Big 3 CEO's (and UAW CEO) answering questions on CNBC (yesterday)

[Camaro_Corvette]

Originally Posted by dieseldave24v

I think I need to run for a seat in congress. I have been truley dissapointed by the represention today. Not just on the Issue of GM, but in general. The uninformed people making descisions on my behalf. It scares me as an American.

+1 EDIT:+2

[stovt001]

Originally Posted by diddiyo

what I mean is this:

on one hand people are like "buy american, support GM and their employees!" and on the other hand they're all "damn, those people working for GM are being paid way too much!"

now i'm not saying i like toyota, but you can't bash them all the time and then all of a sudden point at them as a reference for how GM should handle its business. that doesn't exactly go hand in hand in my opinion.

Not at all. I prefer American cars and I think we should support American business, but the foreign manufacturers manage their business well. Having a good product is not the same as having a good business. The fact is, I like American cars, but I don't like that the Detroit workers are getting paid far more than other automotive workers to produce cars that for a very long time lagged in build quality. I think there are a lot of problems with how the domestic auto businesses are run. Sadly, the law makes it nearly impossible to change those things.

[GOLDDOG]

I was wondering how everyone has been reacting this week to the congressional hearings that seem to definitely not be in favor of the bailout whatsoever. Has this new round of talks have you thinking twice about ordering a car from a company that may not be around. I know its been discussed before how GM can't fail, but it is not looking good for them at all.
Just looking for your opinions.

Has this new round of talks have you thinking twice about ordering a car from a company that may not be around?

I am not looking for opinions on the talks, just the question above.

[dieseldave24v]

Damn I thought this one was going to go on all night......

[Scott@Bjorn3D]

Looks like I will be keeping the Honda. I don't think there will be a Camaro made.

[Inspector 17]

Originally Posted by Scott@Bjorn3D

Looks like I will be keeping the Honda. I don't think there will be a Camaro made.

Oh, don't start already. Have some faith.

[SS One]

This may not the place for this, but since you all started it...
The overall economic effect if GM were to go “out of business” would be catastrophic, and would possibly cause Chrysler and Ford to fold shortly thereafter. I had read these statistics in an article a few days ago, (I’ll try to find the link). GM directly employs 123,000 people and owes Delphi and American Axle a significant amount of cash; so if GM goes, so does Delphi and American Axle. The mid-West alone could lose approximately 3 million goes if GM goes. If Chrysler and Ford were to go out of business as well, that would be another 240,000 direct jobs. The Big 3 also supports employment for another 974,000 jobs through suppliers, etc. and 1.7 million jobs are created by the money that the employees of the Big 3 and employees of the supporting companies spend. This all adds up to about six million jobs. Lost jobs equals lost revenue to the Federal, State and local governments, and this would be something like 156 BILLION dollars over three years.

Add to this the unemployment benefits to be paid for all of the people that would lose their jobs and that would be another 2-4 BILLION. Our elected officials need to wake up and figure that a measly 25 million LOAN is a very small investment to make to avoid the multiple BILLIONS that they would have to spend if GM, Chrysler, and Ford should fail. (remenber this next election!)

I don’t believe that we should set a precedent that we, the American people, should bail-out every business that falters due to bad business practices and poor management, but the loss of GM would not be just another business failure; it could possibly be last economic straw that pushes this country into another depression that could be more globally far-reaching than the “Great Depression”

Just my $0.002 – Let's hope and pray that GM pulls through this.

[Inspector 17]

People, people, people. Come on now. First, I don't particularly want GM, Ford or Chrysler to go out of business. Second, I especially don't want GM to go out of business because I would like to get my Camaro. Third, those statistics that everyone keeps throwing around - like $156B, 212,000 jobs affected, etc - are automobile industry provided figures. We are all taking them at face value. Who has confirmed them? Finally, when the S&L crisis happened in the '80s and '90s, over 700 S&Ls collapsed. The estimated cost to the US was over the $156B quoted to be the cost if GM goes out of business - $160.1B lost. There was a recession, but the world didn't end. The US didn't collapse. And we all managed to come out of it. So everyone calm down. Have a nice drink and wait to see what happens.

[Scott@Bjorn3D]

Originally Posted by camaropete

Oh, don't start already. Have some faith.

I am praying they make it. Don't get me wrong. But Congress and the Senate are idiots. They gave AIG tons of money, over 100 Billion to date and they won't save the Big 3. They are just stupid. AIG is corrupt and full of crooks and they do nothing about it but slam the auto industry. I am just frustrated at this entire mess.

[PsyDoc]

Originally Posted by SS One

This may not the place for this, but since you all started it...
The overall economic effect if GM were to go “out of business” would be catastrophic, and would possibly cause Chrysler and Ford to fold shortly thereafter. I had read these statistics in an article a few days ago, (I’ll try to find the link). GM directly employs 123,000 people and owes Delphi and American Axle a significant amount of cash; so if GM goes, so does Delphi and American Axle. The mid-West alone could lose approximately 3 million goes if GM goes. If Chrysler and Ford were to go out of business as well, that would be another 240,000 direct jobs. The Big 3 also supports employment for another 974,000 jobs through suppliers, etc. and 1.7 million jobs are created by the money that the employees of the Big 3 and employees of the supporting companies spend. This all adds up to about six million jobs. Lost jobs equals lost revenue to the Federal, State and local governments, and this would be something like 156 BILLION dollars over three years.

I would not be surprised if these figures also included auto parts stores and employees, automatic and coin operated car washes, gas station employees, automotive aftermarket companies, or any other business remotely tied to the auto industry in some way. No offense, but some of these figures remind me of companies who report losses...on paper only. While watching the hearings, one part of me thought...how arrogant the Big 3 are...save us or else the U.S. will implode.

I believe someone took GM (I believe) to task about the closing of a couple of plants in the U.S. that would leave thousands of Americans unemployed, but they had plans on building one or two in other countries. Because they employed a good number of people in those other countries, they were asked whether they had gone to the Mexican or Chinese governments and asked for a bailout. The answer was something along the lines of "No we have not. We are quite profitable there."

[Mr. Wyndham]

Originally Posted by camaropete

Third, those statistics that everyone keeps throwing around - like $156B, 212,000 jobs affected, etc - are automobile industry provided figures. We are all taking them at face value. Who has confirmed them?

no...they aren't. They're just quoting them because it helps defend their side. A third party conducted a study to estimate what the impact would be if one of the big three ceased operations...That's why this is such a big deal. There are very REAL consequences should the Big Three fail. Which is what will happen should they declare chapter 11.

FINALDetroitThreeContractionImpact_3__001.pdf

Originally Posted by camaropete

Finally, when the S&L crisis happened in the '80s and '90s, over 700 S&Ls collapsed. The estimated cost to the US was over the $156B quoted to be the cost if GM goes out of business - $160.1B lost. There was a recession, but the world didn't end. The US didn't collapse. And we all managed to come out of it. So everyone calm down. Have a nice drink and wait to see what happens.

Was the economy already in a recession when that occurred? Since that's what we're facing here...things might turn out worse than what happened then. And our dipsh!t 'leaders' have a chance to pay 25 billion (and get it back) now or pay 160 billion out-of-pocket later...why is this such a tough decision for them to make?

Finally, this isn't a bunch of fraudulent banks we're talking about. This is the US auto Industry. Small startups cannot recreate the massive volume the three have right now overnight -- and they especially don't stand a chance against the likes of Toyota + friends. But we NEED that Industry.

And just a side note...calming down and sitting by watching the economy (and ultimately the country) fall apart is exactly what got us into this. I, for one, am not content to sit by and watch all of this implode.

[dayvedayve]

The total benefits include healthcare. When the healthcare is provided free of charge for all citizens by the government, why would a business need to pay for it and include it. Why dont they show a true comparrison. Chart makers are very nice but are only as good as the info in front of them

[kanys]

Originally Posted by Dragoneye

Finally, this isn't a bunch of fraudulent banks we're talking about. This is the US auto Industry. Small startups cannot recreate the massive volume they had overnight -- they don't stand a chance against the likes of Toyota + friends. And we NEED that Industry.

I hate to say it but I strongly believe that GM and the other two need to start operating like Toyota and Honda and all them. Just looking at the numbers there is something wrong with the way they are doing business, and it seems a large problem is workers. If they want to keep their jobs they are going to probably have to settle for lower wages for a time. Yeah I guess it is easy for me to say that since I am not in the auto industry, but I would fully support a tax raise as long as it went towards really important stuff like the American auto industry, and as long as I knew they would spend my tax dollars effectively. As of now I do not believe that to be true, hopefully they can change my mind soon, and the government's.

[The_Blur]

Originally Posted by kanys

I hate to say it but I strongly believe that GM and the other two need to start operating like Toyota and Honda and all them. Just looking at the numbers there is something wrong with the way they are doing business, and it seems a large problem is workers. If they want to keep their jobs they are going to probably have to settle for lower wages for a time. Yeah I guess it is easy for me to say that since I am not in the auto industry, but I would fully support a tax raise as long as it went towards really important stuff like the American auto industry, and as long as I knew they would spend my tax dollars effectively. As of now I do not believe that to be true, hopefully they can change my mind soon, and the government's.

I wish Congress watched this forum like GM does.