A few weeks ago, CEOs from Detroit’s Big Three flew to Washington in their private planes asking for $25 billion. They were ridiculed for flying private jets and Congress sent them home, demanding they needed a comprehensive plan to even consider loaning this kind of money to the automakers. They came back yesterday, making the 500+ mile road trip in hybrid cars, with a $34 billion plan. Let’s check out what these plans have to say. From Chrysler’s Plan: Providing Cars and Trucks People Want to Buy. “ Now that’s …
Heritage Senior Research Fellow James Gattuso explains what happens when bankruptcy is declared and why it is a better option for Detroit Automakers [youtube]http://www.youtube.com/watch?v=6wKGODqsZ2o[/youtube]
When I think of bankruptcy I think of this. That’s right, the Monopoly Guy. Pockets empty. Shoulders shrugged. Game over. All the jobs will be wiped off the face of this earth and bulldozers will tear down the buildings. I’m guessing a lot of people think this way when they hear this word. Rich Wagoner, Chief Operating Officer of General Motors, seems to think this way. He recently declared that, “We are convinced the consequences of a bankruptcy would be dire and extend far beyond General Motors and therefore we …
According to the latest news, the only obstacle remaining to complete a merger between General Motors and Chrysler is $10 billion in taxpayer money. Jui Chakrovorty Das and Kevin Krolicki detailed that GM and Cerberus Capital Management, the owner of Chrysler “have resolved the major issues in a proposed GM-Chrysler merger, but the final form of any deal would depend on the financing and government support available.” The full breakdown of the $10 billion but it has been reported that GM and Chrysler would have the Treasury invest $3 billion …
General Motors wants to merge with Chrysler. Doesn’t sound so bad, right? Turning Detroit’s Big Three into the Big Two might be just the remedy for an ailing U.S. auto industry. Maybe not. But that’s not the problem. The problem is how GM is proposing to merge with Chrysler — asking me and you to pay for it. Chief Executive Officer Rick Wagoner is leading the plea to Congress and the Treasury for $10 billion to complete the merger with Cerberus Capital Management, the owner of Chrysler, that would assist …
Almost 30 years ago, a steep rise in oil prices drove consumers to buy smaller, more fuel-efficient cars. Cars that American auto manufacturers simply didn’t make. The resulting huge drop in sales drove Chrysler to the brink of bankruptcy, but before the market could play itself out, President Jimmy Carter came in “rescued” Chrysler with $1.2 billion in loan guarantees. At first glance it may appear that Chrysler was saved from bankruptcy. But a closer examination of the record shows that even with the loans, Chrysler went through a quasi-bankruptcy. …
