GM Needs a Bailout, aren't they some cocky people

[NEWSVTGUY]

gm says it needs $12 billion loans by late march
tuesday december 2, 5:22 pm et
by ken thomas, associated press writer
general motors says it needs $12 billion in government loans by late march to keep operating


washington (ap) -- general motors corp. Said tuesday it needs $12 billion in government loans to keep operating, telling congress in a bluntly worded report that its collapse could have "severe, long-term consequences to the u.s. Economy."
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gm said it would seek up to $18 billion from the government: $12 billion in loans, including $4 billion by the end of december, and a separate $6 billion line of credit in case market conditions worsen.

"absent such assistance, the company will default in the near term, very likely precipitating a total collapse of the domestic industry," gm said, contending its collapse would have "a ripple effect that will have severe, long-term consequences to the u.s. Economy."

"there isn't a plan b," said chief operating officer fritz henderson. "absent support, frankly, the company just can't fund its operations." he said gm would need $10 billion to $12 billion by late march.

Gm, along with ford motor co. And chrysler llc, submitted detailed plans to congress in hopes of winning support for at least $25 billion in loans to keep the battered u.s. Auto industry afloat.

Gm said it would take significant steps by 2012 to restructure, including the reduction of 20,000 to 30,000 workers, the cutting of nine plants and the slashing of 1,750 dealer locations.

It would focus future efforts on four core brands -- chevrolet, gmc, buick and cadillac. Henderson said the company was conducting an "expedited and strategic review" of its saab brand and was discussing options with dealers about the future of saturn. Pontiac would become a specialty niche brand.

The plan supports the formation of a government oversight board to ensure that taxpayers are protected and the company is restructured. Gm would negotiate swapping some of its $66 billion in debt for equity stakes.

Gm would seek concessions from the united auto workers union to help it survive. Areas under discussion include job security provisions and manpower levels.

Ceo rick wagoner will work for $1 per year and top executives will take major pay cuts. Henderson said gm would "immediately cease all corporate aircraft operations," meaning company leaders would travel by commercial aircraft.

Gm said the loans could be fully repaid by 2012, but if market conditions deteriorated, the company would need more time.

So it sounds like if they don't get their money they are going to take us all down with them. Ha, nice how Ford is saying they should be fine without it but good old GM can't manage.

And as far as that 1 dollar salary, I'm sure it'll come with about 20 million in bonuses every other month.

Ford > GM

:beer:

 

[Stopsign32v]

GM is the biggest joke of a company. They did it to themselves...

 

[Svets96]

^ its true, they did do it to themselves. Some people say GM will own both Ford and Chrysler at some point. That is the biggest crock o crap I have ever heard in my life. Ford has done well, because they have a significant number of brands which they can make money with and keep tabs on. They sold off Austin Martin, and Jaguar for a reason. They did not make money with ether. I could be wrong though.

 

[Stopsign32v]

The ONLY good thing GM has ever done was made the LSX series motors. Other than that they are worthless. Even the Corvette is built like a pos.

 

[blinelaxd27]

unfortunately they are somewhat correct in that it will have serious consequences for the economy... as much as I think they are all morons

 

[2003 Silver]

Fug them...I'm tired of being held hostage by their blabbering. Let 'em sink. Strong survive...weak perish...end of story.

 

[GTSpartan]

Is GM in a bad spot, you bet, but you have got to cut them some slack.

This whole $hit storm was caused by the idiots in Wall St. Each of the big 3 had their turnaround plans in place whne this credit collapse hit, which dealt a death blow to their plans. They would have been fine if this would have never happened.

GM was a much larger company than Ford, so downsizing is a little more difficult and takes longer.

The big thing Ford did was to morgage everything last year to raise capital. At the time, it was looked at with a lot of ??????. With the current economic environment it turned out to be a great move. That is the only move that really seperated Ford from GM.

Don't be so cocky that Ford is run so much better. They took a risk and it looks to be paying off.

Like I said above, if this economic thing never happened, GM would not be in nearly as bad of shape and could make it to 2010.

 

[AAG]

Even the Corvette is built like a pos.

Of course because the mustang's build quality is superior to that of the corvette. :bored:

 

[GTSpartan]

^They sold off Austin Martin, and Jaguar for a reason. They did not make money with ether. I could be wrong though.

Ford F'ed up big time even buying those brands. Big time money lose. Bad move by them. Sold them for pennies on the dollar.




By the way, it's not a bailout, it's a bridge LOAN to get them to 2010 when they transfer healthcare and legacy costs over to the UAW.

 

[Svets96]

We'll see what happens, this is gonna take a verrrryyy loooonggg time to get through. And of course we taxpayers flip the bill once again. :nonono:

 

[Stopsign32v]

Of course because the mustang's build quality is superior to that of the corvette. :bored:

I agree with you totally, it is. :beer:

 

[GTSpartan]

I agree with you totally, it is. :beer:

It sure must be, because my brand new 2008 GT blew it's tranny @ 800 miles for no good reason.

I still love the car though:beer:

 

[Wintermute]

The ONLY good thing GM has ever done was made the LSX series motors. Other than that they are worthless. Even the Corvette is built like a pos.

Really ?

Ever driven one ?

 

[02silverstang]

shit what about the economy doesnt that need a bail out too ?

 

[JMD0346]

That guy will take a dollar a year because he's probably sitting on 100 million he took out the company.

 

[Stopsign32v]

Really ?

Ever driven one ?

Yup many times including a 700rwhp Z06. Whats your point?

 

[redline]

if the government was smart they would tell the auto makers to dump the union then ask for help.years ago the union was good for the people but now different story . plus theses high paying execs. need to quit or take severe pay cuts. you DO NOT give a raise to a captain to the sinking titanic. well he has been with us for along time and its lonely out at sea . hell lets give him a raise .YOUR SHIP IS SINKING .IF THE GOVERNMENT WANTS TO BAIL ANYONE OUT it should be the tax payer .all the money for bail out i believe equal 50000. plus for every taxpayer.wow now thats a stimulus check.

 

[monkeyspunk79]

I like that other line in there about 'immediately ceasing corporate aircraft operations'. I dunno, but if I was the CEO of a major automobile company...I'd be driving one of my cars to my meetings.

It still chaps my arse that these guys flew their seperate private jets to DC to beg for bailout money.

People drive & fill out mileage reimbursement all the time, (Yes even at the executive level). Unless you're going coast-to-coast or overseas, stand behind your product...and DRIVE IT.

Or else save the $20,000 cost of a single 4 hour private jet trip and book a first-class ticket on Expedia. It works for the other 99% of the population.

 

[Gallows]

I'd say they will get some money but with a lot of strings attached.

 

[HYBRED]

People drive & fill out mileage reimbursement all the time, (Yes even at the executive level). Unless you're going coast-to-coast or overseas, stand behind your product...and DRIVE IT.

While I don't think they should have flown privately, driving from Michigan to DC wouldn't have been very smart either :bored:

And WHY the HELL won't they ditch Buick? Sure, let's toss our affordable, marketable brands, Pontiac and Saturn, and keep the old gramma division that's only selling well in China!:shrug: