General Motors -- hurts

ORVIL

ORVIL

Well-known member

Trading halted. No cash flow, no go.

GM is Welfare

NOVEMBER 7TH, 2008
Let’s face it our big ole famous car maker GM has devolved into a government sponsored welfare program. Clearly, their business is not a business that can survive on its own by any metric that any reasonable person can point to, so why does it still exist as an ongoing concern? Because so many people are employed there, so many people are promised pensions, etc. that to let it die will hurt the economy big time. But you know what? That’s exactly what we need! Let GM die and we will all be healthier and richer in the long run. Prop it up, keep it on life support, and its still going to eventually implode…so let it die now and save us the wasted tax dollars that will be blown on it until it finally craps out.
http://www.michaelcovel.com/
(turtle trader founder):(:)

 
Guess they won't be buying Chrysler then......:giggedy:


That leaves Renault.....Hmmmm...Introducing the new "Renault Challenger".....doesn't quite have the right ring to it....:huh:
 
So this is better?

http://www.moparnuts.com/forums/showthread.php?t=19194


If GM goes under, it's gong to hurt a lot of people. Maybe even Chrysler.

Some think that if GM goes away that will leave less competition in the market for those that are left.

True, but less competition doesn't necessarily mean more sales. You might gain market share, but the market can get smaller. A bigger piece of a smaller pie might still be less than what you're getting now.

Let's see if I can spell this out:
GM goes away.
All the auto consumers considering a GM vehicle now need to look to another brand.
But consider how many of those consumers are GM employees...
or employees of companies that supply parts to GM.
With an impending loss of employment, they might just decide not to buy at all.
That makes the market smaller. Perhaps considerably so.
New car sales are already bad. Take the number of employees that GM has out of the consumer auto market and everyone is going to feel it. Even the GM employee that drives a Toyota isn't going to be looking for a new car any time soon.

Consider too that a parts manufacturer may supply both GM and Chrysler. What happens to them if they lose one of their biggest customers? They could go under.
Those employees come off the immediate consumer auto market as well.

Then where does Chrysler get those parts? What happens to the assembly line while they figure out where to get a new supply? What happens to sales while the assembly line waits for a new supply of parts? What happens to Chrysler when sales slow up even more...

It's a great, big, ugly snowball.

I live in a GM town. Besides the three plants (or is it 2 now?), the only real industries around here are tourism & hospitality, fruit farming, grapes and wine, and I guess you could call the Welland Canal an industry around here.

But the majority of those industries rely on people coming here. With fuel costs the way they are, that doesn't happen as much as it used to and it looks like it will only get worse. Farming and the wineries produce a product that we can ship out. That's about it for the major industries.
The dry docks are busy with repairs, but they don't build there. So, the ships needing repair need to get here.

It's going to get rough around here if GM shuts things down.
 
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No your absolutly right about the snowball factor....things don't look good at all....if you look at the BIG picture.....:(:helpme:
 
less makers means less competition..which means quality doesnt need to go up and prices dont need to go down to stay competitive as well......the big picture is a hard one to look at!!!!
 
Circuit Shitty just filed chapter 11, while we're on the subject of scary financial stuff. That's nowhere near as important as GM, but it's unnerving just the same to hear that a company I've always seen around has filed. I think stuff is about to get real fucked up in our economy before it gets better.
 
If GM goes away, we're ALL in big trouble. :( Less competition will be a good thing, 'cause nobody will be buying.
 
I've been laid off for over a week now... Things are not looking good in the automotive industry, in general.
 
Jester said:
Things are not looking good in the automotive industry, in general.
Click to expand...


Not even for junk cars. They hit an all time high for value this summer, now virtually worthless. As of Friday the local bigtime crusher was paying only $10 each for car bodies, a far cry from the $300-$400 they were bringing. A local friends yard is hurting bad, he makes the majority of his money in crushing. Not sure how much longer they can keep the doors open. :(
 
Yup, scrap round here was $15-16 per hundred pounds, last I checked (6 or 7 days ago) it was $1.75/hundred. This summer you find a $500-600 beater now you can find some decent rides for that money...... This is gonna hurt for a while
 
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