Big Three Bailout or Carpocalypse - Garage419

This says it all: http://img369.imageshack.us/img369/6012/bailoutyk2.jpg

When I get my Federal Bailout for my college bills, they can get theirs for their stupidity. I don't care about Chrysler, I don't think I would ever want to buy a Chrysler anything. GM and Ford, if they need a bailout to get their European stuff to the US, fine. Ford might not be in this position if they offered us the good stuff like an unmolested Mondeo (looking at you Ford FiveHundred), the Focus RS and the Fiesta and Ka. I wonder who paid for gas when the CEO's drove to DC...

Matt...You take over Chrysler and show them how to make a REAL CAR!!!

I agree with the bailout and the notion that it needs to happen. Ford has a good game plan and GM seems to also be able have a view for the future, Chrysler just needs to die. I drove the Sebring to NY last week and it damn near killed me numerous times. If that is the product that they put out there then no money for them......they suck. A different point though that many dont look at is the trade inequities that the Big 3 have to compete against. Korea, Japan and Europe to some extent can dump cars here by the boatload without paying any meaningfull tariff or tax. The Big 3 can only export 5-10K cars to those countries per year at a much higher tax rate making them unattractive. Now if Hyundai had to deal with real trade laws would the Big 3 be in this position? Also dont forget that foreign companies also have nationalized health care thus making it cheaper to produce those cars too. In no way do I want to make excuses for the crappy cars Detroit has made, just there is more than one side to this story.

Why do we have to bail these idiots out? What did I do wrong? Why can't we let these companies go into Chapter 11 bankrputcy and reorganize their debts? Why can't GM get their head out of thier behinds and realize the only way to survive is to kill the unions, get rid of generous healthcare plans, kill 80% of thier product line and re-emerge from the ashes? Why can't Ford and GM just bring over European cars? What about diesel engine cars? Honda has a european diesel Accord that gets over 55MPG. Why can't the big 3 sell diesel cars here? Why electric's and hybrid cars? Does anyone beside me, Matt Farah, and my fellow Jalopnik's know that hybrid's and electric cars are dead?

* 'Bien venue!' Vous etes polyglot garkon! :D I would like to add another dimension of possibilities to this. One scenario many people focus on is if we dont giv em the $, the world ends, massive layoffs{1 in 10}, etc. HOWEVER, imagine if you will, using a fraction of the $ to lend to FISKER, TESLA, etc? $1B each say. Its not like u terminate someone from employment for eternity. Perhaps it may be only a few weeks until they relocate if necessary to take up new work with more efficient, long term product & strategy? Products with a future & free of 100 year fat & lethargy. Bumper 2 bumper warranty is about 3 yrs right? After 100 years, Im sure GM can predict its warranty costs to within 1% accuracy. This could even be outsourced to 3rd parties. These costs are built into the sale price. I would be happy to buy the vehicle clean & naked without any built in costs. Warranty has always been such a hassle anyway. Take a NA auto manufacturer, ie GM -{UNION} -{HEALTH BENEFITS} -{LEGACY PAYMENTS} -{PENSION PLAN} It is quite conceivable if we could have removed all the parasytic losses, the company could very well have been not only competitive, but profitable as well. If it was late 90's, early 2000 & I was Wagoner, I would have subcontracted the WARRANTIES, -> CH 11 -> NGM 2.0! Average salary China? $97/month! UNIONS should never have existed in the first place! How much $ should the DEALERS GET?

Where is my bailout? Man…it is a gun to the head! Do it, or all Americans will suffer! The jobs on the line and "certain" local economies in crisis, all due to the Carpocalypse! I guess we have to bailout GM and Ford, plus give tough conditions to GM in order for them to receive their payment (you know, what everyone has strongly agreed upon, from this website to US congress). In the end, I really hate this, I know if given time and restructing they would do what all companies doing; wait and surive. I want to see people who got screwed through no fault of their own, such as, home owners get assistance. I want to see student loans wipedout; this alone will free up millions of dollars per-year in Canada and the US. Recently graduated people, or people struggling to pay over decades can then put more money put back into the economies. In most cases people will average 400-500$ a month in savings. For example, that equates to a car payment for the big three…more people buying cars is what they want right? Electronics, food, houses, toys and basically all consumer products will see big sale jumps. There are millions of people who can’t buy products due to high mortgage and student loan payments. If people want the “economy” to pick up, fixing the car instustry is the stupidest and last thing one can do to helpout. Free up money in the hands of the consumers…we can fix the prolem in under one year, if truly freeing up cash flow was the number one priority? I have no faith in governments anyhow (since the bailouts go to the morons in the banks who caused the problems, plus large failing indtrusties, who do not control the economic market). I still see GM’s timing on this issue as fishy, they have been in the dumpsters for the last 8 years or more. They have made no effort to properally re-structure in the last 15 years. Why should we bail them out now? Oh ya, the gun to the head thing! Once again, put money into our hands and you will see actual changes in the economy, not just rich corp's/banks getting richer…

I think the big three need to learn a lesson and not get a bail out. Bailing out the financial sector did nothing and I don't think bailing out the car industry will help either. A lot of people are going to lose their jobs but it will help get the unions to change their ways and make it so they can make cars and not pay off someone’s retirement pension

QOD I think the big three should get the money they need only and only if the show that they are going to punish the idiots who brought them to this condition besides a good sales plan and whatever else they need to do. I give props to ford for selling all of their jets and I think Chrysler and GM should be forced to do so also. Their F***ing CEOs can fly first class the least.

Shows how fast this issue is moving. Heaps of new info has come out since this was compiled and uploaded... QOD: Chrysler should get the money only on the condition that Cerberus actually make the real effort to to make the Company viable. If that means shrinking the company down to one or two cars per division for the foreseeable future and focusing on them, then so be it. Failing that, Sell the division off individually and cash your chip. GM needs to lose a LOT of weight before they should get the money. Over burdened divisions need to be stripped down to their core requirements. Chevrolet, by far, has more products on its roster than any other division and they are mostly rehashes of better products in other divisions. The Chevy Trucks are a big example of this. Everyone knows GMC makes the better trucks. Holding each division to their declared mission would be helpful as well. FORD says they only want their bases covered, let them have their lines of credit.

I normally love the commentary from this show and others like it (jalopnik) but Ray Wert just comes off like a smug bastard. The way he talks it looks like it hurts. Oh, and AIG never went to Aruba, I know you guys are trying to factually and entertaining but this was a poor effort.

The only company that does not deserve the money is chrysler. The only car that is "good" is the viper, but if i had 80k i wouldnt buy it. The 300c is good, but only if ur too poor for a caddy, or a Mercedes. Ford should get the money, only if they bring the Euro cars over. The Euro focus,fiesta are very good car, i been to london and drove a euro focus rs and it was one of the best handling car for its price. GM is huge, they need the money, without the money Americans that make their living from the car industry will die.