How to Bail Out General Motors

You friggin' noobs. I work in Detroit for a large parts supplier to all the big 3 as well as Nissan, Cummins, CAT, Detroit Diesel, and many others. We are not unionized and I am (shamefully) a Director where I work. First off, GM can not file for Chapter 11. It's either Chapter 7 or nothing so get that out of your head. Secondly, in either event, my organization can not simply not get paid what is owed. The big 3 and all other OEMs in the industry are at NET 60 terms or greater. GM pays at 45 days, normally. That doesn't even take into account the parts that we have in process at any given moment, raw materials in house and on order, tooling, etc.

A GM (and subsequent Ford and Chrysler filing) would have epic negative effects on the economy. Navistar and Cummins would fail. The supply chain would collapse (over 3,000 suppliers). Over 3 million people would be instantly unemployed. Pension funds would be halted. The enormous inventory of cars at the dealerships would rust away. The tax bases in the cities where the job loses occur would be devastated.

Furthermore, our national security would be jeopardized as the automotive industry is the only one with the capacity to mobilize for war efforts. Guess who built all those tanks, planes, and artillery pieces in the wars? Gee, that would be the automotive industry.

More to the point, all that would be left in the US would be foreign assembly plants and their models. That means every car you buy from now on would directly transfer sovereign wealth to Japan/Korea/China/Germany....everywhere but here. You think it's bad pay the Saudis for oil? Try us giving every friggin' buck ever spent on cars to other countries. It would transfer more wealth than even oil.

Also, what, exactly do you think your going to do with 3 million - 5 million MORE unemployed workers? You have to pay them unemployment, welfare, health care and everything that goes with it.

I understand that most of you are ticked off at Detroit. By the way, I am also. I think the UAW as well as the executive staff of the companies have done some seriously boneheaded things (reference Wall Street and the banking sector before tee'ing off it being an automotive only problem).

But, jesus, get real. Letting them 'die' is the most ignornant idea that could be thought up.

I would suspect that nobody posting here either works in the industry nor understands the complexities of it.

Please, if you have a question, ask me. I'll give you the facts. I will not try to change your mind either. Some out there are just so hell-bent to 'get over' on the company that sold them a car with a bad water pump that they are hopeless. But, I'll answer the questions professionally and with respect.

Clearly, help for the U.S. auto industry is urgently needed, and just as clearly must be tailored to strict demands for change. Most important is the need for leadership in designing highly fuel efficient cars, so that we are no longer playing "catch up" with foreign manufacturers. In the immediate future, these should emphasize models such as "plug in hybrids" that can run for 100 miles on battery power without using gasoline, and ultimately, all electric vehicles. The fuel efficiency will not only benefit consumers, and not only benefit national security by relieving our dependence on foreign oil, but will also be a major step toward reducing CO2 emissions contributing to potentially catastrophic global warming. Electricity generated at the power plant is a lesser source of CO2 than the internal combustion engine, even when produced from fossil fuels itself, but as renewable energy substitutes more and more for coal and gas in electricity generation, the reduction in carbon emissions will be even more significant. This is a true long term investment that will pay future dividends, both literally and metaophorically.

Fred Moolten

yeah, well some people don't need a tax credit... Make some guide lines for distribution and let local dealers work it out. Maybe it would create repeat business and service dollars for them too... We need to get a little more creative in the dollar dollout business!

I'm not sating they don't have quality products. The government needs to invest dollars into the lower segment of the economy. Producing cars is what they should be doing. That creates jobs and that creates dollars from the bottom up. Maybe more American cars are the road is just what we need people here to see?

I would be inclined to bail out GM if they had not just opened a Russian plant and expanded their chinese facility with the intent to produce cheaper vehicles using forign labor. This entire situation reeks of an inside attempt to continue moving US production to other countries. I vote for 0 bailout. No more tax payer money to any bank/company/or municipality. We all need to stop spending money we do not have. It's a simple rule long forgotten by what was once the greatest country on the planet.

Why don't they try the trickle up effect....Give out 25 million small 'hybrid' cars, about 1.3 million cars by my math. It will create jobs, it will create service, it will create energy...it will actually stimluate something other than just paying off existing debt, the execs getting bonuses and the unions getting benefits

Don't waste another penny on the top-3!!! As others said, might force a bit of reality on the whole country...world!!! Now we can start building cars that last and even gat over 50 MPG at a much lower cost...the technology has been here for years, but the top-3 have bought all of the patents along with the big oil companies. We have qualified young engineers ready to work for less and produce more!!!

This is no BS, but you have to give the new administration a chance. I am not a Democrat and didn't even vote for Mr Obama. I've been in the military for 24-years working for a lot less giving a lot more than your UAW's. Let's move forward, I'm willing to.

USAF/member

lets let then fail go bankrupt, then the taxpayers can pay the 2.5 million people that will lose their jobs the unemployment checks they will get. Either way we pay....why not help GM out , kept them working so they can put money back into our economy

Perhaps the first step could be to bring the retirees into the national health plan that Obama has discussed. Removing this cost from GM and putting it onto the Congressional plan will be cheaper than the bailout and will go a long way toward proving the plan's mettle. Also, since it is a government decision, not a management one, labor would be forced to strike against a popular president that it sought to elect - something that may act as a bit of a brake on labor activism.

Once this is done, it may be easier to move a broad swath of pensioners into this plan, lifting a good bit of drag from a lot of companies without over regulating them. The plan can then be rolled out to individuals and will have momentum to really gain acceptance.

And what is the cost of all the executives? We talk about the high cost of employees. At $71 an hour, sound like they are making a decent wage not a killing. I agree that some of the benefit packages have been a little exhorbinent but that is nothing compared to the money that the executives make. And is it based on performance? I highly doubt it based on the current situation.