The truth about the big 3 automakers bail out
By Arkie69
@Arkie69 (2156)
United States
December 19, 2008 4:01pm CST
You hear all this stuff about millions of workers being laid off if the auto makers fail. This is only partly true. They are trying to include all the jobs that depend on the auto industry and you can't do that. There are more people working in the used car industry than there is in the new car industry and they wouldn't be effected if the new cars stopped being built. Most auto parts stores don't sell many of the new car parts. You must go to a dealer of the new cars to get parts and service. When a car is a couple of years old your local auto parts store will have after market parts for them and you no longer have to pay the high prices at the dealer.
I don't think we are getting the full story on the auto makers bail out. Ford says they don't need the money. I think it's time someone took a close look at what Ford did that the other two didn't. That mistake has got to be corrected or they can't be bailed out. I don't know about other people but some of the things I am hearing just don't stack up right.
3 people like this
3 responses
@michaeldadona (5684)
• Malaysia
19 Dec 08
Thanks for nice insights and sensitivity in the current running financial crisis shrouded Big The in the same having the big impact with the global economy slump as well as the gloomy future market in auto industry. When we talk about business, it includes the term of political business to boosts up their respective Marketing Plan, Marketing Segmentation and Customer Behavior.
FORD don't need the money because they don't want to shoulder the interest bearing from the bailout/loan given by the government(if approved). Secondly FORD has its own marketing strategy, where they take VOLVO car to sell in US as an option model to keep their cashflow running as part of their new offer to to Americans buyer. FORD bought VOLVO Swedish company's stake in 1999. That is why FORD able to drastically change their business plan.
FORD sold their stake Japanese automaker in Japan, MAZDA, relinquish for 20% and gaining money for $280 million leaving their remaining stake for 13%. So now with that remaining 13% of FORD's stake holding in MAZDA; means now MAZDA is regaining the ownership title back to Japanese investors, a total Japanese owner in MAZDA. From that $280 million, FORD regain its cashflow account and enough to runs its business for couple of months ahead and hoping that the continuing business will flow swiftly to get back on the right track of its internal economy scale.
But different case with GM, although GM also sold its stake in SUZUKI company but it was under par far down. That is why American people blame them for their own mistake and wanna let GM down and no more emergency aid for GM. That is why, GM planning to merge with Chrysler LLC., lately.
@michaeldadona (5684)
• Malaysia
20 Dec 08
Be my guest, Arkie69. Its all yours and my real discern since its development on TV, and never fails watching the news. Now Big Three still waiting for the some part of &700 billion to be a part of $25 billion bailout/loan thru Wall Street Emergency Aid announced by George Bush. It is my original writing. Me should thanks you for your sincere request.
1 person likes this
@kristanene (7)
• United States
20 Dec 08
From what I understand, it isn't necessarily that Ford doesn't "need" the bailout as much as any of the others, per se. It seems that what Ford is trying to do is to differentiate themselves from the other companies by saying, "No, we're an American company and we will fend for ourselves. We don't want a handout! We'll figure it out." By doing this, they gain respect that the other two companies will not. People are going to look at the situation and say, "Hey, you know what, Ford didn't take the bailout. They didn't take my tax money to fix their own mistakes. That's really commendable. Forget the others..I'm buying my next vehicle from Ford because they have my respect."
1 person likes this
@urbandekay (18278)
•
19 Dec 08
It is clearly wrong and tyrannical for the US government to give taxpayers money to private firms. An amendment to your constitution calls now upon all patriotic Americans to take up arms against the government and overthrow them. This Americans, is your patriotic duty and all that fail to take this action should not consider themselves good Americans
all the best urban
1 person likes this