Historical model for auto industry restructuring, abet tarnished

[TR_GOP]

Instead of merely throwing money at the problem (and into the hands of the BoD) perhaps a complete dissolving and consolidation into one restructured company is an option worth exploring. Granted the nation and leadership that implemented this restructuring model isn't held in high regard, but keep in mind NASA's technological groundwork was formed with captured equipment and personnel.

In the later years of the Great Depression the German car industry was on the brink of bankruptcy. By merging four failing companies into one, eliminating overlaps in management and production capacity, pushing forward the state of vehicle development, and by giving the new company a win-at-all-cost mission on the stage of international motor sport competition, Auto Union establshed an engineering legacy that survives to this day .

http://www.tamsoldracecarsite.net/AutoUnionStreamliner.JPG
http://cache.jalopnik.com/assets/resources/2008/06/auto_union_d.jpg
http://www.classicaldrives.com/50226711/D_racer_2.jpg

The company is now known as Audi, its four ring logo symbolizes the era.
http://www.carmagazine.co.uk/upload/8534/images/01AudiR8Spider.jpg

In the event Congress denies the Big 3 the requested funding instead of allowing this sector to fall into the hands of foreign powers (China has an eye on them) or a disappearance outright, perhaps a government supervised consolidation is in order. One good, solvent car company is better than three struggling ones, or none at all.

 

[Paulie]

If I was China, with all those soon-to-be even WAY more devalued Dollars I'm holding, I'd be salivating at the chance to buy those companies and actually run them properly and profit.

 

[TR_GOP]

If I was China, with all those soon-to-be even WAY more devalued Dollars I'm holding, I'd be salivating at the chance to buy those companies and actually run them properly and profit.

Over there of course, which doesn't do much for our economy. In fact it'll be a precurssor to the Greater Depression

 

[editec]

Word has it that the UAW gave concessions like it was already Christmas.

Now acording to UAW the salary levels will be about what Toyota gives for ALL employees by 2012.

Allowing this massive industrial system (manufactures of parts included) to go belly up strikes me as a terrible mistake.

As to whether these companies actually have a path to solvency remains to be seen.

I surely hope so.

The US taxpayer should become the owner of these industries, of course.

If the USA wants to sell their stocks later fine, but seems to me owning these companies, given the taxpayer is riding in on a multibillion dollar white horse to save them, is only fair.

 

[editec]

If I was China, with all those soon-to-be even WAY more devalued Dollars I'm holding, I'd be salivating at the chance to buy those companies and actually run them properly and profit.

Do you think that selling the arsenal of democracy to the Chinese communists is really a wise thing to do, Paul? Or were you just commenting that China is a potential buyer?

(I cannot believe that circumstances have so changed in my lifetime that the above sentence actually makes sense!)

 

[TR_GOP]

Do you think that selling the arsenal of democracy to the Chinese communists is really a wise thing to do, Paul? Or were you just commenting that China is a potential buyer?

(I cannot believe that circumstances have so changed in my lifetime that the above sentence actually makes sense!)

As Lenin once said,
"The Capitalists will sell us the rope with which we will hang them"

 

[editec]

That Lenin!

What a cut-up he was.

From a strictly literary sense, he was head and shoulders above Kruschev.

I mean, come on..."We will bury you"?

I often wonder what might have happened had Lenin not been shot in the head by the folks who thought he was betraying the revolution?

I doubt Stalin would have replaced him had Lenin not been basically a basket case for years before he died. That's when Stalin really gained control over things, I'm informed.

I think Trotsky might have taken over.

Well you know what they say in the former Soviet:

To each his own but Leon Trotsky has his pick.​

 

[DavidS]

If I was China, with all those soon-to-be even WAY more devalued Dollars I'm holding, I'd be salivating at the chance to buy those companies and actually run them properly and profit.

Ford may not need the money after all, but wants it just in case. I say we let Chrysler go bankrupt, and let a REAL businessman who isn't tied to the unions and the pretty-boy CEO club take Chrysler over and put some nice cars on the road for a change. Knock out Dodge and just have Chrysler and Jeep. Then do the same for GM. There are enough American businessmen who can step in and restructure GM and Chrysler. We don't need the fucking Commie Chinese to come in and pay everyone $5 an hour and make cheap cars that kill everyone.

 

[Paulie]

Over there of course, which doesn't do much for our economy. In fact it'll be a precurssor to the Greater Depression

That was my point. They would buy them and run them for THEIR profit.

You guys seem to have missed my point. I was just saying that China's probably enjoying the potentiality.

 

[BaronVonBigmeat]

Why is everyone assuming that the chinese would immediately move everything overseas? The japanese build lots of cars here. The big three do actually have great facilities in Detroit from what I understand, it's just that they have their hands tied by bad contracts and bad state laws which prevent them from shutting dealerships.

 

[Neubarth]

Chapter 11 is the only way to streamline these companies. If we want to compete, we have to help them cut their costs, and that can only be done by a Chapter 11 judge.

 

[Neubarth]

Word has it that the UAW gave concessions like it was already Christmas.

Now acording to UAW the salary levels will be about what Toyota gives for ALL employees by 2012.

Allowing this massive industrial system (manufactures of parts included) to go belly up strikes me as a terrible mistake.

As to whether these companies actually have a path to solvency remains to be seen.

I surely hope so.

The US taxpayer should become the owner of these industries, of course.

If the USA wants to sell their stocks later fine, but seems to me owning these companies, given the taxpayer is riding in on a multibillion dollar white horse to save them, is only fair.

Chapter 11 does not require a sale of the company. The Chap 11 Judge just cuts all the costs and allows the company to come out of bankruptcy fully functioning, Lean and Mean so they can produce a $6000 car that is economical and inexpensive compared to foreign competition. It can be done.