RoswellGrey

I don't know if I'd count a bailout dead yet. Look what the N.Y. Times is now reporting:

WASHINGTON — President Bush and the Treasury Department signaled on Friday morning that they would consider dipping into the $700 billion bailout program for financial institutions to aid the Big Three car companies, after Republican senators refused to support a compromise proposal to rescue the automakers.

“Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms,” said Dana Perino, Mr. Bush’s spokeswoman, in a carefully nuanced statement released just minutes before the New York financial markets opened. “However, given the current weakened state of the U.S. economy, we will consider other options if necessary — including use of the TARP program — to prevent a collapse of troubled automakers.”

The Treasury Department promptly indicated that it would provide short-term relief to the automakers.

“Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry,” said Brookly McLaughlin, a Treasury spokeswoman.


What this fails to mention, naturally is what strings would be attached.

RoswellGrey

Interesting. Late last night after the Senate killed the bailout, the Asian markets were crashing, which was blamed on the Senate's decision. In the wake of the N.Y. Times article, this is what's currently happening in the U.S. markets:

Dow +4.94 +0.06% 8,570.03
NASDAQ +14.71 +0.98% 1,522.59
S&P -0.38 -0.04% 873.21

BLK 6050

I agree...but the bailout will happen, it's just a matter of who will sign it off and when.......
The Roller Coaster Ride has not stopped...will be interesting to see where it stops...
And, if they indeed want a "Car Czar"...get someone who actually "Knows" cars and the business....

Quaaludes714

I agree nothing will happen in the Senete....
But maybe they will get some money from henry Paulson.......
But the problem is that if they all go BK11 and they still will keep making cars,that the
2010 Challenger and 2010 Camaro SS will not be built.They need to make
lovely green cars for the economy and for global warming.
They all say Chrysler will be the first one to go,The companys that supply the parts
wants CASH on the spot knowing that they might not be around in 2009.

RoswellGrey

Where did you see this about cash being demanded? I read business news all the time and have seen absolutely nothing about this. In fact, a Chrysler official was quoted last week as denying this rumor. Who are the "they" you refer to? I'm interested in seeing this material.

RoswellGrey

Never mind, Quaaludes. I just found an article:

Report: Chrysler suppliers are demanding cash

Philip Nussel
Automotive News
December 12, 2008 - 1:14 am ET

DETROIT Chrysler LLC's suppliers have begun asking for cash on delivery for auto parts, the Associated Press reported late Thursday, citing an interview with executives. Vice Chairman Tom LaSorda and Chief Financial Officer Ron Kolka said suppliers and other vendors have demanded COD, but the company is "fending them off," the AP said.

When suppliers demand COD from a troubled company such as Chrysler, it can cause chaos in the company's financial structure.

Chrysler's cash will drop to $2.5 billion by Dec. 31, company officials have said. That's the bare minimum the automaker needs to make payroll and pay suppliers, according to the report. Chrysler pays its suppliers $7 billion every 45 days, Kolka told the AP.

"January, first quarter is a big problem for us," Kolka said.

Chrysler's depleted cash situation underscores the financial crisis faced by the Detroit 3 as a federal government loan bailout failed late Thursday evening. Without an immediate infusion of cash, both Chrysler and General Motors have said they could run out of funds to operate their businesses by the end of the year.

Chrysler has scheduled a meeting Friday with its suppliers, but LaSorda told the Associated Press the company will not ask for concessions. Suppliers know that concessions, either price reductions or longer payment terms, are likely, and the company wants to work with them to reach the numbers, LaSorda and Kolka told the AP.

Kolka acknowledged "quite a few" Chrysler suppliers now are asking for cash.

"The biggest risk we have is our suppliers coming and saying 'I want to be paid on delivery,'" Kolka told the AP. "We can't do that. The math just doesn't work."

Chrysler and GM now must develop a plan to operate after Thursday night's events in Congress.

"Chrysler is obviously disappointed in what transpired in the Senate and will continue to pursue a workable solution to help ensure the future viability of the company," the company said in a statement released late Thursday.

Chrysler is owned 80.1 percent by private equity fund Cerberus Capital Management LP – and 19.9 percent by its previous controlling shareholder, Daimler AG of Germany.

Quaaludes714

Geee I would think Chrysler is in trouble,,I think if their Hedge wants to they
can stay in business.But they are smart why throw good money with bad money.
As for GM,their days are numbered.....

As of now I really want to see the Camaro SS and if I don't like the car
I will buy a 2010 Challenger in Sept of 2009.
Problem both companys might be gone by then......

Yep I know I can buy a 2009 RT in March if I don't like the Camaro SS,,,but I would rather wait a few months and get a 2010....

All that being said
I am being bummed at thinking of getting a 2010 Stang Gt with only 315hp

epegasus

Bankruptcy and subsequent restructuring is what the auto industry needs in order to scrape off the UAW and lower the cost of the average Domestic automobile thoudsands. And YES, the average auto worker will see a decrease in their salary and bennies. But have you seen what the compensation packages look like for the average line worker? My neighbor retired from GM back during the 80s and it was obscene what he made for installing windshields! But even so, the took a major plug out of is backside, too. American car manufacturers have made vast improvements in the cars they make, but they certainly shouldn't be costing as much as a Honda or Toyota. They should be cheaper and therefore much more competive here on the home turf. And guess what. If Ford, Chrysler and GM are more competitive at the econobox, mid range and mini-van levels they can afford to have the niche market stuff like the Challenger which brings gawkers into the showrooms who then buy the other stuff.

So the Congress needs to back off and continue to do absolutely nothing (which, BTW, has gained them the worst approval rating in history) and let the market balance this equation which has been thrown out of balance by the s for decades. We can't continue building cars at twice the labour cost of the foriegn competition. Guess who is preaching that you can't allow the big three to file for bankruptsy? Bosses who actually claim that if the Big 3 file then all the workers will abandon ship. WHAT??? Workers will stay where there is a reliable paycheck. bosses say this because they know they will be DOA in a restructuring.

As for the Congress Biggest bunch of morons we have ever collected in one spot in the history of this Great Nation. They should all be run out of town. They allowed the laxed qualification for loans that saw all these people get mortgages they couldn't afford from day one. Then they allowed Fanny and Freddie to get stuck with them as the middle men took their money and ran. They then had the nerve to hold hearings and point fingers at everyone but themselves. And now they are allowing Trillions of our money to just disappear while our retirements dwindle and our jobs evaporate. The only thing our current political system accomplishes in a bi-partisan manner is let us down. Sorry for the rant.

Firedog

Man this is really screwing my plans up! I'm going to be contracting overseas until at least the end of 2009, maybe the end of 2010. My plan was to order an SRT Challenger a few months before I was ready to come home. Now what do I do?! Assume that they're not going to be making the 2010 and order an 09 now?! But then with my luck they make the 2010 and I'm stuck with a lesser 2009...Or I don't buy the 2009 now, they don't make the 2010, and I'm stuck buying a used Chally.....[sm=wtf.gif]

JJMPB

anyone have Lee Iaccoca's telephone #?