Rumors In the Car Business

Discussion in 'Current Events' started by Navy1960, Nov 12, 2008.

  1. Navy1960
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    Navy1960 Senior Member

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    By Jui Chakravorty Das and Kevin Krolicki South Korea's Hyundai Motor Co has had talks with Chrysler LLC owner Cerberus Capital Management about a potential acquisition of the U.S. automaker's Jeep brand and possibly other assets, people with knowledge of the talks said on Friday. The emergence of Korea's largest automaker as a potential bidder for at least part of Chrysler comes on the same day General Motors Corp said it shelved its own pursuit of an acquisition of its.

    Hyundai and Chrysler in talks as GM pulls out - Worldnews.com

    South Korea's Hyundai Motor Co on Saturday denied its interest in Chrysler's assets, adding it had no capacity for a new acquisition as it focused on completing construction of overseas plants.

    Hyundai Motor denies interest in Chrysler assets - Worldnews.com

    The rumors are flying since GM has lost in it's efforts to convince the Federal Govt. to lend it the money to buy Chrysler. Nissan earlier had made an effort to purchase Chrysler but that deal fell through as well. It would appear that Chrysler's only hope now is a Federal "bailout" otherwise they are on their own. I don't see the option of a car company or any company for that matter the size of Chrysler or GM going into Bankruptcy, it may be the best thing for these companies in the end, they might emerge from it as leaner and more efficient companies and better able to compete in the Market. Yesterday, Car and Driver reported that the average GM automobile containe 1800.00 dollars of built in healthcare cost for UAW employee's while the average Toyota contains 110.00. The facts are these companies GM, Chrysler, and Ford can point to their own demise by their complete mismanagement, poor engineering, poor marketing, and the inability to respond to slow markets and having large inventories of cars and truck in place in an economic downturn that do not suit the needs of the market. Further adding to that demise, is the massive burden these companies are saddled with in Union pension and benefit funds. While I don't blame the Union's for receiving these benefits, it is ultimately the company that say's yes or no if they will pay them. While this may seem simplistic, had the American Auto companies has the ability to say NO and had more interest in competing and producing a good product then perhaps they would not find themselves in such dire straights. While I am not a fan of absolute Unionization in this case for the the companies to up and just say it's all the Unions fault is a baseless argument, when ultimately they are the ones that agree to the terms of employment.
     
  2. PoliticalChic
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    PoliticalChic Diamond Member

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    I think in the coming weeks and months, the definition of capitalism will need to be redefined. The government will not let the U.S. car industry fail.
     
  3. WillowTree
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    WillowTree Diamond Member

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    honey the US car industry failed a long time ago,, shoddy overpriced fall apart products sank them.. it's no ones fault but their own.
     
  4. Navy1960
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    Navy1960 Senior Member

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    While I think the best thing in the world that could happen to Ford, GM and Chrysler would be for them to go into Bankruptcy. Yes, it would be hard for a long time for many to accept, but in the end one or two or maybe all of them will emerge much better able to compete than they are today. However , being realistic here congress will never let that happen and will most likely bail them out and lend credence to the long time crappy business practices of these companies. The real sad part of this is , that GM and Ford both have some amazing cars that they have not brought to market yet, plug-in hybrids, electric cars etc. How long did GM work on a HFCV Fuel Cell Car? and promote it? It seems it was a long time, and guess which company is introducing the first Fuel Cell Car to the Market? That would be Honda.
     
  5. xsited1
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    xsited1 Agent P

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    The Democrats will save the Unions, er, auto makers. You can take that to the bank.
     
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  6. Navy1960
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    Navy1960 Senior Member

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    Congress and the Bush administration must take immediate action," she added. Administration officials have concluded that the bailout bill that passed earlier does not permit loans to the auto industry, but lawmakers are expected to return to the Capitol for a brief postelection session beginning next week.

    Senate Majority Leader Harry Reid, D-Nev., also supports help for the industry, and he issued a statement saying Democrats were "determined to pass legislation that will save the jobs of millions" as part of a postelection session.

    "This will only get done if President Bush and Senate Republicans work with us in a bipartisan fashion, and I am confident they will do what is right for our economy," he said.

    http://www.mercurynews.com/business/ci_10956672

    I have to believe your right about the auto companies.
     
  7. WillowTree
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    WillowTree Diamond Member

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    they may try, but Americans aren't stupid. well 48% of us anyway.. I buy Toyota.. the last American car I bought was a Mercury cougar. now I loved that car, but It was always needing repairs. I have an 8 year old Toyota which has never been to the repair shop.. I'm sold. Buy Toyota, change your oil religiously. and you are good to go for at least 300,000 miles.
     
  8. Navy1960
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    Navy1960 Senior Member

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    The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. As with cases under other chapters of the Bankruptcy Code, a stay of creditor actions against the chapter 11 debtor automatically goes into effect when the bankruptcy petition is filed. 11 U.S.C. § 362(a). The filing of a petition, however, does not operate as a stay for certain types of actions listed under 11 U.S.C. § 362(b). The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation.

    Under specific circumstances, the secured creditor can obtain an order from the court granting relief from the automatic stay. For example, when the debtor has no equity in the property and the property is not necessary for an effective reorganization, the secured creditor can seek an order of the court lifting the stay to permit the creditor to foreclose on the property, sell it, and apply the proceeds to the debt. 11 U.S.C. § 362(d).

    The Bankruptcy Code permits applications for fees to be made by certain professionals during the case. Thus, a trustee, a debtor's attorney, or any professional person appointed by the court may apply to the court at intervals of 120 days for interim compensation and reimbursement payments. In very large cases with extensive legal work, the court may permit more frequent applications. Although professional fees may be paid if authorized by the court, the debtor cannot make payments to professional creditors on prepetition obligations, i.e., obligations which arose before the filing of the bankruptcy petition. The ordinary expenses of the ongoing business, however, continue to be paid.

    Chapter 11 - Bankruptcy Basics

    As I stated earlier under Chapter 11 these companies may suffer a lot initially, however they will emerge at least in part much better off, rather than continually giving them good money after bad.
     
  9. editec
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    editec Mr. Forgot-it-All

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    I wonder how many years Japan and Korea were allowed to DUMP cars into America before they gained enough market share to kill our auto industry.

    You know, probably about the same number of years that auto workers in Japan and Korean were beaten and murdered and called commies for trying to unionize their auto plants?

    You people really ought to read "The Great Betrayal" by Pat Buchanen.

    It might open SOME of your eyes.

    You're into signing America economic death warrants, and with that your own individual freedoms that some of you think you can going to protect by owning guns.

    America is being turned back into a colony, folks.

    The birth right that we all had, and that ten generations of American worked damned hard to give us, is being pissed away, and few of you seem to understand how it is happening, or why it is happening, or most importantly who is behind it.
     
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    Last edited: Nov 12, 2008
  10. NOBama
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    NOBama Senior Member

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    The only question that remains is: Who's going to bail US - you and me - out after we're done bailing-out all the industries that hurt us to begin with?

    Another thing that concerns me is who's getting the billions, I mean Trilloins of dollars that the Fed feels they need NOT tell us about; what's up with that anyway?
     

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