Friday, December 05, 2008

Will the Car Industry CEO's Get What They Want ? Does it even matter at this point ? Is Bailing CEO"s going to help Workers and their Families ?

I have been watching the Car Hearings this week....I am still thinking NONE of the CEO's are really trustworthy, I am not sure I would hand them 10 bucks, much less 39 Billion.....So during the Hearings I watched Old Car Ads, thinking would the Original Car Men have supported the Debacle of this mess ? Would they have come to DC with their hands out after flying on their Private Lear Jets, and dining in DC resturantes on Duck and Salmon during Lunch....worried about stains on their $2000 Dollar Suits ? Would they have Slighted the HealthCare Benifits and Added Layoffs while giving themselves Bonuses ? I watched most of them and realized Not One of them could play Poker- they all have "tells", blinking and sweating....And silly me, but so the Company Big Suits get the Money- then What? People will still NOT have Money to Buy the Cars that are made. I don't know about where you live, but here there are alot of empty lots.....and Closed Dealerships...

DC is very lucky that we ALL have not shown up in DC with our little hardworked hands out....I still have seen Nothing for Workers and Taxpayers, and people struggling to stay in their homes...with no healthcare and no way to send their Kids to College...REAL People somehow have forgotten in all this....

I guess I am confused, but I don't understand WHY they can not declare Bankruptcy and re-organize ?


Fran said...

That ad is a hoot! You don't hear those words in ads today-- torture, climax- shall I put that on out tab?
No the repair did not cost much, I'll pay cash!

A different era indeed.

Now it's like we can squeeze in an appointment in 3 weeks- and it's gonna cost ya.

Still the craziness of all this bridge loan bailout.... if they really are close to tanking, is making a loan a good idea?
Some economists say the forced restructuring of an official bankruptcy would be better for them in the long run-- BUT will people actually buy cars from a manufacturer of a bankrupt company?
Worried they won't be around to make parts & service their big ticket purchase?

Airlines pulled it off,(being bankrupt) but that is a service, rather than a big ticket item- goods.
Two very different items. If the airline went under, you just don;t fly with them again, but if your car mfr goes under, and you have 7 years of payment ahead & they go under.... you can be screwed for parts & service- even warranty issues.... for a big ticket item that is the 2nd largest purchase besides a house.

I don;t want the worker bees to get screwed & lose pensions & health care, but even if they are bailed unless we jump start producing jobs, the auto industry will take a financial hit anyway.

Heck of a job george. grrrrrrrrrrrr

D.K. Raed said...

Oh those were the days! I almost lost it when the repairman says to the customer, I think it's running fine now, but let's take it for a drive just to test it & make sure. Today all you get is your keys back after they swipe your visa & hope the repair itself didn't cause something else to go wrong!

Fran is spot on about no one willing to buy a big-ticket item like a car from a bankrupt company. It's just too large an investment to take a chance. Also I believe a big part of bankruptcy is loan restructuring. Well no one is loaning at all right now, so who exactly would be providing these loans? Another idea is selling the Big 3 outright, but who is interested in investing in companies that have proven their long-term liabilities far exceed any profit potential. No easy solution anywhere.