This has really interested me, I have been watching these 3 company’s ever since fuel went sky high last July. When I went out to Cali last summer I was told that Dodge was reducing their BRAND NEW trucks to 50% below the listing price. Now all 3 want a $25 billion dollar bail out to survive.
GM and Dodge are in the most jeopardy. GM said publicly that it wont be able to get through this year without some help. Dodge currently has about 10 billion in assets (not cash) and is going through about $4-5 billion in cash every month. Add that with the fact that sales are down something like 35%, IMO there will not make it to 2009 without filing for bankruptcy or getting bought out (or merge whatever you call it). Maybe they should stop giving out bonuses! That really pisses me off, the fact that they are asking for a loan from me and you but they are still giving out bonuses…
Back to GM, I first thought that they where in the best shape because they have all those hybrid cars. But last month there sales went down 45% and now I guess they wont even make it though the year. GM and Chrysler are in talks of a merge, it looks like they even might merge by the end of the month?
Now with Ford, it appears that they will make it through the year just fine, infact they have reported that they will make it though the recession just fine. Even hiring more employees for the new 2009 F-series trucks (I want one!). I don’t really believe them just yet, but we should see soon how things turn out for Ford.
Now on to the controversy! Do you agree with the $25 billion dollar bail out that will be coming from you pocket, or to let them fight the struggle on there own? I was actually for the bail out at first, I mean why would the government let even one of the company’s fail? That would mean another 300,000 plus lost jobs. But as I’ve been hearing other peoples options I’m now I am leaning towards not bailing any of them out.
David Lithman recently replied to my Facebook status saying “I’m against all government bailouts. They govenment shouldn’t be putting their hands in and spending our tax dollars to protect corrupt and ill-run businesses. Let them go belly-up, and let the free market fix itself. New businesses will come along in time. Having our government spend billions of dollars to bailout publicly traded companies is a more horrible idea. Bailouts will only delay the inevitable. Let them die now, and rebuild for the future.
A quote from Senator Richard Shelby:
“Companies fail everyday and others take their place. I think this is a road we should not go down. They’re not building the right products,” he said. “They’ve got good workers but I don’t believe they’ve got good management. They don’t innovate. They’re a dinosaur in a sense.”
Also, I’m in favor of them just picked up our of Detroit and relocating to the midwest or south and deunionizing.”.
I actually agree with David on that, except for moving to the midwest/southwest. Why should we loan these company’s our hard earned money when they have built up a failing company? If one or all of these company’s were to fail then I think they should. Now they want help while they are giving out millions of dollars in bonuses.
I want to know what you guys think of this? Let me know in the comments on where you stand on this issue. Also please correct me if you noticed that I have bad info anywhere in my blog post.
EDIT: It looks like President Bush vetoed the bail out. About time he did something good 
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Its a bit like that here in england at the moment the goverment keeps bailing out Banks ect ect but im for that cos if the bank gose bust then ill not get all the money i put in there back.
For some of us that don’t earn money online, it may be very difficult for us to find local jobs if they go bankrupt. Jobs are hard enough to find already.
-Mike
Jon, how about putting up a search box so we can search jonwaraas.com
Yeah, I agree. Enough with the bailouts. How about bailing out the people of this country? How about bailing out the thousands of people who are losing their homes on a monthly basis?
For real, i know multiple people who are now losing their homes because of circumstances beyond their control.
Why does the government always try to push problems forward to the future? How I see it this bailout will only fix Dodge’s, Ford’s, And GM’s problems for this year what about next year and the year after that? Its like when your child keeps on making the mistake of spending there bill money on shoes, cloth, and shit (bonuses!) for themselves but don’t have enough money for paying for their bills. The best thing we could do for that child is to allow them to learn their own mistake instead of enabling them by bailing them out every time.
When will the learn, money won’t solve their problems but money management would!
Just my two cents.
Jon good post, I was thinking some-what.. for, but now really against, I think your right, it’s going to be a disaster to let them crash…. but even if they don’t crash and burn, its a disaster anyways even if they are bailed out for everyone as well.
Yeah I can’t believe how down the auto manufacturers in America are down.
You should look at the domain world. The price are going down2.. just coz of the economics. Automobile price? A lot worse of course
The present economic crisis has damaged a lot of businesses and jobs infrastructure of whole world people this moment are very frustrated and disturbed. Governments of entire world should take effective measure and invest in so that normal level of world economy may possible.
For some of us that don’t earn money online, it may be very difficult for us to find local jobs if they go bankrupt. Jobs are hard enough to find already.
The whole world in under the threat of economical crises.