GM, Ford, and Chrysler Death Watch Thread

GASMON · **Posted:** Thu Jun 26, 2008 11:17 am

Ford owned Volvo to cut jobs adding to speculation that Ford is looking to sell off the business.

http://news.bbc.co.uk/1/hi/business/7473149.stm

Gasmon

misterno · **Posted:** Thu Jun 26, 2008 11:34 am

GM brands in Europe and Turkey are doing so well, the situation in North American brands is mind boggling to me

Why is it so hard to bring those cars to North America?

heroineworshipper · **Posted:** Thu Jun 26, 2008 11:46 am

There are now fewer jobs in Detroit than before European colonisation. US triumphs again.

Jack · **Joined:** Wed Aug 11, 2004 12:00 am **Posts:** 5131

Quote:

An investor who wants to buy credit protection on $10 million in GM's bonds for five years currently has to pay $2.8 million upfront and $500,000 annually for that insurance, through what are called credit-default swaps. A year ago, that protection cost only $400,000 annually, with no upfront cost, according to Credit Derivatives Research LLC.

WSJ - may require subscription

heroineworshipper · **Posted:** Thu Jun 26, 2008 11:51 am

Maybe US should throw in the towel and give Michigan back to the native Americans. 232 years of it have been so successful.

frankthetank · **Posted:** Thu Jun 26, 2008 12:32 pm

The state still has an excellent fruit growing operation. Peaches, plums, cherries, etc.

Quote:

GM market cap ($6.5B) is worth about 30% less than southwest airlines ($9.9B) (LUV) .... Right now, I think Southwest is the better investment, wow.

Quote by someone over on marketwatch. Pretty sad.

GM pretty much has to file bankruptcy? They can't afford to keep paying all those retires benefits/etc.

Fishman · **Posted:** Thu Jun 26, 2008 1:41 pm

On a health care front, failure of one of the big three may guarantee a change in the health care of the US. Remember, they are essential health care insurers who happen to make cars. Universal health care, probably. What they get now or what they expect, not a chance.

TreeFarmer · **Joined:** Tue Jun 26, 2007 12:00 am **Posts:** 520

For a good many years now it has seemed like the big three were nothing but finance companies who provided healthcare and retiree benefits via financing a few cars.

TF

Niagara · **Posted:** Thu Jun 26, 2008 2:42 pm

GM's Market Value Is Only $7 Billion—Half That of Avon

LMAO! Maybe Avon could build us electric cars. They're better positioned :lol:

frankthetank · **Posted:** Thu Jun 26, 2008 8:12 pm

OMG

Quote:

CHELSEA, Mich. - Gas prices are above $4 per gallon. Full-size pickup truck sales are down more than 21 percent through May. The U.S. auto market is in a downward funk. Great time to introduce a new pickup truck, right?

Strange as it may seem, that's what Chrysler LLC executives are thinking when it comes to the new 2009 Dodge Ram, due in showrooms by September or October.

"We're actually pretty optimistic about it," said Deborah Wahl Meyer, Chrysler's marketing chief, who adds that despite a downturn, pickups remain the largest segment of the market. "There's a large group of core people who need trucks."

...

"It's all going to come back," he said. "It's taking a severe hit, there's no doubt, and were feeling that pain right now."

Whats that about fools and money?

I say Dodge is first to go.

Eli · **Posted:** Thu Jun 26, 2008 8:33 pm

Frank there was a rumor this am that Chrysler was headed for BK.

It was later denied in a bloomberg story.

BigTex · **Posted:** Thu Jun 26, 2008 8:43 pm

I am virtually certain that GM will seek bankruptcy protection fairly soon. One of the immense benefits GM would see from this move would be that it would enable it to jettison virtually all of its retiree medical and some of its pension plan costs.

In many ways GM is the perfect candidate for bankruptcy protection, since one of the best features of bankruptcy for a company like that is it can basically reject all of its non-core contracts--i.e., all of its contracts with individuals who are no longer working.

It would also give GM the opportunity to re-negotiate all of its current agreements with union employees, which would undoubtedly mean lower wages and fewer benefits for those who did get to keep their jobs.

Why on earth did GM not see this fuel price situation coming for the last five years (at least)? I have no idea. It boggles my mind that GM just wandered down the big truck and SUV road, apparently never considering what a rapid increase in gas prices would do to that business.

Amazing.

GM, Ford, and Chrysler Death Watch Thread

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