Quote:
Originally Posted by Mr. Sandman
I think the reasons for the collapse of the auto industry is being morphed into something that it really isn't. Yeah they ain't selling cars but it is not because people don't like the cars they are producing as congress is saying, it is paying for them that is the problem. .
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Kind of what I was saying(consumer demand is down), but to remain competitive they need to make drastic changes and I'm not sure they have enough time to do this prior to the cash being burned off. Hell, my last six vehicles have been fords and I'm not complaining about the quality.
These companies, though, have been sliding downward for over a decade and now suddenly there's a crisis when there's free money to be had.
I'd have less of a problem if the gov't got collateral as opposed to "we'll pay you pack when things improve."
AIG still has a vibrant insurance business too don't forget. Gov't at least has an ownership stake in a viable entity that will presumably increase in value when things straighten out. Not sure about GM.