Do you think GM will get a government bailout?
Answers
102 points
Shepard answered 8 months ago …
Yes and no.
It's not a "bailout". GM will receive low cost loans that they'll have to pay back over time (provided they survive). Loans, yes. Free money, no. Am I sure GM will receive these loans? Absolutly. If not from the current administration (Bush), most assuredly from the new administration (Obama).
The Democrats will not forsake one of their largest political bases: the unions. The Democrats simply won't let GM file for bankruptcy (which would be for the best) and dissolve all those punitive labor contracts.
731 points
thinker70 answered 8 months ago …
I wish i could say NO but given the socialist bent of government, political realities and economic repercussions the chances are they will receive some kind of help even if disguised. What I mean by that is there are already plans in place, or at least being kited for public reaction, that would provide government help for retooling, research and development to produce more fuel efficient cars. That could get stepped up or accelerated to prevent bankruptcies, the fly in the ointment being that the bailout plans are so MASSIVE already for the banks and mortgage sectors that there may simply not be room to include the auto sector as ALL THREE American firms are in big troublle!
What IS evident to me is that we will see horrendous inflation down the road if the FED finds a way to continue to inject more fiat money into the system when it could conceivably require TRILLIONS to stave off collapse of the whole corrupt system. IF they do it will not come without a high price to the average taxpayer.
2185 points
readytoretire answered 8 months ago …
The government already approved 25B for the auto makers to retool for more efficient cars. Now Ford, GM, and Chrysler want more and they don't want the strings that the other money has. They need plain cash to keep making cars at close to the same rate. Only problem that will make is that they will have a time to sell them as the big banks won't loan money.
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102 points
skurtti answered 8 months ago …
Yes, due to Obama but it would be better for it to file Chapter 11 and get RID of the punitive union mess.
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skurtti answered 8 months ago …
Yes due to Obama but they should file Chapter 11 and get rid of the punitive union mess that they can never get out of now. It will ruin GM totally if they continue with this "monkey on it's back". I am the wife of an engineer in the auto industry so I am going against what is best for my family but it is the only right thing to do for the future. We are throwing money down a rat hole until we get rid of the UAW contracts with all the auto makers as they are now written in stone. The union "fat cats" are scared silly that they will lose their big incomes and also lose a lot of union workers who thought that the UAW would "protect them". My husband is management so he does not like the unions.
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127 points
pauljbass answered 8 months ago …
Yes, particularly in regards to their financing arm. It does look like short term GM will get help from the feds to finance their autos for consumers.
However the bigger question is will it do any good! GM has been on a death spiral for years with management not addressing it's cost structure and marketable vehicles problems, so how is the government help going to change this?
