GM Makes its Case to Americans; Admits Mistakes

[WillowTree]

General Motors (GM: 4.78, +0.70, +17.16%) needs $18 billion from the government and taxpayers and wants the American people to know why.

In an open letter titled “GM’s Commitment to the American People” which ran in Automotive News, a trade journal ready by industry executives, lobbyists and other insiders, the beleaguered car maker candidly acknowledged it has disappointed U.S. consumers and pledged to do better. It said recent strides to improve the company have been hurt by the economic downturn, which is why it needs the loans.






At times we violated your trust by letting our quality fall below industry standards and our designs become lackluster,” wrote GM. “We have proliferated our brands and dealer network to the point where we lost adequate focus on our core U.S. market.” What’s more GM said it wrongly focused on pick-ups and SUVs over other brands and as a result “paid dearly.”

GM Makes its Case to Americans; Admits Mistakes - FOXBusiness.com





GM just needs to get the hell outta dodge.. pardon the pun..

 

[revolutionary]

I personally will never advocate a bailout unless somebody can make sense of it to me. If we loan GM the money how can they pay it back if they continue on the road they're going. Also, why save jobs if the business is just going to fail and the people are going to lose them anyway. It is completely unfair to place the burden of bad decision making and greed on the American taxpayers. Especially when you think about if you owned a business that was failing would you get bailed out? Didn't think so. However, filing for bankruptcy would be their best option in my mind. They would be forced to re-negotiate their employee contracts and eliminate the unions which have plagued American capitalism. Why do businesses go over seas? Because unions demand so much from them and the government doesn't help with their taxes either. No business is going to run properly when they pay more in salaries, benefits and taxes than they receive in profit. Not saying the ceo's aren't at fault either, they need to be checked as well.

 

[user_name_guest]

Americans then should vote for this then. Let's see if GM or any of the other Big Three can get 50% of the vote. Majority of Americans, not our representatives, should decide. It's the taxpayers money, not Washington.

 

[revolutionary]

Americans then should vote for this then. Let's see if GM or any of the other Big Three can get 50% of the vote. Majority of Americans, not our representatives, should decide. It's the taxpayers money, not Washington.

Kudos my fellow patriot

 

[Neubarth]

GM is totally insolvent and should file for bankruptcy!
Until they do that, it would be insane for the government to loan them money.

As of midyear, GM had total assets of $136b and total liabilities of $191b, a $55b deficiency.

That in my book says that GM is insolvent. How can GM ever repay a MULTI BILLION DOLLAR BAILOUT?

As of June 30, 2008, its current liabilities were $70b, dwarfing its current assets of $55b. Moreover, we do not know what deals GM has made to stretch/defer repayment of its account payables.

IF WE GIVE THEM THE MONEY THEY ARE BEGGING CONGRESS FOR, THE ONLY THING THAT WILL HAPPEN IS THAT SOME RICH REPUBLICANS WILL GET SOME MONEY AND THEN GM WILL DECLARE BANKRUPTCY ANYWAY

Say after me, 'NO BAILOUT! NO WAY!

 

[Neubarth]

The corrupt Democrats who receive money to run their campaigns from the Big Three and the UAW are now being asked to get some free Government money doled out to the automakers.

We urgently need to tell Congress that as long as the GM and Chrysler have already proven that they can not compete against the Japanese and Korean companies in making a cost effective car, it is time to kill the the old companies.

They are doomed to fail anyway. Might as well get if over with and rebuild new companies from the ashes. AFTER a Chapter 11 filing. The labor pool is there. Let's put them to work at lower pay scales building economical AMERICAN cars.

 

[Neubarth]

We need to make it absolutely clear to GM that there will be no free money until AFTER they have restructured under Chapter 11. They have got to get out from under the oppressive UAW contracts. Until then, we will just be wasting money.

Call you senator and tell him to filibuster this insane legislation. Chapter 11 first so our money is not thrown down a dark hole.

 

[dilloduck]

Americans then should vote for this then. Let's see if GM or any of the other Big Three can get 50% of the vote. Majority of Americans, not our representatives, should decide. It's the taxpayers money, not Washington.

OMG NO----We have to put up with enough campaign bullshit already. How about we just come up with a faster way to replace our Congressmen when they fuck up. At least it would be done locally.

 

[Zoomie1980]

Americans then should vote for this then. Let's see if GM or any of the other Big Three can get 50% of the vote. Majority of Americans, not our representatives, should decide. It's the taxpayers money, not Washington.

We do not live in a pure Democracy. Our form of government is a Representative Democracy. Look it up.

 

[Munin]

Why do businesses go over seas? Because unions demand so much from them and the government doesn't help with their taxes either. No business is going to run properly when they pay more in salaries, benefits and taxes than they receive in profit. Not saying the ceo's aren't at fault either, they need to be checked as well.

"Why do businesses go over seas?"

It is because in some Nations, there exists something that can be compared with slavery (from the past). Instead of getting just enough in food & water to survive (like back in history) now they re getting the equivalent in money, other then that the people re treated like shit in those countries: they got no pensions, no healthcare, nothing except a miserable small amount of money for their labor. That s the biggest problem why businesses go over seas. Making unfair competition for modern nations who treat their population with "respect" and not as slaves. The only way americans can compete with them is to become slaves themselves or maybe to replace the people in the industry by machines that re cheaper then the slaves from the east.

 

[editec]

Would GM be bankrupt if there were no liquidity crises?

 

[irie]

"Why do businesses go over seas?"

It is because in some Nations, there exists something that can be compared with slavery (from the past). Instead of getting just enough in food & water to survive (like back in history) now they re getting the equivalent in money, other then that the people re treated like shit in those countries: they got no pensions, no healthcare, nothing except a miserable small amount of money for their labor. That s the biggest problem why businesses go over seas. Making unfair competition for modern nations who treat their population with "respect" and not as slaves. The only way americans can compete with them is to become slaves themselves or maybe to replace the people in the industry by machines that re cheaper then the slaves from the east.

I'll bet when Obama raises corporate taxes they'll stay home. LMMFAO

 

[editec]

I'll bet when Obama raises corporate taxes they'll stay home. LMMFAO

Good point.

However, Obama is making noises that sound vaguely like he's rethinking the whole FREE TRADE policy, so possibly we might start trying to prectice something like FAIR trade for a change.

Corporations leave because it's cheaper to make stuff offshore.

Take away that incentive and they stay.

It's fairly simple, really.