it could achieve profitability in two years and fully repay its loans by 2017.

The U.S. automaker presented its turnaround plan to the Obama administration as it worked to win concessions from the United Auto Workers union and bondholders to dramatically resize the company. The UAW said it reached a tentative deal with GM, Chrysler LLC and Ford Motor Co. on contract changes but discussions were still under way about how the companies would fund union-run trust funds that will take over the companies' retiree health care obligations starting next year.

GM said it was making progress but had not yet achieved all the concessions from union workers, debt holders, dealers and suppliers that the Bush administration sough in the loan terms provided last December.

President Barack Obama's administration will review the plans from GM and Chrysler LLC but could pull the loans if they don't approve the turnaround plans by March 31. The review could be extended into April, but if the government demands the money back it would force the companies into bankruptcy.

GM predicted it could run out of money before the March deadline and said it is seeking the additional funding under a worst-case-scenario projection, as U.S. sales have plummeted to a 26-year low and auto sales have fallen in other parts of the world.

In December, GM said it might need a total of $18 billion in government financing but only got a commitment of $13.4 billion, including $4 billion that the automaker received Tuesday.

GM wants to receive an additional $2 billion in March and $2.6 billion in April. The company has a $4.5 billion revolving line of credit that must be refinanced in 2011 but now believes that private funding won't be available, so the automaker is asking the government to lend the money.

If market conditions deteriorate, GM says it may also need an additional $7.5 billion revolving line of credit to stay afloat, for a total potential request of $30 billion.

GM said it reviewed the potential costs of a bankruptcy filing, but said it was a poor option. If GM was forced into Chapter 11 reorganization proceedings, the company said the only credit available would be from the government, and the cost could reach as much as $100 billion.





Link to news



Wow. That's about all I can say right now. GM and Chrysler are goners/ Done for. Kaput. The state of California is officially broke. The state of Kansas can't afford to pay it's workers or fund it's schools.

The kaka has officially hit the fan folks. If you are still living in denial then I suggest you look at what is happening around you. May God help us all.



[edit on 2/17/09 by BlackOps719]




posted on Feb, 17 2009 @ 06:47 PM
link   
The kaka may have began spewing out of the electronic wind ocilator but some people are so used to the BS that comes from the goverment and MSM it will not hit them until they can no longer have bagels and coffee from the local Starbucks.

Dumbed down is being kind to most as most have no idea who VP Biden is.


47000 families will no longer have a source of income. 47000 mortgages will not get paid. 47000 car loans will not be paid and 47000 families will need to find an alternative way to feed and shelter themselves.

[edit on 17-2-2009 by whiteraven]



posted on Feb, 17 2009 @ 06:48 PM
link   
If the automakers would quit sitting on the advanced technology and build vehicles that dont run on fossil fuel, and make them affordable, that would revive them almost instantly.

No one is going to buy vehicles that use a commodity that is unstable for its fuel plus pay 40 grand for a vehicle that is 90 percent forign parts and 10 percent American label.


Cheers!!!!



posted on Feb, 17 2009 @ 06:49 PM
link   
reply to post by BlackOps719
 


Keeeeripes!


Well... that's another stone cast in the waters... here comes the ripples....



posted on Feb, 17 2009 @ 06:50 PM
link   
The only reason they are even floating above water right now is due to the $16 Billion they were already given by our generous governmental stimulus happy morons.

Eventually you just have to take a lame horse out back and shoot it.

[edit on 2/17/09 by BlackOps719]



posted on Feb, 17 2009 @ 06:52 PM
link   
reply to post by BlackOps719
 


If GM was a horse it would have been shot years ago.



posted on Feb, 17 2009 @ 06:55 PM
link   
reply to post by whiteraven
 




Can you imagine?


That is an entire mid sized US city out of a job with the swipe of a hand. 47,000 will damn near full up an NFL stadium. What we are going to see is unfathomable to most.



posted on Feb, 17 2009 @ 07:09 PM
link   
GM is still gonna lay off a bunch of people.

They want the money to fund their move to Brazil.



posted on Feb, 17 2009 @ 07:21 PM
link   
Hey look at the bright side. It only cost us $64,000 per job loss.
If we give them a couple of hundred billion, then they can file bankrupcy like they should have to begin with.



posted on Feb, 17 2009 @ 07:22 PM
link   
Yep, they better not give them anything. They want to wave American flags and pretend they want to save American jobs but in reality they just wanna jump ship and let their workers hang.

NO MORE BAILOUTS!



posted on Feb, 17 2009 @ 07:28 PM
link   
Ohh come people. All you doom sayers need to read your DNC Bible and get on your knees and say 20 hail Clintons for the blasphemy you speak. Don't you know the black Jesus is here to save (or en-slave) us all?



posted on Feb, 17 2009 @ 08:09 PM
link   
Ok now...all of those who knew that GM would just come crawling back begging for more money after the FIRST bailout, please raise you hands,


They even admitted that the first $16 Billion would only stem the inevitible collapse by about 2 months, and here we are!! How long will the new $30 Billion last them over? Just long enough for all of the top suits to grab fist fulls of cash and make a run for the nearest border.


It's like pooring money down an open well.



posted on Feb, 17 2009 @ 09:45 PM
link   
Kind of strange being GM just bought the biggest building in downtown Detroit to use as it's head quarters and also just built a few massive state of the art tech centers. All in the last couple of years.



posted on Feb, 17 2009 @ 11:32 PM
link   
LwSix




I agree in a lot of ways with what you are saying.


But if there ever was a company or an American industry that fits the "too big to fail" criteria wouldnt it have to be our auto industry?

Granted the Big 3 have been producing inferior vehicles for some time now, but can we allow the entire American auto making industry to implode? Think of the jobs lost, entire towns and cities going under like in Michigan and Ohio.

Not to mention the morale killer it would be to lose some of our biggest and oldest companies like Ford and Pontiac. These names have been around for over a century now and are staples in the very fabric of our country.

Could we really just let them die? I really dont know what other option there is considering throwing money at the problem seems to be doing nothing to help. When and how do you pull the plug?

It is horrifying, I never in a million years believed that I would be having this discussion in 2009. Just the thought of it alone is mind blowing and disheartening.



[edit on 2/17/09 by BlackOps719]



posted on Feb, 18 2009 @ 06:55 AM
link   

Originally posted by BlackOps719
It is horrifying, I never in a million years believed that I would be having this discussion in 2009. Just the thought of it alone is mind blowing and disheartening.


I couldn't agree more. The entire situation just feels surreal. I'm from Toronto and there are rumors (which some think are more than just rumor) that GM is planning to pull out of Canada altogether. That would devastate entire cities and communities in southern Ontario.

I feel like we're watching our entire way of life disintegrate before our eyes.

Unreal.



posted on Feb, 18 2009 @ 06:59 AM
link   
Isn't the 47,000 combined with 26,000 world wide in GM lay offs, or is it 47k+26k???

What I find, entertaining perhaps, is that this is the amount of jobs they'll shed before they have even gone bankrupt.

I'm getting pretty sick of governments telling everyone they can get money from the magic fairies at the bottom of the garden to fix everything.

It's not working, Jack!




posted on Feb, 18 2009 @ 07:24 AM
link   
reply to post by mattguy404
 


Hi mate, First, my thoughts are with you with all the fires you had down there, that was terrible. I grew up in Detroit, and live near Flint, MI, another auto town. I can tell you firsthand that these cities are flyblown corpses right now. Blocks of houses gone all over the city. In fact, crime is down a bit in some parts of these cities because there are so few people, and who is left, there is nothing to steal. Some people are beginning to grow big community gardens in the vacant lots though, and bartering has returned.



posted on Feb, 18 2009 @ 07:43 AM
link   
So people, this is big buisnesses true face showing itself..it was meant as a prfoit and money laundering scam so a select few ( CEO's) would never have to worry again in life. This is what runs our government.
I concur, if GM hadnt killed the electric car 11 years ago, and had shown the public they were goin green, so to speak, theyde have an advantage.Think about it..even the CEO must know his automobiles get bad mileage! Apparently, even he dosnt care.
But, going greener, perhaps also dosnt mean much of a money maker...cheaper and less aprts to install and build, people would eventually be laid off anyway, but at least GM would have survived by comparison. If they had taken that route, while the others still made fossil fuel cars, thiers a good chance, people would look at that, and invest in GM then.



posted on Feb, 18 2009 @ 07:44 AM
link   
And $30 billion is it? In aid? All it really sounds to me like, is its just enough money to sustain the plants GM has left, and the payoff for Mr. CEO himself.



posted on Feb, 18 2009 @ 07:55 AM
link   

Originally posted by 727eng
reply to post by mattguy404
 


Hi mate, First, my thoughts are with you with all the fires you had down there, that was terrible. I grew up in Detroit, and live near Flint, MI, another auto town. I can tell you firsthand that these cities are flyblown corpses right now. Blocks of houses gone all over the city. In fact, crime is down a bit in some parts of these cities because there are so few people, and who is left, there is nothing to steal. Some people are beginning to grow big community gardens in the vacant lots though, and bartering has returned.




Wow. That is amazing. If that is happening now when we have not really felt this downturn as an nation can you imagine what will happen after all is said and done.



new topics

top topics



 
12
<<   2  3 >>

log in

join