Merger is Off!

-
Vic Storm

Vic Storm

Well-Known Member
Joined
Mar 2, 2006
Messages
1,263
Reaction score
2
Location
west plains, MO
Last night on the national news they reported that GM can't afford this months light bill let alone buy out Mopar so the deal is officially off.
Obama has pledged to help them both out if they can last long enough for him to get into office. I hope that they both do, it just wouldn't be the same world without Chrysler and GM let alone all the hundreds of thousands of people that depend on them for survival.

Do you guys think the government should help them or let the weak die and the strong survive like any other business?
 
IMO this is just the next chapter in the story, and its far from being over. I'd be willing to bet that there is going to be governmental aide to help out whether its to move the "merger" forward or to help each out seperately.
 
From an article in the Detroit Free Press:

"....General Motors Corp.'s increasingly dire situation led the Detroit automaker to say Friday that it is setting aside efforts to merge with Chrysler LLC to focus on saving its existing operation...."

"....Chrysler Chief Executive Officer Bob Nardelli said: "As an independent company, we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid in our return to profitability."

David Cole, chairman of the Center for Automotive Research, said he believes the merger talks with GM could be back on the table if the industry gets government help....."
 
It would be sad to see any of em go BUT let's get real. How much did the CEO's of these old companies get for perks, bonuses, and who knows what else. That should be one of the stipulations for the consideration with tax payers money. These goons were hired to take the companies in a profitable direction. Did they do that? Obviously not. They not only got paid for doing a sorry job but they also got some unimaginable perks at the cost of shareholders like you and i. So you go to work tomorrow and the machine you built last month killed two people due to your ignorance in assembly and the boss calls you in and reaches in the bottom drawer and pulls out a fifth of fine scotch and you and he suck down a few and slap each other on the back with a few laughs and as you expected he gives you a bonus just because you and he have the same goals in mind. YOU'RE POCKET. I'd say sure. We'll bail you out,BUT you have got to make things right. All the big boys that got bonuses WILL give back the bonus money and there will be NO more of the same bullshit taking place or the bailout is over. The tax payers have hired the people in Washington to do just this kind of regulation and NOT take a payoff. Some will say "Well what about the CEO that spent it on the island he bought in some far away place? The money is gone". Ever hear of an auction. Sell every possession he owns and give it to the tax payer fund. So what if one prick that don't give a damn about you and i goes down. Better him than thousands of tax payer. Did anyone get the foggyest idea that i'm a little bit irritated ? Any thoughts?
 
Small block I have to agree with you on that. Just got layed of a couple of months ago from a company that is in trouble..But the CEO still gets his money along with the VP's there.. He just figured to save his check is to down size in other areas So a lot of good people are now out of work, and the company is still in trouble.
 
Every thing that has been said above I totaly agrea with. If you owned your own buisness and it was failing would you take a 1-3 million dollar bonus........uh no. If you did what do you think all the share holders of your company would say about that? Though I guess that if it was an auto maker then it would be ok.

No there is a whole bunch of things that have led up to this, the economy is just one of those things. Look at the selection of vehicals out there today, I mean other than the big 3 there is Toyota, Nissan, Kia, Honda, VW, Mercadies, BMW, Subaru, Mazda, Volvo, Hyunda and I'm sure that there is a lot more. Now all of these companys are trying to get you to buy from them and make money, the piece of the pie is getting smaller and smaller. The fat cats that are running these companys have to look at what they are doing wrong and make the changes, that inclueds at the top as well. do you really need to have a president a vp a vise vp and a vise vise vp............ect. start at the top and work your way down. I can see that they may have to cut back production but talk to the workers that are doing the work for you. Work with them to maybe take pay cuts but also take the pay cuts at the top as well or first. If the whole copany works together from top to bottom they will survive, is it better to not make as much money and work than to be out of work?

I think that GM has backed out but what about Renault/Nissan?
 
Well said small blk, cut off the legs and the head laughs. That is extremely insulting to me. There is nothing wrong with education and experiance getting you your just reward. Take a good wage, give good wages for good work and the company will survive. Put all that big bonus money into finding the minds & hands that have the new ideas to design and build better cars for the future so everyone the company supports survives plus lets agree to let the foriegn owned car companys that don't build thier cars here that they sell here pay a high import tax and let them bailout our car companys.
 
The Goverment should have used the Bailout for Ford,GM,and Chrysler.To hell with the crooked banks.But I am sure even while the American auto companys are hurting the CEO's and all the top dogs are still getting payed way way to much.Meanwhile the auto workers are getting laid off left and right.
Jim
 
68383GTS said:
The Goverment should have used the Bailout for Ford,GM,and Chrysler.To hell with the crooked banks.But I am sure even while the American auto companys are hurting the CEO's and all the top dogs are still getting payed way way to much.Meanwhile the auto workers are getting laid off left and right.
Jim
Click to expand...
Crooked banks wasn't necessarily the problem. A lot of the banks that are in trouble were forced to make bad loans by the crooked government.
 
GM has axed lifetime benefits for former employees. As I understand it, these benefits were one of the factors that may have contributed to the auto industry's downfall, paying benefits to workers well beyond their tenure. Sucks for the former employees who now have to scramble but this was probably necessary. It's not going to save the company though, they're just trying to stay alive at this point.

I've also heard a report that Chrysler may be 'broken up' and sold off as smaller parts. That probably means someone will buy the Jeep name, Sprinter will go somewhere else, etc. Who knows.

Hopefully Mopar Performance will still be around in some capacity.
 
just think . soon the only cars and trucks you will be able to buy will be from china . and what not . and the usa will be up for sale . and china really aready owns us due to all the money we owe them anyway .
 
rmchrgr said:
GM has axed lifetime benefits for former employees. As I understand it, these benefits were one of the factors that may have contributed to the auto industry's downfall, paying benefits to workers well beyond their tenure. Sucks for the former employees who now have to scramble but this was probably necessary. It's not going to save the company though, they're just trying to stay alive at this point.

I've also heard a report that Chrysler may be 'broken up' and sold off as smaller parts. That probably means someone will buy the Jeep name, Sprinter will go somewhere else, etc. Who knows.

Hopefully Mopar Performance will still be around in some capacity.
Click to expand...
The only thing I have heard along those lines is that they were thinking about selling off the Viper operation. Hennessey was supposedly looking at acquiring it.
 
BUY AND DRIVE WHAT YOU BUILD! Just my two cents worth.... I do have a beater of a toyota that is just that. I got $500 in it and it is 4x4. I use it as a farm truck. A friend was in need of some cash so i bought it, and when it dies it dies.
 
I'm glad the merger is off. As an interesting side, you may enjoy this quote about the 1979 bailout of Chrysler;

This is not unfamiliar territory for the auto industry. In 1979, Chrysler nearly went bankrupt and lobbied the government for assistance. A $1.2 billion loan, coupled with deep executive pay cuts and major union concessions, helped turn the troubled company around. Under Lee Iacocca, Chrysler invented its iconic minivan, popularized the SUV and repaid the loan in four years. The government even made money off the deal.
Click to expand...

At that time, I worked as a tech for Chrysler. I don't know if Allentown, PA is Mr. Iacocca's home town but he has family there. They owned a restaurant called, "Iacocca's" Hmm Imagine that.

I was told by an insider at the time to buy Chrysler stocks. They were real low at the time. He said there was no danger of bankruptcy, that Mr. Iacocca just needed a loan to retool the factories. The tooling was getting pretty worn out and I can vouch for that by the amount of water leaks we had around windshield and backlite areas and the way body parts fit in general.

The government loan was made, Chrysler got their retooling and the Feds even made some money out of the deal. Note that concessions were given by exec pay cuts and the union.

Occasionally Mr. Iacocca would come to town. I've worked on his White Imperial a few times. He never brought it into the dealership himself, he always had the district rep bring it in. He would insist either I or a guy named Bob Hill work on it. Bob was a hell of a mechanic. I never did buy any of those stocks. I was just a stupid kid with no money. Well at least I ain't a kid any more.........lol!
 
I remeber the Chrysler deal of 79 very well. At the time i had $20000 lying around and was looking for a place to turn a profit so i went to my local Shearson Leamon Brothers office and spoke with a young dumbshit about the stock price at the time. It was $12.875 and he suggested i waited till it went down to $10. I was the dumbshit that took his advice. 6 weeks later it was in the 50's. After that i opened up my own trading position with another company and bought Bethleham Steel and did very well. Some of those brokers don't know their *** from a hole in the ground. One of the most interesting positions i've been in is that i was asked by the Feds to testify against crooked brokers. The feds flew me around the states to court appearances. That was fun. GM is cheap and the gov aint letting them go down so there may be an opportunity. There are risks.
 
I am really mixed on this one. I don't think the Government should be bailing out anyone but then again, like the banks, all of the regulations they keep passing are causing the auto industry to spend more and more money. In addition, this industry actually makes something (as in part of the GNP). The banks are service and do not make any thing. I guess, this is a bailout that is needed not matter how bad it tastes.

Now if the new president has his way, he will increase taxes on Cooperations and businesses. He seems to fail to realize that taxes are a business expense. If the tax rates are increased then they raise their prices to cover it leading to inflation. In addition to the credit problem, everyone should prepare to a massive increase in inflation in the near future.
 
You must log in or register to reply here.
-

Back
Top