Treatment of Bush has been a disgrace

[AGDee]

Perhaps my perception is altered because of my location, but people are starting to really panic about the economy around here. Yes, it was bad before, yes, our retirement funds were starting to tank, but every single day the news gets worse and worse. The possibility of GM going under is terrifying to us. I heard a stat today that if GM goes under, that will mean 2.5 million jobs will be lost around the country (and not just in the auto-industry). The statistic commonly tossed around in Michigan is that for every GM job lost in Michigan, 10 other people lose their jobs as a trickle down (restaurant workers, retail, etc). So yeah, the last week has been pretty horrific for a lot of us.

[UGAalum94]

Originally Posted by AGDee

Perhaps my perception is altered because of my location, but people are starting to really panic about the economy around here. Yes, it was bad before, yes, our retirement funds were starting to tank, but every single day the news gets worse and worse. The possibility of GM going under is terrifying to us. I heard a stat today that if GM goes under, that will mean 2.5 million jobs will be lost around the country (and not just in the auto-industry). The statistic commonly tossed around in Michigan is that for every GM job lost in Michigan, 10 other people lose their jobs as a trickle down (restaurant workers, retail, etc). So yeah, the last week has been pretty horrific for a lot of us.

What do you think it would take to keep GM in business long term?

It's just really hard for me to imagine GM hanging in there, delivering pay and benefits at the level unions require and staying profitable. But I completely admit, I've not studied the issue at all.

[AGDee]

Currently, people wanting to buy cars are having a very difficult time doing so because of the credit market crisis, so that's a big part of the problem. They obviously need to re-tool. The sudden shifts in gas prices wreak havoc on them. People were buying gas hog SUVs like crazy and then BAM, gas prices skyrocket and people stop buying those and want smaller cars. It takes a long time to re-tool to make different vehicles at the plants where they've been making the gas guzzling trucks and SUVs. They have a lot of technology in development for alternative fuel sources. There was a $25 billion package for the auto companies to start re-tooling their factories for alternative fuel/better gas mileage cars but the money has yet to get to them. The unions are going to have make some concessions, I agree and that may not happen unless GM files chapter 11. Ford managed to sell off a lot of extra property that they had to help ease their cash flow issues but GM hasn't done that yet. The Ford plants around here all suddenly are surrounded by stores because Ford had a lot of a acreage around their plants. They've ridden it out during past recessions and made it and I think they can do it again. I read an article about how Cerberus (the company that now owns Chrysler) bought a controlling share of GMAC (the main loan/financing company for GM) and then made it very difficult to get GMAC loans. I think with a temporary loan for cash flow, they can stay alive, but rumors here are that they will be out of cash by the end of December.