GM to invest 450m in Argentina to manufacture a global Chevy vehicle

Discussion in 'Blazers OT Forum' started by PapaG, Oct 26, 2012.

Moderators: 6

Moderators

  1. BrianFromWA
  2. Chris Craig
  3. Darkwebs
  4. Ed O
  5. PtldPlatypus
  6. SlyPokerDog
Page 2 of 2
  1. DaLincolnJones

    DaLincolnJones Well-Known Member

    Joined:
    Mar 11, 2011
    Messages:
    8,319
    Likes Received:
    1,886
    Trophy Points:
    113
    no, not at all GM still had GM finance. Very profitable. Hummer, All the military contracts alone were going to be able to keep GM afloat. Takeing the bailout monies was to make things "easier" for the company.

    I know that Ford was on the fence, but took the loses, closed plants, dropped platforms, etc. Lost Mercury, almost lost Lincoln Ford finance was hard hit.
     
    DaLincolnJones, Oct 26, 2012
    #21
  2. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

    Joined:
    Sep 15, 2008
    Messages:
    34,388
    Likes Received:
    25,448
    Trophy Points:
    113
    Location:
    Blazer OT board
    Ok, that's just nuts. "GM was in fine shape, they didn't need a bailout or bankruptcy". Sure.

    Sure. Anyone who has ever done business with the federal government - and GM had done plenty - would know it wouldn't make things easier.

    GM didn't do it because the government offered them a great deal. They did it as a last resort, because they hadn't planned for the economy to collapse in 2008 and were caught with their pants down.
    Ford survived because they had the foresight or luck to borrow a ton of cash just before the crash.

    barfo
     
    barfo, Oct 26, 2012
    #22
  3. PapaG

    PapaG Banned User BANNED

    Joined:
    Sep 23, 2008
    Messages:
    32,870
    Likes Received:
    291
    Trophy Points:
    0
    Location:
    Tualatin, OR
    Irrelevant, at least how it pertains to a normal bankruptcy filing. Obama needed to keep his union friends like Trumka happy. Now, GM is nearing another bankruptcy, and hopefully President Romney doesn't fuck over the private bondholders this time.
     
    PapaG, Oct 26, 2012
    #23
  4. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

    Joined:
    Sep 15, 2008
    Messages:
    34,388
    Likes Received:
    25,448
    Trophy Points:
    113
    Location:
    Blazer OT board
    Sorry, what was irrelevant?

    Oh, right, your post.

    barfo
     
    barfo, Oct 26, 2012
    #24
  5. PapaG

    PapaG Banned User BANNED

    Joined:
    Sep 23, 2008
    Messages:
    32,870
    Likes Received:
    291
    Trophy Points:
    0
    Location:
    Tualatin, OR
    Har har har.

    You got me!! DERP
     
    PapaG, Oct 26, 2012
    #25
  6. maxiep

    maxiep RIP Dr. Jack

    Joined:
    Sep 12, 2008
    Messages:
    28,303
    Likes Received:
    5,884
    Trophy Points:
    113
    Occupation:
    Merchant Banker
    Location:
    Denver, CO & Lake Oswego, OR
    GM didn't have a revenue problem; they had an expense problem, specifically in labor and legacy costs. Emerging from Chapter 11, I-banks would have lined up to sponsor an equity issuance.
     
    maxiep, Oct 26, 2012
    #26
  7. maxiep

    maxiep RIP Dr. Jack

    Joined:
    Sep 12, 2008
    Messages:
    28,303
    Likes Received:
    5,884
    Trophy Points:
    113
    Occupation:
    Merchant Banker
    Location:
    Denver, CO & Lake Oswego, OR
    I would argue I understand the situation faced by investment banks during that period and I couldn't disagree with your position more fundamentally.
     
    maxiep, Oct 26, 2012
    #27
  8. NOVoodoo

    NOVoodoo Kickin it in 2525

    Joined:
    Jun 28, 2012
    Messages:
    2,057
    Likes Received:
    51
    Trophy Points:
    48
    Location:
    Tennessee
    Interesting timing. This is a knee-jerk reaction to Ford Motor Company's decision for global manufacturing platforms, a decision that was made some time ago. The efficiency and results of Ford's manufacturing strategy saved their asses during the crisis (as well as some other well thought out moves by Mulally, such as simplifying their core brand complexity). So now GM wants to do the same thing. The only difference is, GM has accepted federal bail-out money, and Ford did not. Why would GM decide to do this right around the election?

    (Also, I encourage those of you who are aware of the government bail-out situation but not aware of the extent of its impact on the competitiveness of the American automobile industry to check out the government's involvement with the Chevy Volt.)
     
    Last edited: Oct 26, 2012
    NOVoodoo, Oct 26, 2012
    #28
  9. PapaG

    PapaG Banned User BANNED

    Joined:
    Sep 23, 2008
    Messages:
    32,870
    Likes Received:
    291
    Trophy Points:
    0
    Location:
    Tualatin, OR
    That's not the "only" difference. UAW's pensions were saved in the GM bail-out, and private citizens, including mutual funds tied to 401ks, took the loss.
     
    PapaG, Oct 26, 2012
    #29
    NOVoodoo likes this.
  10. DaLincolnJones

    DaLincolnJones Well-Known Member

    Joined:
    Mar 11, 2011
    Messages:
    8,319
    Likes Received:
    1,886
    Trophy Points:
    113
    I guess that sounds better than me saying that they were getting fucked by the unions, lol
     
    DaLincolnJones, Oct 27, 2012
    #30
  11. DaLincolnJones

    DaLincolnJones Well-Known Member

    Joined:
    Mar 11, 2011
    Messages:
    8,319
    Likes Received:
    1,886
    Trophy Points:
    113
    and now the unions have stock as part of the bailout, hello fox, here is the hen house key....
     
    DaLincolnJones, Oct 27, 2012
    #31
  12. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

    Joined:
    May 24, 2007
    Messages:
    72,978
    Likes Received:
    10,673
    Trophy Points:
    113
    Occupation:
    Never lost a case
    Location:
    Boston Legal
    How on earth did the USA survive Edsel going under?

    Seriously, though, loan guarantees by the govt. would have made a private sector style bankruptcy work. It's worked numerous times in the past, even with bank sector collapses in progress.

    People either forget or ignore the fact that 9/11 was a major hit to a number of our banks and markets. After the terrorists used airliners as bombs, nobody wanted to fly for business or pleasure. The insurance companies didn't want to insure airline flights. The airlines and companies that built airplanes or suppliers of anything related all suffered greatly. A bailout ensued - $15B, $5B of direct aid and $10B in loan guarantees.

    Since 9/11/01, airlines have filed for reorganization (bankruptcy) FORTY times.
     
    Denny Crane, Oct 27, 2012
    #32
Page 2 of 2

Share This Page