Treasury Says No Aid For Gm, Chrysler

[jrrod2004]

http://money.cnn.com/2008/10/31/news/compa...sion=2008103107:

 

 

Treasury says no aid for GM, Chrysler

 

Merger between two automaking giants appears to be off until after the election, as Treasury says it will not provide the Detroit companies with aid, the Detroit Free Press reported.

 

 

NEW YORK (CNNMoney.com) -- A merger between U.S. automakers General Motors Corp. and Chrysler is likely on hold until after next week's presidential election, as the U.S. Treasury Department said it will not provide the automakers with aid, the Detroit Free Press reported Friday.

 

GM had asked the Bush administration and Congress for a loan of about $10 billion to help keep the struggling company operational. It said that it could possibly use the aid to fund a merger between it and Chrylser, which is owned by Cerberus Capital Management.

 

Many experts have said both companies would need to merge to stop their recent bleeding. GM (GM, Fortune 500) has only about $21 billion in cash and Chrysler has $11 billion, although most of that was borrowed.

 

GM said Wednesday that overall sales were down 11.4% worldwide in the third quarter compared to the same period a year earlier. With auto sales plummeting globally, analysts say the merger would save the companies billions of dollars in redundant expenses.

 

But that would also mean tens of thousands of jobs lost. Analysts have estimated that the total job loss in a GM-Chrysler merger could be as high as 90,000.

 

Furthermore, the Treasury is currently strapped with nearly $3 trillion in Federal bailout and credit liquidity programs aimed at stemming the recent financial crisis gripping the U.S. economy.

 

After news broke that the government would not provide the companies with aid, the Michigan Economic Development Corp. canceled a meeting of local governments to discuss the possible merger, the Associated Press reported.

 

 

 

The Treasury, GM and Chrysler could not immediately be reached for comment. First Published: October 31, 2008: 6:30 AM ET

[MS3DALE]

I think thats the best thing for right now.

[fbachman]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

[Nick The Great]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

 

So true, so true . . .

[jrrod2004]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

 

 

[MS3DALE]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

 

Yep,I think we can all agree on this

[strafingmoose]

I don't know. The merger move looks like they want to get "too big to fail".

 

Too bad, I like GM's trucks, but if they need tax money to build 'em, good riddance.

[C. Charles Hahn]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

 

[MS3DALE]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

 

 

 

 

I do remember those cars however

[MS3DALE]

I like GM's trucks, but if they need tax money to build 'em, good riddance.

 

[Wingnut]

I like GM's trucks, but if they need tax money to build 'em, good riddance.

 

 

 

I agree...If you need my tax money to keep GM afloat...I love my GM trucks, but to hell with that noise.

[strafingmoose]

I like GM's trucks, but if they need tax money to build 'em, good riddance.

 

 

 

If GM gets bailed out, it will be with existing tax money or trough the hidden tax; inflation (creation of credit that's not matched with an increased production of good/services).

 

That's what I meant.

 

In any ways, if GM goes belly up, some other companies will buy GM's good assets. The Vortec and their truck frames are good assets, which eventually will be produced by some other company.

[GMAnimal]

good... last thing we need is the govt in CARS as well. Can you imagine what would come out the other side?

 

 

a car that has a 10% approval rating.

 

Funny. Sad. True.

[VMax2007]

I like GM's trucks, but if they need tax money to build 'em, good riddance.

 

 

 

I agree...If you need my tax money to keep GM afloat...I love my GM trucks, but to hell with that noise.

 

 

If GM goes belly up, it would likely impact your pocketbook more than the taxes from a bailout ever would have.

 

It would be devasting to our already shitty economy.

[MS3DALE]

I like GM's trucks, but if they need tax money to build 'em, good riddance.

 

 

 

If GM gets bailed out, it will be with existing tax money or trough the hidden tax; inflation (creation of credit that's not matched with an increased production of good/services).

 

That's what I meant.

 

In any ways, if GM goes belly up, some other companies will buy GM's good assets. The Vortec and their truck frames are good assets, which eventually will be produced by some other company.

 

 

Oh OK,I understand.

 

Heres my thoughts on it (Not that it means anything) And I'm not trying to start an argument or anything but.....If the goverment can bail out Chrysler like they did in the early '80s,then I think they should help bail out GM now.

I was too young to remember the details of the bailout back then,so I don't know all the details of "how" they bailed them out,or where they got the money from.

I know its a "different time" in our world today,compared to "back then" I just think if they helped them out they should help GM out also.