If GM wants to continue as auto co, it should divest itself of

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Thread: If GM wants to continue as auto co, it should divest itself of

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    Exclamation If GM wants to continue as auto co, it should divest itself of

    everything else and stick to mass producing autos in US !

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    6.2 Liter LS3 V8 Ronald McChevy's Avatar
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    Re: If GM wants to continue as auto co, it should divest itself of

    wow great thread!

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    Re: If GM wants to continue as auto co, it should divest itself of

    Holy **** Man This Has As Much Substance As The Mccain/palin Campaign

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    Talking Re: If GM wants to continue as auto co, it should divest itself of

    Don't laff so fast fellas ! the floor is hard and concrete lol

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    Re: If GM wants to continue as auto co, it should divest itself of

    I would consider canadian plants as GM's by proxy lol !

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    4.4 Liter Supercharged Northstar 61BelAir's Avatar
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    Re: If GM wants to continue as auto co, it should divest itself of

    It seems to me that GM would rather build autos outside of US borders so they don't have to pay exorbitant UAW wages.

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    Re: If GM wants to continue as auto co, it should divest itself of

    Quote Originally Posted by 61BelAir View Post
    It seems to me that GM would rather build autos outside of US borders so they don't have to pay exorbitant UAW wages.
    That may be the case for GM plants in Russia, China, India, etc....

    but GM are still running plants in costly countries like Australia, Belgium, Germany, and the United Kingdom.

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    Re: If GM wants to continue as auto co, it should divest itself of

    It has already divested itself from many maoney making ventures like Suzuki, GMAC, Isuzu, and look were they are tody.

    The only money lossing cash cow GM has is N.A. Operations

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    Re: If GM wants to continue as auto co, it should divest itself of

    Quote Originally Posted by 61BelAir View Post
    It seems to me that GM would rather build autos outside of US borders so they don't have to pay exorbitant UAW wages.
    "and UAW wages Plus to exorbitant executives dependent on their grunts hard fought wages !""...

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    Question Re: If GM wants to continue as auto co, it should divest itself of

    How much money has GM (made) at Poletown joke of an assembly plant lol ?

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    Re: If GM wants to continue as auto co, it should build new

    one million car production plants with direct shipping of vehicles to anyplace on earth right from the line ! Via air, rail, truck and ship. I suggested that such a plant be built in Delray instead of present Hamtramck plant, it is still not too late in other areas......

    p.s. If Fleetwood could build all the Cadillacs in the world in one old dilapitated 6 storey bldg on Fort St in Detroit and made money ( 250,000 plus vehicles per year in 10 months on 2 shifts and 6 or less days per week ) then the new super plants are capable of 500,000 - 1,000,000 vehicles per year each ......
    Last edited by al_gy; 11-09-2008 at 08:34 AM. Reason: clarifying original statement as no exageration, even if grandoise lol......

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    Re: If GM wants to continue as auto co, it should divest itself of

    https://www.gminsidenews.com/forums/1558450-post11.html
    O.T.
    Fighting bailout mania
    BY Hugo Dixon, Breakingviews.com — 11/07/2008
    If banks can get government capital that costs as little as 5% a year, why shouldn’t carmakers, retailers, or even struggling media groups? Unlike banks, they weren’t even responsible for the current mess. Why should the prodigal son get the fatted calf while the other children have to make do with scraps?

    This argument is so seductive that governments across the world will be hard-pressed to resist it. Indeed, one of Barack Obama’s first tasks as president-elect may be to pronounce on whether General Motors (GM), Ford (F) and Chrysler should get state aid.

    But Obama and leaders of other countries must do their best to stem the torrent of potential beggars. This is partly because state aid will drain the public purse at a time when fiscal deficits are already high. Governments should save the little firepower they have left for really deserving cases, like the growing army of unemployed. Bailouts also distort markets: as weak companies are propped up, vibrant ones find it harder to grow.

    Ideally, governments would have made banking bailouts so unpleasant that other industries would hesitate to request the same medicine. Sadly, in most countries, this hasn’t been so. Henry Paulson, the US Treasury secretary, has been particularly lax, allowing banks to sell preference shares to the government with a dividend of only 5%. European governments have done a bit better. But only the U.K. has been adequately punitive, charging its banks 12%.

    It is not too late to do better. In Europe, some governments like Italy haven’t finalized their schemes. If they are too generous, the European Commission could send them back to the drawing board. Indeed, it is already questioning whether Germany’s bailout of Commerzbank – which includes one dollop of capital with a 5.5% coupon – is too generous.

    Meanwhile, in the US, Obama has the opportunity to distance himself from Paulson’s bailout. He can say that Paulson, an ex-Goldman Sachs (GS) boss, was far too close to Wall Street and, in any case, he was part of the ancient regime. It won’t be easy to say no to troubled industries. But doing so is a key test of leadership.

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    Re: If GM wants to continue as auto co, it should divest itself of

    “There’s big change coming in the way the U.S. develops,” said Harris at Barclays Capital, noting the nation will become less dependent on consumer spending and more dependent on investment and "exports" – a new model that will probably mean slower growth.

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    Re: If GM wants to continue as auto co, it should divest itself of

    I think the loans and bailouts should carry rising interest rates and returns for the government over time, to force/encourage more rapid payback. If Wall Street pays 5% for 3 years, 6% for one year, 7% for a year, on up to 20%, they'll get the government out of there as fast as possible, likewise others.

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    Re: If GM wants to continue as auto co, it should divest itself of

    Quote Originally Posted by Dr. Show-Me View Post
    I think the loans and bailouts should carry rising interest rates and returns for the government over time, to force/encourage more rapid payback. If Wall Street pays 5% for 3 years, 6% for one year, 7% for a year, on up to 20%, they'll get the government out of there as fast as possible, likewise others.
    Your basic premise is sound, however the Auto Industry has been losing money for almost a decade. Try this simple formula: Borrow 1 Billion dollars at 10%, Yearly interest accurals are $100 million per year. In 10 years the amount of the loan becomes 2 billion dollars, or stays at 1 billion dollars if you pay the $100 million off yearly. Now here's the problem: GM will need $50 Billion or more, now you see how much interest is involved, it's mind boggling They will never be able to pay it back. Bailout or not GM will be out of business, if done now, there will be options to re-train the displaced workers, other manufacturers will pickup the auto slack, if any.

    Also a bad precident is set for future industries that fail to conduct business prudently. NO BAILOUT!


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