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Comment - American Auto Makers
Nov 8, 2008 @ 12:38
For those of you following the economic "situation" in the US, you will know that the US automakers (GM, Ford and Chrysler) are now in deep doo doo. So in addition to having to fix the banks and the banking system, Obama now has to prop up all the US automakers! This is 1973 all over again. Where will it end!
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For those of you following the economic "situation" in the US, you will know that the US automakers (GM, Ford and Chrysler) are now in deep doo doo. So in addition to having to fix the banks and the banking system, Obama now has to prop up all the US automakers! This is 1973 all over again. Where will it end!
VerbierNov 8, 2008 @ 12:38
VerbierNov 8, 2008 @ 12:38
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Re: Comment - American Auto Makers
Post 1
Nov 8, 2008 @ 21:30
Well, they'll all go bust. Or maybe all but one of them. Or they'll downsize a lot.
The writing has been on the wall for very long.
Unless, of course, the government bails them out, too.
But the problem (and the difference, compared to the banking-sector) is that the car-manufacturers don't build products that the people want. They buy cars from Europe (BMW, Porsche, Audi, Mercedes, some Volkswagen) or Japan (Toyota) instead.
This is the same as Siemens' mobile phones. They built nice phones (still use my SK65), but the target-population for these phones was too little for what it cost to keep the operation alive (let alone profit). People just bought Nokia. Or Motorola (now, people are buying iPhones and Motorola is in the same situation that Siemens was a couple of years ago....)
See this article (in German): http://www.spiegel.de/wirtschaft/0,1518,589180,00.html
- Chrysler has got just enough money left to operate through Q1+Q2 2009
- Chrysler, GM, Ford will need 25 000 000 000 to simply stay in business
- another 25 000 000 000 is needed just to pay for the health-insurance of the
employees.
The new administration in DC can of course increase the 10 trillion (10 000 000 000 000) deficit some more and bail them out, too - but it won't help if people don't buy the products. I hope they keep that in mind.
It would probably take one or two more years before they could come out with new cars that people might actually want to buy. So, a bailout is just another risky bet.
American car-manufacturers are dinosaurs. They're time has run up.
Maybe all car-manufacturers are dinosaurs - but the German and Japanese ones seem to be a bit prettier and smaller ;-)
It's not 1973 again.
This time, symbolic politics won't help.
The text you are quoting:
Well, they'll all go bust. Or maybe all but one of them. Or they'll downsize a lot.
The writing has been on the wall for very long.
Unless, of course, the government bails them out, too.
But the problem (and the difference, compared to the banking-sector) is that the car-manufacturers don't build products that the people want. They buy cars from Europe (BMW, Porsche, Audi, Mercedes, some Volkswagen) or Japan (Toyota) instead.
This is the same as Siemens' mobile phones. They built nice phones (still use my SK65), but the target-population for these phones was too little for what it cost to keep the operation alive (let alone profit). People just bought Nokia. Or Motorola (now, people are buying iPhones and Motorola is in the same situation that Siemens was a couple of years ago....)
See this article (in German): http://www.spiegel.de/wirtschaft/0,1518,589180,00.html
- Chrysler has got just enough money left to operate through Q1+Q2 2009
- Chrysler, GM, Ford will need 25 000 000 000 to simply stay in business
- another 25 000 000 000 is needed just to pay for the health-insurance of the
employees.
The new administration in DC can of course increase the 10 trillion (10 000 000 000 000) deficit some more and bail them out, too - but it won't help if people don't buy the products. I hope they keep that in mind.
It would probably take one or two more years before they could come out with new cars that people might actually want to buy. So, a bailout is just another risky bet.
American car-manufacturers are dinosaurs. They're time has run up.
Maybe all car-manufacturers are dinosaurs - but the German and Japanese ones seem to be a bit prettier and smaller ;-)
It's not 1973 again.
This time, symbolic politics won't help.
rainer_d, Nov 8, 2008 @ 21:30
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Re: Comment - American Auto Makers
Post 2
Nov 10, 2008 @ 19:02
Here we go:
http://www.spiegel.de/wirtschaft/0,1518,589582,00.html
or, for the overview in English:
http://finance.yahoo.com/q?s=GM
But you don't need to be a Kreskin to predict that....
http://www.spiegel.de/wirtschaft/0,1518,589582,00.html
or, for the overview in English:
http://finance.yahoo.com/q?s=GM
But you don't need to be a Kreskin to predict that....
The text you are quoting:
Here we go:
http://www.spiegel.de/wirtschaft/0,1518,589582,00.html
or, for the overview in English:
http://finance.yahoo.com/q?s=GM
But you don't need to be a Kreskin to predict that....
rainer_d, Nov 10, 2008 @ 19:02
http://www.spiegel.de/wirtschaft/0,1518,589582,00.html
or, for the overview in English:
http://finance.yahoo.com/q?s=GM
But you don't need to be a Kreskin to predict that....
rainer_d, Nov 10, 2008 @ 19:02
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Re: Comment - American Auto Makers
Post 3
Nov 13, 2008 @ 18:22
One more comment on the US automakers.
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