Obama Transition Said to Consider a ‘Prepack’ Auto Bankruptcy

[TorrentRS]

I personally think we have nothing to be worried about. Obama will do the right thing one way or another. Soon, the Big 3 will realize their mistakes *cough*kill Hummer, Chrysler and Mercury, and make good products for the money by coming out with the Cruze, Ka, and Hornet as soon as possible, *cough* and this will soon be cleared.

[mbukukanyau]

The problem with paying Unions less is that, it will push them in to lower middle class. Something needs to be done to ensure American workers are well paid. You need to at least be able to afford the cars they make. At $15.00 per hour there is no way a worker can support a wife, a few kids a mortgage and afford a Malibu.

[fan]

How about automakers come up with that plan that should mention givebacks by all involved (suppliers, dealers, union, automakers)? Bankrupcy type concessions (If more cuts are really needed that is)
The gov should just agree to the plan, give the money and let the things unfold without swirling banckupcy rumours around.

[SierraGS]

Do not see the benefit of a "Prepack" if it going to take 12 months, by then the Big three will start reaping the cost savings agreed to a year ago.

Besides this GM going under and it's stock going to zero could be the straw that breaks the markets back - many investors are getting tired of these large companies going under over the weekend (like Wamu when it "had a buyer" on Friday).

Yes, stocks are risky but when there is a viable alternative it should be looked at - for what little the stock it worth the government should just buy up all outstanding common (much of it is owned by state and gov't pension plans anyway) - I can see the "Did you lose money on GM stock?" lawsuit ad on TV now.

The only "Prepack" I would agree with is one with Chrysler since there are no common stockholders to sue the government over losses later and since it is a private company most of the nasty details sill not need to be disclosed. This will also greatly reduce the pension liability going to PBGC and Healthcare to Medicare. Additionally it reduces the number of creditors that need to be dealt with lowering costs and delays.

[Kennyboy]

Originally Posted by TorrentRS

I personally think we have nothing to be worried about. Obama will do the right thing one way or another. Soon, the Big 3 will realize their mistakes *cough*kill Hummer, Chrysler and Mercury, and make good products for the money by coming out with the Cruze, Ka, and Hornet as soon as possible, *cough* and this will soon be cleared.

*Cough* That doesn't end union contracts that gives foreign competitors unfair wage advantages, universal healthcare for foreign companies, currency manipulation by foreign governments, and government subsides for foreign companies. I'm surprised that the Big 3 even made to 100 years, since most Americans are hostile to American-made products.

[TorrentRS]

Originally Posted by Kennyboy

*Cough* That doesn't end union contracts that gives foreign competitors unfair wage advantages, universal healthcare for foreign companies, currency manipulation by foreign governments, and government subsides for foreign companies. I'm surprised that the Big 3 even made to 100 years, since most Americans are hostile to American-made products.

*cough* I know that, and you forgot the other 'cough' at the end.... *cough*