The chief executives of GM and Chrysler said they could run out of funds without the government's support. GM CEO Rick Wagoner said the package is needed to "save the U.S. economy from a catastrophic collapse."
Bullshit. It's needed to save some face for those CEOs. GM, Chrysler, and Ford aren't disappearing. They're going bankrupt, and will eventually need to file Chapter 11 and RESTRUCTURE. But Chapter 7 isn't really on their radar (yet). These doom-and-gloom scenarios are ridiculous. I still expect a merger somewhere down the line.
That's from this article on the hearings yesterday.
Senate Banking Chairman Mr. Dodd denounced the companies for failing to move more aggressively to reverse their sharp declines in market share. "They're seeking treatment for wounds that, I believe, are largely self-inflicted," Mr. Dodd said, adding the industry has failed to adapt and "we're all paying the price for it."
Chris Dodd stops saying stupid shit? I'm amazed. Of course, he still backs bailout of the big 3.
The companies said they would use the money to pay employees, cover current operating costs and develop new products.
The auto makers and the union sketched their companies' far-reaching impact. They also argued that Chrysler, Ford and GM are on the right track to compete with foreign-based auto makers, but that turmoil in the broader economy foiled their good planning.
GM has put new vehicle development "on the back burner", and Chrysler as just about completely stopped development in order to save costs. So how are they possibly on the right track to compete? Creative advertising campaigns? New paint on the Ram? An extra racing stripe? They are so full of shit.
Of course, if they'd kept up the green vehicle development they'd done so well with under the Clinton administration, they might not be in this fix now. But instead of continuing development on a practical electric car, they repossessed them and trashed them all as soon as Bush repealed the Clinton policies that forced them to do this R&D in the first place. Ah, short-term greed.
Nardelli (Chrysler's CEO) was also the only one of the 3 willing to get paid virtually nothing ($1/year salary) in order to get the bailout money. I'm sure he's already quite rich and has an extensive stock portfolio though, so it's not like he's hurting.
Oh, and the UAW has admitted they might have to make some tough decisions on labour concessions. FUCK YOU. If the UAW wants its members to keep their jobs, they'll take it up the ass and realize they've been abusing their power for years.
Anyway, they're back in the senate, still begging for money and hoping that the government buys their bullshit enough to give them money. My prediction? They'll eventually get it. Maybe not until the Obama administration is in, but they'll get it. Then they'll STILL go bankrupt and have confused looks on their faces... oh, and jobs will still be lost in the US and Canada, but maybe gained in Mexico, Brazil, and Russia. $25B down the drain.
I found it interesting that GM and Chrysler both admitted they won't surivive long without the bailout, but Ford said it could make it through if need be. I thought Ford was in the worst shape. I guess all the belt-tightening over there the past few years, as they've been killed by everyone else, has paid off.