Hi joe2288,
The economic plight of the three automakers has been set. Economically they will go under, with or without bailout. it's just a case of sooner rather than later. Firstly they would enter in Chapter 11 and try and sort themselves out. But they will fail in the end. The credit isn't being offered to the consumer to buy the cars and also the confidence has been kicked out of the market.
Politically there are basically two options. They will be nationalized and the government will foot the complete bill, or as it was suggested on Fox News this morning, that the head of the union will be given a seat on the board of directors in exchange for the union to pull some strings and sacrifice some of the workforce and reduce pensions, wages and healthcare (this option stinks to high heaven).
The problem as I understood it is that because of the union wanting the most for its' members, the automakers pay pensions. The problem is that there are four pensioners for every worker now at GM. So GMs' overheads are enormous in relation to, say, Toyota which is a young company and hasn't had anybody retire yet. although this isn't the complete reason for the collapse, of course it could be considered one of the contributions for it.
But I feel that in the middle to long term, great changes will occur in the auto industry market, many will lose their jobs, but there will be opportunities in other areas, in smaller industries related to engineering and such like.
Best regards,
Steve
Quote:
Originally Posted by joe2288
ive been seeing all this stuff on the news about people not wanting to
bail out the 3 major auto companies im curious if any body has a good idea
of what will happen if we dont bail them out.
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