The Big Three CEOs were in Washington D.C. on Thursday pleading their cases for a government bailout, but it appears as though two of the three have not completely ruled out a bankruptcy filing. Chrysler and General Motors are reportedly considering accepting a pre-arranged bankruptcy deal in order to secure billions in federal loans.
Citing sources familiar with the situation, Bloomberg is reporting that both Chrysler and GM are considering a bankruptcy deal in a last ditched effort to secure low-interest government loans worth up to $34 billion.
However, even if Chrysler and GM accept a bankruptcy deal to ensure the federal loans, it’s not a guarantee the automakers would survive through 2009 or beyond. Even a pre-arranged bankruptcy is viewed as a death sentence for any of the Big Three, but, with a secured government loan attached, is still a better option than going it alone.
Although Congress still appears fairly split on the matter, Chrysler and GM need a ruling on the matter within days, so stay tuned for a ruling within the next couple of days.
12/04, 5:33 PM
posted by:
Impulsive
Nothing to mull … like Nike says, just do it.
12/04, 6:15 PM
posted by:
DB9
Yes! They’re starting to get it. Now is the time to make a clean break. Like a cathartic release… The damage has already been done; time for a fresh start!
DB9
12/04, 6:22 PM
posted by:
A4
a “fresh start” will result in a COMPLETE drop off in sales.
good luck.
12/04, 6:32 PM
posted by:
DB9
@A4
You mean like what’s happening now?/! If they get the money how many will still be on the fence or won’t take the risk at all considering whats been going on for the last year – especially this Fall? I did, I bought a Pontiac G8 in September (I Knew I was taking a risk but loved the car – not sorry) and a VW CC in October. The CC has already has had one recall – sterring.
DB9
12/04, 6:42 PM
posted by:
DB9
Oh, one more thing, a friend of mine is pissed because of what’s going on. Why, well He just wants his G8 GXP for his collection and is afraid that he won’t get it.
DB9
12/04, 7:33 PM
posted by:
elviososa
this is what i want to see from garbage motor.
12/04, 7:35 PM
posted by:
DrFill
The G8 GXP is a fine specimen
Getting the money won’t solve the problems, but will delay the inevitable
DrFill
12/04, 8:34 PM
posted by:
jdasch1
AIG needs more money right now….so they give it to them with no plan attatched…no public outrage. The car companies employ millions all around the world, and we are asking every question of them??? Let them all fail, or let none of them to fail!! Grow a set of balls and make good decisions!! Politicians are spineless.
12/04, 9:47 PM
posted by:
DB9
@ DrFill
The GT is a blast the GXP, well below is a link for its UK Vauxhall sister the VXR8. The first Domestic I have owned in 15yrs. The best car GM has made along with the Vette and CTS-V then look what happens. Hopefully after the BK they can start over and have learned from their mistakes. While I’m not optimistic, I hope for the best. There is a lot of history with both GM, Ford and Chrysler, to see them in this state… There is a lot of blame to go around for what has brought them to this, Management, UAW and the politicians. Anyway…
http://www.youtube.com/watch?v=MiW8QHq0yUI&feature=related
DB9
12/04, 10:07 PM
posted by:
DB9
^ One more for the road;-)
http://www.youtube.com/watch?v=HC1AUVvAYMY&NR=1
DB9
12/04, 10:14 PM
posted by:
hateful83
I keep hearing that their situation continues to deteriorate because of all the negative press. People are so afraid that they’re going under that they refuse to buy their cars. Well that in conjunction with the fact that few people can afford a new car right now. But still, Detroits situation is worse than others due to this negative press.
12/05, 12:22 AM
posted by:
johnnycanuck
DrFill, I disagree. The population isn’t getting any smaller. Nobody is buying anything right now. Pent up demand doesn’t refer just to teenage urges. The industry in general will prosper in the next 6 months to a year in spite of itself especially if the price of gas remains the economy’s biatch. Give them their loans. 2010 baby, I’d hate to miss it.
12/05, 8:56 AM
posted by:
mulletmaster
@jdasch1
I agree, this is 10 times less money that was allocated to go to companies that the Treasury Secretary will not say “because knowing they received federal funding would de-value the company”. What is GM saying about their sales, see the irony? I personally believe no company should be allowed to take tax dollars and line their coffers due to mismanagement or market conditions.
12/05, 9:59 AM
posted by:
Z06ified
The only benefit of filing a pre-pack is to eliminate the current UAW contracts, and force the UAW to renegotiate better, lower cost contracts. If they’re not going to do that, they shouldn’t bother filing.
12/05, 10:57 AM
posted by:
Veda
jdasch1: You don’t get it. The size of the market, small as it is, will always be the same regardless of how many car brands are out there. If any one of the big three dies, the others will simply take a bigger chunk of the market, thus no job loss. The loss of jobs especially outside US will be attributed to the economic crisis, not the death of an automaker.
12/05, 11:06 AM
posted by:
sxrcamaro
What if they really did go bankrupt? can they truely get rid of the damn unions? Why do we even have unions this day in age anyway? I just hope that it doesn’t mean the end of american auto industry, that would be the shame of all this.
12/05, 12:19 PM
posted by:
yarddog82abn
IT WILL ONLY BE GOOD IF THEY CUT TIES WITH THE UAW, AND WORK THE SAME WAY TOYOTA, AND HONDA WORK THERE PLANTS