gollwoods

Chrysler Models Already on the Chopping Block

think of chrysler as a big tent circus, it has a new ringleader but the clowns are still there. they just need new little fire trucks to trot out before the tent collapses, and the animals escape to other places.
take it from a side show bit player this act won't go on the road for long.

Warning: U.S. Auto Crash Ahead

i think the U S based auto companies are being propped up to help confidence, The sales figures are so low that it is hurting all the car companies and letting G M and Chrysler slowly fade from the market is the best option. Tens of billions are owed to bondholders and a slow default is preferable to a sudden default. I think it is just apperances that matter now. the final outcome is a 95% chance of Chrysler and G M being gone.

Automotive Depression: Government Needs to Let the Weak Fail

sure is easy to cast off workers to save the corporation, I am an autoworker. let me tell you something. The industry is cyclical. workers are laid off and have no job security until they get 10 yrs senority. If then. I was laid off in 1978 and lost all senority and had to start back working temporary summers for 4 years. in 1992 I got in full time now i have 16 years senority. I know I'm about to lose my job and there are thousands al;ong with me. That's it i can not hope to recover my job or find anything close.It's part of the auto industry culture. i can live with that.


On Mar 04 07:35 AM Hedge Fund Invest wrote:

> Philosophically I agree with the thesis in this piece.
> Practically I also agree with the thesis in the piece.
> The problem, I believe, isn't the economics of the US auto manufacturers,
> it is the workers themselves. Since the current administration is
> relatively pro-labor and pro-union (vs. the previous administration),
> I believe propping up the US manufacturers is an attempt to ensure
> that the retirement/pension/hea... benefits continue. US automakers
> paid very lavish wages and provided the best benefits up until recently.
> Many of the obligations to retirees continue to be funded by GM,
> Ford, and Chrysler. If these companies filed for bankruptcy, they
> would be off the hook (i.e. they would settle these liabilities for
> cents on the dollar) for providing these benefits.
>
> These benefits are just like debt. They impair the value of the US
> automakers' equity.
>
> The good times are over. Let them file, and reorganize as nimble
> competitors, making truly great cars. There was once a time...