May
25
Cindy asked:
Nothing will change for the “big three” until they cut costs and consumers begin buying more cars. Auto financing, despite Fed interest rates cuts have gone higher, presumably because of the credit crisis (I don’t believe that). Nobody is buying? The only place that the auto manufactures can have a real impact is to cut labor costs. Job cuts will be made to match production needs. Either way the bailout amounts to Chapter 11 restructuring and downsizing without the legal accountability of actually filing bankruptcy? Bankruptcy would have required a plan to become profitable again and cost cutting measures would need to be spelled out. The House version of the bailout yesterday didn’t require any cost cutting measures? If this thing passes they will all be back again in less than six months looking for more money with no substantive changes to the industry.
Courtney
Nothing will change for the “big three” until they cut costs and consumers begin buying more cars. Auto financing, despite Fed interest rates cuts have gone higher, presumably because of the credit crisis (I don’t believe that). Nobody is buying? The only place that the auto manufactures can have a real impact is to cut labor costs. Job cuts will be made to match production needs. Either way the bailout amounts to Chapter 11 restructuring and downsizing without the legal accountability of actually filing bankruptcy? Bankruptcy would have required a plan to become profitable again and cost cutting measures would need to be spelled out. The House version of the bailout yesterday didn’t require any cost cutting measures? If this thing passes they will all be back again in less than six months looking for more money with no substantive changes to the industry.
Courtney