GM Making Case That It's Too Big To Fail

New York Times:

Is General Motors too big to fail?

Rick Wagoner would sure like us to think so. Mr. Wagoner, the chief executive of the ailing automotive giant, spent most of Friday down in Washington, pressing his case for a government rescue.

Yes, G.M. wants our tax dollars too. Banks are getting billions. Insurance companies are getting billions. Why not G.M.?

Read the whole story: New York Times

Comments

[bitabingbitabangbitaboom]

GM you don`t want to do that......­..........­.......we`­re a Socialist Country and the government is going to tell you to build 50% of your fleet to be 65MPG cars......­..........­......roll the dice go for broke.....­.......com­e on you can do it.

GM soon to be Toyotagm

[blood1]

This process of bailing out every industry is problematic, in that the automakers are not offering any benefit to the whole American populist, but only those in the related business/industry. I am concerned for the employees, but not for those making decisions, as they were supposed to be the forward thinkers…and as we all know the electric car has been made before, but was scrapped…and now these managers want time to “re-create that wheel”.

If I were in charge, I would require a “business plan” detailing what they would do with the LOAN monies. Do they have a budget breakdown? What are the CEO, CFO, etc making? Can they guarantee a timeline for their new automobiles? or is this just throwing more money down a new rat hole?


A novel idea that is against my Green sensabilities: Have the congress lower fuel emmission standards (FOR A SPECIFIED AMOUNT OF TIME -5 years?) to those similar to Europe so that these the auto firms can sell their fuel efficient models while they rebuild / retool / redesign their business. If at the end of that time, they have made NO PROGRESS, then let them fail as they have proved themselves to be unable to adapt. This would save the government lots of money and be able to divert these funds to “green” projects, etc.

Otherwise, I see all of these handouts as kneejerk reactions that help very few….as we have already seen from the Wall Street bailout.

[iambusto]

A quick trip back from Chapter 11 is just what the doctor prescribed for GM.

GM has lost more money in all its history than it has made. A quick look at its current balance sheet proves that.

It employs too many people so it cant be liquidated. but it needs to:
1) enter chapter 11
2) shed assets, employees, brands, plants
3) shed it fast, shed it huge.
4) reemerge with new contracts.

[bitabingbitabangbitaboom]

Can you right that to the Sound of Music please....­..........­..........­.....a vucken day late and a dollar short.....­..........­let them dangle

[Mike169]

I want one of these guys to say that they are too stupid to fail!

[bitabingbitabangbitaboom]

How about.....­..........­......... Too Dumb to Die

[Mike169]

Too dumb to die... too drunk to care. Hmmm that might be me!

[RobinSeattle]

This is corporate feudalism!

Basically, GM is saying that we regular folks (serfs) need to chip in our money or this citadel of the American economy will collapse and bring a new economic Dark Ages. This is even though the Lords (the GM execs) have misgoverned their fiefdom.

Other applicable descriptions are: "blackmail" and "a stick up."

Chrysler should have gone out of business years ago. They suck. Why GM wants to take them on is anyone's guess. This just boggles my mind.

[spiderbucket]

Too big to fail = too big to exist.

[Samalabear]

Exactly.

[Tom95134]

Does GM fail and go with a "BANG" or does GM just keep making the kind of cars that don't sell and go with a "whimper". My guess is that they will get the money from Paulson and then just whimper off into the sunset with their corporate executive bonuses guaranteed for the next few years.

[Chavez08]

U.S. manufacturers [were] the heart of the U.S. economy. Good paying auto manufacturing jobs set the pay parity for everyone else, like it or not. Those naive enough to embrace "Free Market" ideology and not rich are learning this valuable lesson in economics the hard way. (sorry, - you'll have to talk to the University of Chicago about your refund)

Anyone have ideas on how we can rebuild our manufacturing base?

[sposton]

A wise sustainable energy policy has the greatest chance for energizing the job creation in the US. This includes manufacturing wind and solar products, efficient high-speed rail transportation, plug-in and electric cars, new electrical energy backbone, energy conservation products, etc. Even construction jobs can be created if we shift from current suburban "development" to more sustainable and denser urban development. This might rejuvenate our older decaying cities. We must make a transition to where the majority of us work closer to where we live.

[EinChicago]

"Even construction jobs can be created if we shift from current suburban "development" to more sustainable and denser urban development. ."

It'll certainly create lots of new police, fire and prison gauard jobs to deal with the accompanying massive spike in crime rates.

[sposton]

If we are dispensing money to mismanaged banks how can we say no to mismanaged car companies? After all, they are producing something which is more we can say about banks.

[Chavez08]

Unless they commit to a plan to bring back manufacturing to the U.S., they should be denied any help.

I have a few friends and relatives working for GM, and yes, it is a very hard position to take but any future for our nation critically depends on a strong manufacturing base with GOOD PAYING domestic jobs.

[bitabingbitabangbitaboom]

Dream On