Oh the potential ripple effects are enormous, but they do still have a lot of cash on hand (problem is they are burning through it fast):
"...big news also came out of General Motors and Ford. Two of the country’s largest automakers have reported sharp losses – General Motors posted a $2.5 billion quarterly loss while Ford reported $129 million loss. Both companies have been forced to seek government aid as they are quickly running out of cash. Ford burned through $7.7 billion, leaving them with only $18.9 billion in available cash while General Motors used up $6.9 billion, leaving them with only $16.2 billion in cash. GM even declared that they would be forced bankruptcy next year if they did not receive any government intervention. Job cuts are expected at both automakers as they try to cut costs and preserve cash. GM employs approximately 263k workers while Ford employs 246k workers. If they were allowed to fail, it would lead to another half million job losses."
If one of the big 2 auto companies were to fail (cease production and operations) it would add about 2% to the overall unemployment numbers, expected to peak at between 8-10% sometime near the end of 2009.
"...big news also came out of General Motors and Ford. Two of the country’s largest automakers have reported sharp losses – General Motors posted a $2.5 billion quarterly loss while Ford reported $129 million loss. Both companies have been forced to seek government aid as they are quickly running out of cash. Ford burned through $7.7 billion, leaving them with only $18.9 billion in available cash while General Motors used up $6.9 billion, leaving them with only $16.2 billion in cash. GM even declared that they would be forced bankruptcy next year if they did not receive any government intervention. Job cuts are expected at both automakers as they try to cut costs and preserve cash. GM employs approximately 263k workers while Ford employs 246k workers. If they were allowed to fail, it would lead to another half million job losses."
If one of the big 2 auto companies were to fail (cease production and operations) it would add about 2% to the overall unemployment numbers, expected to peak at between 8-10% sometime near the end of 2009.
pointless endeavor and a waste of money
auto makers been building to this day for a long time throwing government money at the problem ain't gonna fix it
we just fell behind the curve in comparison to rest of the world
all they gonna do is throw more money at them to buy them more time.....into a black hole
yeah lets spend money so they don't have to cut every job (if GM gets the money to take on chrysler who they want for cash they will still axe tons of jobs) and they can continue to lose money on every car they make sounds like a great investment for america
if obama and company are dead set on saving failing industries than he's just gonna make things worse
we need to man up and cut ties with the past and failing businesses and start investing in our future......and the longer we wait to do so the longer our pain is gonna last
auto makers been building to this day for a long time throwing government money at the problem ain't gonna fix it
we just fell behind the curve in comparison to rest of the world
all they gonna do is throw more money at them to buy them more time.....into a black hole
yeah lets spend money so they don't have to cut every job (if GM gets the money to take on chrysler who they want for cash they will still axe tons of jobs) and they can continue to lose money on every car they make sounds like a great investment for america
if obama and company are dead set on saving failing industries than he's just gonna make things worse
we need to man up and cut ties with the past and failing businesses and start investing in our future......and the longer we wait to do so the longer our pain is gonna last
Complete and Total Nonsense..
If the unions in the country want to make thievery deals that incompetant management is all too willing to go along with (knowing they got corrupt politicans to save the day), they all deserve to go under! The auto industry MUST FAIL, I don't care what the ripple effect is! Obama coming to the rescue is exactly why I didn't want this retard in the office in the first place! Obama already has proven in less than 1 week that he has less common sense than Bush.
Our economy needs REAL PAIN before it'll ever start moving forward again.
we are headed there no matter what.. the only survival for the big 3 or (2 post merger) is a bankruptcy restructuring.. The companies have to crack the unions its the only way they survive period.. So the gov should not give them another 40 billion to burn they should say do what is coming no matter what.. even with the 40 billion.. GO BK.. bust the greedy fucking UAW or get rid of them all together and get back to reasonable costs.
MLM you are on the money. To bad other people cant figure out that the government and the unions caused this and the UAW supported BO and is now asking for it back in return for the support. Unreal. EVERYONE NEEDS TO WAKE UP AND REALIZE THAT GOVERNMENT IS THE PROBLEM AND NOT THE SOLUTION.
I don't think they should be given a dime, but definitely....
They must be forced to file Chapter 11 bankruptcy. Shareholders must be wiped out. Bond holders must be wiped out. Union contracts must be void. Management needs to be given the boot. Only then, after restructuring, should the government consider giving them one penny.
Anything else is tax payer money incinerated into a bottomless liability, like AIG; makes me sick.
They must be forced to file Chapter 11 bankruptcy. Shareholders must be wiped out. Bond holders must be wiped out. Union contracts must be void. Management needs to be given the boot. Only then, after restructuring, should the government consider giving them one penny.
Anything else is tax payer money incinerated into a bottomless liability, like AIG; makes me sick.
3 million plus unemployed...:shocked:
BTw... i have to say i am so very much against a bail out of all 3. Govt should let one fall! And whichever they prop up must be under strict instructions and accept strict government rules on not churning out the garbage they have been putting on the streets. (of course restructure employee payouts as well)
But detriot failed to compete in the global market and that is a large reason why they are suffering while Kia and Hyundai are ripping huge profits the world over!
guessing F goes 
up or GM/chrysler (merger to come after government gives GM the money) gobbles um up down the road and we just have one car company left in the US will only be one entity left either way
F and chrysler have some cash to burn through for a few years.....GM needs the money to gain chrysler's cash......and once GM/chrysler merge they'll downsize, slash jobs, etc......
whatever happens waste of money and only gonna prolong the depression
gonna do the same damn shit we did in the 30s....try to prop up shit that just needs to be allowed to fail rather than take your lumpings hard near term lick your wounds and move on to the future
government can't "save" companies they get into a position where the last resort of government money is their only out because the product they make is no longer a viable profitable product in the global marketplace.....if it was private equity would be injecting money into the auto makers....not running away from it
up or GM/chrysler (merger to come after government gives GM the money) gobbles um up down the road and we just have one car company left in the US will only be one entity left either wayF and chrysler have some cash to burn through for a few years.....GM needs the money to gain chrysler's cash......and once GM/chrysler merge they'll downsize, slash jobs, etc......
whatever happens waste of money and only gonna prolong the depression
gonna do the same damn shit we did in the 30s....try to prop up shit that just needs to be allowed to fail rather than take your lumpings hard near term lick your wounds and move on to the future
government can't "save" companies they get into a position where the last resort of government money is their only out because the product they make is no longer a viable profitable product in the global marketplace.....if it was private equity would be injecting money into the auto makers....not running away from it
we just have to face the fact that the japanese have beat our asses they will import more domestic manufacturing to the US and produce more cars if the US automakers go down to make up for some of the job losses in the US automakers
plus japanese has a strong yen that continues to be a big problem for their exports giving them more incentive to produce in the US
plus japanese has a strong yen that continues to be a big problem for their exports giving them more incentive to produce in the US
