Well, they would say that, wouldn’t they. I mean, you can’t very well say “no matter what kind of business plan Chrysler and GM present us, we’re not throwing these companies into Chapter 11,” not if you’re trying to appear tough on bailouts and the causes of bailouts. And The Detroit News is talking about politics, which is all about appearances.
“We’re going to need a restructuring of these companies. How that restructuring comes about is going to have to be determined,” said David Axelrod, a senior adviser to President Obama, said on NBC’s “Meet the Press.”
Axelrod’s comments came in response to questions about a Wall Street Journal report on Saturday that GM will offer two options when it files its federal restructuring plan on Tuesday: A continued infusion of federal aid to keep the company in business, or a government-financed bankruptcy . . .
“We need an auto industry in this country,” Axelrod said Sunday. “We have an interest in seeing the auto industry survive. But it’s going to take a real restructuring.”
We will soon see.
C11 is unlikely since that would drastically effect the UAW. The UAW’s far to rich contract is not going to be pared back with a C11, so the government will need to keep injecting billions into GM every few months.
” … government-financed bankruptcy … ”
Hmmm, a C11 filing with the feds playing debtor-in-possession banker. Wow, maybe GM management has been reading TTAC all these long months!
Does GM still build the military HMMWV’s? I know they build the motor. As an army grunt that is my only real concern anymore should GM falter…I walk enough without my vehicles having no source of parts. Of course, having a cummins or international diesel in my lethargic 1151’s might not be too bad.
The government already said they will not let either of these failures go under. More money coming, no matter what the plans look like, ala GMAC and their bid to become a bank.
Keep moving, folks, nothing new to see here. All talk, no action. All the “plan structures” and “union re-bargaining” and “negotiating with the bondholders” is nothing more than a show for those that are watching, which is a small portion of the country, mostly the midwest and southern transplant areas. The circus continues…
Just remember that they haven’t even appointed a “Car Czar” yet. Kick the can down the road.
Wasn’t it a few Month’s back that one of the TTAC staffers had a face too face meeting with Basil Hargrove the ex president of the CAW Union who said at the time that GM would go bankrupt! My how things change or not?
Yeah, Barack’s gonna dump another $2 Trillion into insolvent banks using the same throw it at the wall and see what sticks approach but he’s also going to immediately fail to “save” tens of thousands of automotive jobs. Sure.
I think Illinois, Missouri, Ohio, and Wisconsin will survive – but Michigan isn’t even salting the roads this winter, my family and friends have said. We have a hostage situation here, where Chrysler and GM are threatening to take Michigan down with them if the Feds don’t play softball.
What’s odd is the Detroit papers were running with the headline “GM sees CH11 as an option” for the last 16 hours or so.
Now they’ve totally removed any reference about Ch11 and instead re-worded it as “All options on the table”
I guess that’s more palatable to the advertisers.
MTYPEX
No road salt in Michigan?
Hmmm, silver lining to every cloud.
Colorado does not use it. Roads are passable-to-fine. They get plenty of snow.
Lets see TTAC do a story on the salt lobby.
More than half US Salt production goes onto roads, as I remember reading in “Salt” by Mark Kurlansky.
“Colorado does not use it. Roads are passable-to-fine. They get plenty of snow.”
They’re at a higher elevation with a much bigger sun load – not to mention higher average temperatures. So they get lots of snow that melts by the next day. Very different situation.
http://countrystudies.us/united-states/weather/colorado/denver.htm
http://countrystudies.us/united-states/weather/michigan/detroit.htm
Plenty of road salt in Michigan….
C11 is unlikely since that would drastically effect the UAW. The UAW’s far to rich contract is not going to be pared back with a C11, so the government will need to keep injecting billions into GM every few months.
Affect: a verb meaning “have an influence on”.
Effect: a noun meaning a result.
To: a preposition which begins a prepositional phrase or an infinitive.
Too: an adverb meaning “excessively” or “also.”
Road salt is normally a municipality/county thing.
I live in southeast Michigan. So I know that as soon as the big three collapse (which I know they will) this whole area is going to shit. So that is why I want to get out soon. But I am going to be stuck here for another two years.
local communities are suffering from reduced taxes from all the house foreclosures and can’t afford the salt/application
We are likely to get a lot of wet snow, unlike CO, which quickly packs into skating rinks like streets.
The infrastructure geniuses decades ago, decided to handle runoff through the sewer system, so sand may work on roads, but doesn’t work so great in the sewers. Doesn’t matter tho, the roads are breaking apart really bad this year. I may never get my 20’s back on the Daytona :(
“C11 is unlikely since that would drastically effect the UAW. The UAW’s far to rich contract is not going to be pared back with a C11, so the government will need to keep injecting billions into GM every few months”.
Somebody’s been drinking the Kool – aid.The banks get W. to beg congress for Hundreds of Billions,but the UAW (by extension) get reamed along with their CEO’s?
The UAW could work for free and it wouldn’t help. Why should the Auto Workers take any of the blame?
They buy their own products.
The UAW(represented worker companies) aren’t the only Car companies hurting:Toyota, Nissan,Honda,Mercedes,Citroen;on and on.The rare exceptions are those Korean automakers via a fluke in the exchange rate.95% or more of the car companies are bleeding, and it’s the UAW’s fault….PLEASE.
guitronics:
“The UAW could work for free and it wouldn’t help. Why should the Auto Workers take any of the blame?
They buy their own products.
The UAW(represented worker companies) aren’t the only Car companies hurting:Toyota, Nissan,Honda,Mercedes,Citroen;on and on.The rare exceptions are those Korean automakers via a fluke in the exchange rate.95% or more of the car companies are bleeding, and it’s the UAW’s fault….PLEASE.”
If the UAW has so little culpability for the cars they build, then why are they so handsomely paid, in terms of salary and benefits for what little input they claim to have, and why are they so unwilling to take one for the team when the stakes are allegedly so high?
Almost all of the world’s automakers are suffering to various degrees in this economy, yet it is the three manufacturers that have UAW representation of their workers that are hurting most. I don’t think that is just because they are American and America can’t build cars…
“If the UAW has so little culpability for the cars they build, then why are they so handsomely paid, in terms of salary and benefits for what little input they claim to have, and why are they so unwilling to take one for the team when the stakes are allegedly so high?
Almost all of the world’s automakers are suffering to various degrees in this economy, yet it is the three manufacturers that have UAW representation of their workers that are hurting most. I don’t think that is just because they are American and America can’t build cars…”
The Union Haters fail to see the reason that there was a union in the first place.The big 3 mistreated their workers,that’s why they formed a union. It’s all historical.The UAW workers aren’t as handsomely paid as you seem to think…the media has distorted the hourly rate by including retiree costs…the Big 3, especially GM, have huge numbers of retired employees.Do workers in the USA have the right to make good wages? Do you actually think that lowering the wages and benefits of the UAW will cause the price of US manufactured cars to come down?
The UAW already made historic benefit cuts in 2007….and they are continuing to make active workers’ pay and benefit cuts as I write this.
GM has steadily siphoned off money to other countries…Mexico makes pickups and commercial trucks, also Buick made.makes the Rendezvous there.And the Avalanche. GM makes Buicks in China for their market. I’ll post a list of links, if possible to show the world – wide [GLOBAL !] Auto Manufacturing crisis.
It’s a great time to be a Union Hater. The Big money men have all went away with the loot, and the rest of the world is left to pick the bones clean.
Here’s a few links that looks at the global economy, and Auto Manufacturers’ problems….only in America do we blame everything on the workers.
http://news.bbc.co.uk/2/hi/asia-pacific/7893924.stm
http://news.bbc.co.uk/2/hi/business/7893843.stm
h0ttp://news.bbc.co.uk/2/hi/business/7893965.stm
http://www.msnbc.msn.com/id/29179286/
http://news.bbc.co.uk/2/hi/business/7882913.stm
http://www.manufacturing.net/News-Japanese-Auto-Sales-Plummet-020209.aspx
http://www.eetimes.eu/automotive/212903055;jsessionid=CRSGGDTQHIEIUQSNDLSCKHA
http://www.automotive-business-review.com/article_news.asp?guid=81773E78-F3AA-4A3B-8AD0-3331534F8997&z=
http://www.just-auto.com/
http://www.irishtimes.com/newspaper/breaking/2009/0213/breaking51.htm
http://www.caradvice.com.au/1238/australian-car-manufacturers-scared-of-imports/