My understanding a good deal of GM’s current woes, is their financing arm GMAC (owned by Ceberus) is only extending loans to people with credit scores 700+…..

My understanding a good deal of GM’s current woes, is their financing arm GMAC (owned by Ceberus) is only extending loans to people with credit scores 700+…..

[quote=equalizer]Grant Thornton: “One way or another, these companies need to shrink a lot. In a merger, GM would eliminate as many as 40,000 of Chrysler’s 67,000 employees, and as many as 19 of its 26 car and truck models. 2/3 of 22,000 dealers could close!”

Wilbur Ross, turnaround king, says bailout needed to save 100,000 good paying jobs. “If you want market solution, then you will end up Walmart jobs.”

Fast Money crowd: Just buy out employees directly and they can train for better jobs. Then auto firms can be slim down and make only cars that people want like Corvettes and Ford GT.

Cramer: Dont buy auto sector until Govt bailout, then buy auto bonds, preferreds.

Ayn Rand: Screw MI and the lazy democrats, no bailouts for overpriced Corvettes.

[/quote]

Probably also wouldn’t hurt Wiiilbuuur’s portfolio of junk, err, automaker debt.

[quote=equalizer]Grant Thornton: “One way or another, these companies need to shrink a lot. In a merger, GM would eliminate as many as 40,000 of Chrysler’s 67,000 employees, and as many as 19 of its 26 car and truck models. 2/3 of 22,000 dealers could close!”

Wilbur Ross, turnaround king, says bailout needed to save 100,000 good paying jobs. “If you want market solution, then you will end up Walmart jobs.”

Fast Money crowd: Just buy out employees directly and they can train for better jobs. Then auto firms can be slim down and make only cars that people want like Corvettes and Ford GT.

Cramer: Dont buy auto sector until Govt bailout, then buy auto bonds, preferreds.

Ayn Rand: Screw MI and the lazy democrats, no bailouts for overpriced Corvettes.

[/quote]

Probably also wouldn’t hurt Wiiilbuuur’s portfolio of junk, err, automaker debt.

[quote=equalizer]Grant Thornton: “One way or another, these companies need to shrink a lot. In a merger, GM would eliminate as many as 40,000 of Chrysler’s 67,000 employees, and as many as 19 of its 26 car and truck models. 2/3 of 22,000 dealers could close!”

Wilbur Ross, turnaround king, says bailout needed to save 100,000 good paying jobs. “If you want market solution, then you will end up Walmart jobs.”

Fast Money crowd: Just buy out employees directly and they can train for better jobs. Then auto firms can be slim down and make only cars that people want like Corvettes and Ford GT.

Cramer: Dont buy auto sector until Govt bailout, then buy auto bonds, preferreds.

Ayn Rand: Screw MI and the lazy democrats, no bailouts for overpriced Corvettes.

[/quote]

Probably also wouldn’t hurt Wiiilbuuur’s portfolio of junk, err, automaker debt.

If Detroit scales back it operations by 50%, 2.5 million jobs will be lost. GM October sales were down 45%. We call that the writing on the wall. The cheerleaders who wrote this report can talk all they want about the terrible consequences of scaling back, but at least that is less idiotic than producing cars just to let them sit in the lot. Consumer demand is plunging throughout the entire economy, not just for automobiles. Are we going to let everyone keep their jobs at the expense of everyone else? How absurd would you like it? I haven’t seen any recent claims about making a profit on the AIG bail-out, but that’s about the level of emptiness we’re talking here.

http://www.canada.com/vancouversun/news/business/story.html?id=3ee58fb8-577c-495b-afda-3bc9ada52b6e

TORONTO — A leading think-tank has drawn a doomsday picture for the North American auto industry showing that if Detroit’s automakers shrink further or even fail, the U.S. economy will suffer a crushing blow.
In a report released Wednesday, the Center for Automotive Research in Ann Arbor, Mich., outlined what would happen in two separate scenarios if General Motors Corp., Ford Motor Co. and Chrysler LLC were forced to scale back or shut entirely.

If Detroit scales back it operations by 50%, 2.5 million jobs will be lost. GM October sales were down 45%. We call that the writing on the wall. The cheerleaders who wrote this report can talk all they want about the terrible consequences of scaling back, but at least that is less idiotic than producing cars just to let them sit in the lot. Consumer demand is plunging throughout the entire economy, not just for automobiles. Are we going to let everyone keep their jobs at the expense of everyone else? How absurd would you like it? I haven’t seen any recent claims about making a profit on the AIG bail-out, but that’s about the level of emptiness we’re talking here.

http://www.canada.com/vancouversun/news/business/story.html?id=3ee58fb8-577c-495b-afda-3bc9ada52b6e

TORONTO — A leading think-tank has drawn a doomsday picture for the North American auto industry showing that if Detroit’s automakers shrink further or even fail, the U.S. economy will suffer a crushing blow.
In a report released Wednesday, the Center for Automotive Research in Ann Arbor, Mich., outlined what would happen in two separate scenarios if General Motors Corp., Ford Motor Co. and Chrysler LLC were forced to scale back or shut entirely.