Quote:
Originally Posted by garagelogic
Okay, now, if that is the case, why are the private equity firms not chomping at the bit to loan them the money they need? See, you can provide me with 100 things that you feel the company is doing/going to do, but apparently none of the people that are in a position to help GM share the optimism, believe the rhetoric or they simply know more than you and I ever will about the true state of affairs at the big 3.
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Why aren't people loaning money to GM, etc? You got me
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By asking that question, though, you're mixing in a whole extra industry and their motives + abilities. I mean, how many private equity firms are in a position to freely loan out $25 billion or more to a high-risk venture in this current economy? How many private companies are willing to take that sort of a risk on such a behemoth of a company? (If you or I were in a position to do so...would we??) I doubt it's their business plan that's deterring them...but the fact that they are, in any event, losing money hand over fist and can't seem to stop the bleeding.
I don't know the exact figures...but the market has decreased from 17 billion cars to below 12 billion in not much over a year!!! Holy-crap!! That's like removing 30% of your paycheck next year without telling you. Good Luck!
The ONLY thing that is going to save them, imo...is a better economy and an improved car market because of it. This loan should be used to tide them over to that point...again,
in my opinion....