When Ford met with congress they spoke of their financial strength, and how they expect to return to profitability by 2011 with a plan that requires relatively modest changes. Does that mean that GM and Chrysler are more in need of a bailout, or that Ford is more deserving?

It's your money, where would you rather throw it?

 

Just what I have heard on the news, is that Ford has enough liquid cash to survive through 09, but would be in trouble after that if something isn't done to help them out.

On the flipside, I head that if GM doesn't get at least $4 Billion by the end of Dec., they are finished. This is bits and pieces of things I've been catching here and there, but I can't be sure what is needed exactly for all 3 to survive. I can't speak to Chrysler's scenario, as I haven't heard much.

Personally, I say let them all go Chapter 11 and then reorganize without unions, as I think that will be the only way the big 3 will survive. But, if you are going to give them any bailout money, I think Congress should take back the AIG loan and give it to the big 3. Instead of AIG giving "bonuses" to their execs, which violates the stipulations set forth in their bailout money, AIG has developed a work around and is giving "retention" checks to all the execs so they don't jump ship before they can sell the company.

Meanwhile, the big 3 are asked to bend over and submit a "gameplan" before they see a nickel. That's a bunch of chit IMO, why were no other companies asked to do the same.

 

Yeah i agree they all need to file chapter 11 and restructure. At the rate they are losing money the bailout money without a restructure would just put a small bandaid over a bad problem. Like you said before the only way they have a chance of surviving is getting rid of union presence.

 

That is a good question. I suppose it is not as clear as to how they got into this mess in the first place. Every one has their own opinion. They want to hear each companies opinion on how they are going to get out of this mess.

If the union did in fact get us into this mess, then there is no other way out of it than letting them go bankrupt. I'm starting to understand your points.

 

My opinion on this whole bailout thing has changed in the last 2 weeks. I used to believe that the US automotive industry was so big and so integral to the US economy that we needed to do just about anything to keep them going. Then I started listening to what they say they're going to use the money for.

Here's my new position. All the bailout money is going to do is allow them to keep running the exact same way they always did. Management and the UAW have totally ruined the business - together. The business as it's currently run does not deserve to exist any longer. It's time for a Cntrl-Alt-Del for the industry, so let them go belly up. It's going to hurt, but it's the only way. The industry cannot simply go away though, so somebody will buy the remains and start it back up. Maybe those people will be a little smarter. I don't want to personally fund this mess with my tax dollars though.

That's my 2 cents.

 

I completely agree. Chapter 11 and give them a do-over. A bailout is just going to prolong the inevitable. Plus, did you hear they the initial figure of $25 billion just shot up to $34 billion. That right there tells you they don't even realize how much trouble their in. Over the course of a week, that figure shot up almost 50%...

Here's the source: http://finance.yahoo.com/banking-bud...-Save-Detroit?