Obama’s Brilliant Plan For General Motors: File Bankruptcy

• March 31, 2009

So we needed billions of dollars in bailouts, and massive expansions of government authority, so that the Obama administration could file for bankruptcy on behalf of General Motors.

WASHINGTON — The Obama’s administration’s leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.
The move would in essence split both companies into their “good” and “bad” components. The government would like to see the “good” GM to be a standalone company, according to an administration official. The “good” Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said.
GM and Chrysler have had bankruptcy attorneys devising plans for such a move in recent months.

So why couldn’t GM and Chrysler have just done this on their own and saved the taxpayers a whole lot of money?
Probably because it was far too convenient for the Democrats and Obama to use the economic crisis as an excuse to expand their powers.

Tags: Asshats, Domestic Issues, Politics

http://Array Hannitized

And what do you have to say about the Mini Bat? It sort of puts reality to your false claim that nobody wants to buy small cars, does it not?
Hannitized

The Toyota Tacoma is a great looking truck!!! They hold their value, they are reliable.

Give them some credit.

Thats a great looking dog as well. And yes, that is a support our troops sticker on my Truck.
http://sillytroll.com/ Dino2

Yo, idiots! The auto bailouts were given before Obama took office.

But isn’t this what you wanted? To see an end to the bailouts and let the unprofitable companies fail and die?

Cranky fucking conservatives. If it wasn’t for your shit leaders over the past decade the country wouldn’t be falling apart.
http://SayAnythingBlog.com The_Whistler_ofnd

Wow, that Obama sure is a genius.
http://ndgoon.blogspot.com/ goon

Look, nobody has the balls to call Rob out on his shit. Instead, they focus all their fury on Dino.

That is because DINO 1 and 2 has no credibility and Rob does.
Buzz

Probably because it was far too convenient for the Democrats and Obama to use the economic crisis as an excuse to expand their powers.

Well, yea. Never let a catastrophe go to waist. Soon the stars will be in alignment.
sayanything-5371

What we have here is the start of a US Industrial Policy in which government bureaucrats use the slowing economy as an excuse to dictate to private industry what sort of products will be manufactured and sold.

The USA will become like Russia, where factories made train loads of bras the didn’t fit and no one bought, day after day for years. The government will force products to be made that no one wants.
Bat One

Obama’s threats about bankruptcy are no more believable than any of his other threats… or promises.

In bankruptcy, a federal judge would decide what is to be done and how. Obama and the Democrats aren’t about to let a judge bust the UAW. They might let Chrysler go under, but not GM.
Hannitized

Where’s Rob’s shit?

Whistler accidentally called Rob out on his shit:

GWB deserves heaps of criticism for his part in this. However I don’t remember the Democrats in Congress opposing it so they are also to blame.

This is not what the headline says. The bailouts for GM were given under Bush.
Bill

And while you’re at it, purge the union contract. Have to start with a clean slate.
Bat One

Not true! DocDave drove a Pinto and Ford Taurus.

While the Pinto might be considered a “small” car, the Taurus certainly isn’t. And while the Taurus, a mid-size family car, was considered a sales success, the Pinto certainly wasn’t. And neither car is considered “green” in any case.

Of course, both are Ford products, not GM, so as an example they are all but irrelevant.
Mickey

Obama should fire the union workers first. There are plenty of qualified non union minority workers who can do the job for less and still make a good living.
Hannitized

Toyota Tacoma’s made in Fremont Ca, NUUMI Automotive, unionized plant:

Further, it is one of the top producing plants in North America, GM tried to learn from them how to make inexpensive automobiles….but failed evidently.

New United Motor Manufacturing, Inc. is an automobile manufacturing plant in Fremont, California. The factory was a General Motors plant opened in 1962 and now represents a joint venture between GM and Toyota. When it reopened for production in 1984, it was the first automotive joint venture plant in the United States. GM saw this joint venture as an opportunity to learn about the ideas of lean manufacturing from the Japanese company, while Toyota gained its first manufacturing base in North America and a chance to implement its production system in an American labor environment. Many business textbooks mention NUMMI when they discuss joint ventures.

NUMMI is now an award-winning facility which ranks with other Toyota plants among the most productive manufacturing operations in North America. GM places around 12 managers each year at the plant to learn lean techniques and has improved quality enough across the rest of its operations for it to show through on J.D. Power quality rankings. While the plant has been successful in adopting Lean, other GM plants have seen benefits. GM’s Oshawa, Ontario plant received the 2006 JD Power Gold Plant Quality Award, the third time in the last five years.

Above from WIKI…
Hannitized

The only way that smaller, green cars will sell is if the price of gas is pushed up to around $5 per gallon. Which will be accomplished by further reductions in supply and further increases in taxes.

NOT true!!

MINI USA Sales up 56% for October

Press Release: MINI USA reported October sales of 5,272 automobiles, up 56.4 percent from the 3,370 cars sold in October 2007. Year-to-date, the division reported sales of 45,966 automobiles, an increase of 30.2 percent, compared to the 35,306 cars reported in the first ten months of 2007.

Obama is exactly right, again.

GM must learn how to sell small cars people want to buy, and make money doing it.
Hannitized

In bankruptcy, a federal judge would decide what is to be done and how. Obama and the Democrats aren’t about to let a judge bust the UAW.

So, government can decide what must be done during Chapter 11…..just not Obama?

That argument obviously lacks sophistication, but it makes up for that fact with over reaching partisan hatred that prevents any intelligent criticism.
docdave

use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs,

Oh that will really encourage investment. /sarc
Hannitized

More Faux outrage from Bat.

The only way that smaller, green cars will sell is if the price of gas is pushed up to around $5 per gallon. Which will be accomplished by further reductions in supply and further increases in taxes.

Not true! DocDave drove a Pinto and Ford Taurus.

Read the post again.

GM was also told in no uncertain terms that it must learn to make money on smaller cars–not just trucks and sport-utility vehicles…

They always made smaller cars, and cars other than sport utility vehicles and trucks.

What are you talking about? Obama said you need to be profitable by making better cars…..that people actually want to buy. So what?
docdave

Then at least they’d have some revenue.

Revenue without profit is what bankrupts a company. Only the government can continue to operate without a profit.
Hannitized

GWB deserves heaps of criticism for his part in this. However I don’t remember the Democrats in Congress opposing it so they are also to blame.

That is not what the headline of this post says. Thanks for the truth there Whistler, but you might have a talk with Rob on that one.
http://jabailo.wordpress.com/ John Bailo

GM has done everything it could…except lower the price of its cars.

They should cut the price of every unsold car in half, and get rid of all dealer markup.

Then at least they’d have some revenue.

Instead, they are playing a waiting game rather than doing business.
Bat One

Toyota (and Honda, Nissan, and Hyundai/Kia) are non-union, located in “right to work” states. So while their wage structure is only modestly lower (and not at all if you adjust for local cost of living variances), none of those companies, or Mercedes or BMW are saddled with the huge unfunded retiree costs (pensions and healthcare) that burden the US Big Three.

GM’s newest Malibu is actually every bit the equal of Toyota’s Camry or Honda’s Accord, and is selling very well. But GM’s personnel and fixed costs are such that the foreign manufacturers enjoy a per unit cost advantage of over $1500. So if the Malibu is market priced to compete with the Toyota and the Honda, the company is still losing money with each car sold.

Those “legacy costs” are the equivalent of the banks’ “toxic assets.
Hannitized

Maybe it’s the Corolla….but that is what I remembered from somewhere.

Regardless, Toyota is the brand of the top selling car in the world.
http://insanereindeer.blogspot.com/ Kenny

Look, nobody has the balls to call Rob out on his shit. Instead, they focus all their fury on Dino.

Where’s Rob’s “shit”?

http://usnews.rankingsandreviews.com/cars-trucks/Auto-Bailout/

Obama is STILL funding the auto companies. He’s threatening bankruptcy if he doesn’t get his way…but the money is still flowing. Regardless of Bush’s stupidity, Obama has been sending out money since the day he got in office. Which makes everything Rob said correct. He wasted a lot of our money, just to turn around and tell them they need to file bankruptcy.

Dino lies and gets called on it. And you whine that everyone’s unfair, cause they’re not calling Rob a liar too. But Rob hasn’t lied. Hmmmm.
http://sayanythingblog.com/entry/america_is_back/#c397018 Dino2

Oh look! The arsonists (conservatives) are making fun of the fire chief (Obama) trying to put out the fire they set!

Walking turds. That’s the conservatives.
Hannitized

If you honestly think that the per unit cost differential in an “unfair attack” on unions, then I guess you’ll have to find another explanation for the differential.

I just laid it out for you up top. Have a look.

Calling my integrity into question over an interpretation is beneath you.

If you can’t explain what RINO means and what the word Republican represents in it, then I guess we are at an impasse.

You always tend to go this direction when I am adequately disassembling an argument.

Why can’t you just admit that Toyota had a more competitive approach to making automobiles as a part of the reason why they are more successful?
Hannitized

My father has always told me to buy only American cars, made in union shops…..for years I have been a Ford customer.

Ford also does incredibly well by making cheap, smaller cars and affordable trucks. In 2006 they tried to screw a long standing customer on my finance rate.

I bought my first Toyota that year, from a unionized factory that my friends happen to work at in Fremont California.

I love the size and look of my new Tocoma, but miss my old Ford F-150, for some strange reason.
http://sillytroll.com/ Dino2

Yes, and if they had voted against it you would be blaming them for the disastrous results.

If the republicans hadn’t destroyed the financial sector and credit markets when they ran the country unilaterally during the bubble buildup, we wouldn’t be in this mess.

Never forget that.
Bat One

From the WSJ article,

GM was also told in no uncertain terms that it must learn to make money on smaller cars–not just trucks and sport-utility vehicles…

What we have here is the start of a US Industrial Policy in which government bureaucrats use the slowing economy as an excuse to dictate to private industry what sort of products will be manufactured and sold. Nobody voted for this last November.

The only way that smaller, green cars will sell is if the price of gas is pushed up to around $5 per gallon. Which will be accomplished by further reductions in supply and further increases in taxes.

If you want to buy a Corvette, especially the new ZR-1, or a hot, new Camaro, get your orders in now! Neither is likely to be available two years from now. Obama and the central planners will see to it.
http://ndgoon.blogspot.com/ goon

Obama should fire the union workers first. There are plenty of qualified non union minority workers who can do the job for less and still make a good living.

The bailout for the auto companies is about BARRY O protecting his union buddies.
http://SayAnythingBlog.com The_Whistler_ofnd

Bailo must work for Obama. Figures they’ll make up selling at a loss with more volume.
http://SayAnythingBlog.com The_Whistler_ofnd

Yes Dinostem. GWB deserves heaps of criticism for his part in this. However I don’t remember the Democrats in Congress opposing it so they are also to blame.
Hannitized

I can admit that it is a possibility if you can admit it is a small one.

What is Toyota’s top selling vehicle? The Toyota Tacoma.

How many Tacomas are assembled in Japan? None of them.

In it’s class, what is the top selling vehicle? The Toyota Tacoma.

http://pressroom.toyota.com/pr/tms/toyota/TYT2007100235274.aspx

Isn’t it more likely that your facts are wrong?

The plant has focused on lower-cost, fuel-efficient cars and has been recognized for its quality and productivity. It has long been considered a historic joint venture — the first of its kind on U.S. soil that afforded Japanese and American carmakers the chance to work together and share carbuilding philosophies.

The plant’s “lean manufacturing” techniques are referred to as the “Toyota Production System.” It is steeped in Japanese business lore and terms that stress and lay out a road map for quality, efficiency and production advances.

Toyota also has plants in Baja California, Mexico; Indiana; Kentucky; Texas; and Canada, to name a few in North America.
http://SayAnythingBlog.com The_Whistler_ofnd

This is not what the headline says.

Right the headline says that Obama finally is facing reality that GM needs to declare bankruptcy to shed itself of it’s unsupportable costs.

Obama’s way late, BUT he’s finally come to the right plan.

But he probably won’t follow through because the problems at GM are problems that Obama wants to duplicate in the rest of the economy. (ie Union control).
robert108

I can admit that it is a possibility if you can admit it is a small one.

Basic dishonesty; if something is true, it’s true, and if it’s false, it’s false. It’s not about “making a deal”, is it?
If you don’t admit the truth, you are dishonest.
Hannitized

ROBERT, DONT SHIT ALL OVER THIS THREAD…TROLL. There is an actual debate occurring.
Bat One

Whether or not Toyota has a unionized plant is hardly relevant to the per unit cost differential between GM and the so-called “imports.” GM is still saddled with the legacy cost of its union retirees’ pensions and healthcare.

GM should have gone into bankruptcy in January.

If you honestly think that the per unit cost differential in an “unfair attack” on unions, then I guess you’ll have to find another explanation for the differential. But then, I used that word “honestly” didn’t I? And I have already proven that you are a liar (You remember Victor Davis Hansen, don’t you?), so there’s not much point in pursuing that either.
Zakk

Isn’t it possible that the reason Toyota is able to have a union shop in CA and still make money is because they have a bunch of other plants that are not unionized?

They can take the financial hit from the unions because they are able to make enough with the other non-union factories to not go broke.

http://www.autoblog.com/2007/01/31/toyota-workers-in-us-made-more-than-uaw-members-for-first-time-l/
Bat One

What is Toyota’s top selling vehicle? The Toyota Tacoma.

I don’t think so…
http://sillytroll.com/ Dino2

Yo! Stupid fucking conservatives! The auto bailout money was authorized by BUSH from the TARP money he went on TV to beg for.

Is it any wonder I relish the idea of you people and your kids suffering mightily?

And they will. Trust me.
jimmypop

Yo, idiots! The auto bailouts were given before Obama took office.

what was barrys job before he was president and how did he vote on all this crap? hint; it wasnt ‘present’. you liberals have been running the show for two years and most of the last 50. why do you keep running from that?

But isn’t this what you wanted? To see an end to the bailouts and let the unprofitable companies fail and die?

yes, but it should have done this before we gave the unions and leaders piles of cash.
Hannitized

Look, nobody has the balls to call Rob out on his shit. Instead, they focus all their fury on Dino.
Prairie

Idiot Obama – Wagoner was just given 20mil for his golden parachute. Government Motors indeed.
sayanything-5371

In the end most of these banks and corporations we spent billions to bail out will all file for bankruptcy. We spent a lot of money and wasted a lot of time for nothing. Nothing is to big to fail. Look at Obama.
http://www.rabidamerican.net/ Rabid American

Kaptain-Freakin-Obvious!!!

Ya think, Barry? Ya think that might have thought of this earlier and saved us HUNDREDS OF BILLIONS OF HARD EARNED $$$ ??????

We know GW authorized it, but BO hasn’t shied away from reneging on other agreements….. when it didn’t involve his co-conspirators, that is………

What a stupid, stupid, petty, usurping, wanna-be, thug!

What a puke the Libs have hefted upon our shoulders, not excluding the MSM!
Hannitized

That is because Dino 1 and 2 are blithering idiots.

Meanwhile, I disassemble the arguments against Obama, and the unfair attacks on Union auto-manufacturing plants.
http://ndgoon.blogspot.com/ goon

Look, nobody has the balls to call Rob out on his shit. Instead, they focus all their fury on Dino.

That is because Dino 1 and 2 are blithering idiots.
Hannitized

Thank you again Whistler!

Obama’s way late, BUT he’s finally come to the right plan.

The headline doesn’t say that either!! You should have a conversation with Rob.
robert108

Yo, idiots! The auto bailouts were given before Obama took office.

By the Pelosi/Reid/Obama Congress, which has presided over our financial troubles. It’s all yours, lefties! You were squealing about the “thumping” you administered in the ’06 elections, and now see what you have done. We were in a record prosperity cycle until you greedheads took over. You own this one, dinostem.
Zakk

If they can, why can’t GM?

Toyota doesn’t have unions to deal with. It’s amazing how much money they can save without dealing with unions.
Bat One

The Mini is a fine car, and now that BMW is producing it, a reliable one as well. And being a BMW owner and a big fan of the German marque, I’m certainly glad to see that sales are up.

But even if GM could build a car equivalent to the Mini, sales figures of less than 55,000 units per year (the Mini) isn’t gonna have much of an impact on a company like GM, which lost money on sales of nearly 130,000 units just in the month of February.
Hannitized

You are ignoring the point Bat.

First, Obama merely said what needed to be done, that GM must learn how to make cars that are profitable and small, because their smaller cars have not been profitable.

Where did hi mention green cars? I don’t doubt that he might not believe that, but where did he say it? Can you link me?

Second, why is it bad for GM to make smaller, profitable cars? They are needed for people who can not afford the expensive SUVs or gas guzzlers. Trucks and SUVs will not stop being manufactured.
Hannitized

Ah, good point.

Toyota provides a fine example of a manufactuere that cand produce both large turcks, mid-sized trucks, SUVs and small cars and do just fine.

If they can, why can’t GM?
Hannitized

Toyota doesn’t have unions to deal with. It’s amazing how much money they can save without dealing with unions.

My Toyota Tocoma was made in the NUMMI plant in Fremont California. NUMMI is a unionized auto manufacturing plant.
jimmypop

Yes, and if they had voted against it you would be blaming them for the disastrous results.

which would be…….. a crashing stock market and GM going bankrupt, right? wait….

i would be blaming the repubs for letting the liberals doing the heavy lifting. liberalism fails everywhere its tried.

If the republicans hadn’t destroyed the financial sector and credit markets when they ran the country unilaterally during the bubble buildup, we wouldn’t be in this mess.

Never forget that.

your party ran this country for the last 50 years. youve had total control for the last two. you guys wanted to give money to poor people. and barry voted for everything that crushed us in the last two years. additionally, bawny fwank told us everything was great less than a year ago. never forget that.
http://sayanythingblog.com robport

If they were plumbers, a broken pipe in your bathroom would be fixed by a bypass that went through your living room, bedroom, and front porch and cost 5271 times more than just fixing the one broken segment.

And the contract to do the repair would include a clause giving the government regulatory authority over the color of your couch and the contents of your fridge.
http://suitepotato.blogspot.com/ sayanything-4808

Rob:

Probably because it was far too convenient for the Democrats and Obama to use the economic crisis as an excuse to expand their powers.

If they were plumbers, a broken pipe in your bathroom would be fixed by a bypass that went through your living room, bedroom, and front porch and cost 5271 times more than just fixing the one broken segment.
http://suitepotato.blogspot.com/ sayanything-4808

Dino:

Is it any wonder I relish the idea of you people and your kids suffering mightily?

No, you’re a hate filled little man with no soul, so not surprising at all.

You’re also a coward.

Dino:

And they will.

I may speak for just myself but I know I’d gladly eviscerate you live on television with a million witnesses and go to prison with the biggest smile anyone has ever had before allowing you the slightest pleasure over any harm befalling my family.

Since I am the head of that family it will never happen so your worthless skin remains safe. Buck up there Dino. My family’s prosperity means you get to live.

Dino:

Trust me.

I’ve heard that more convincingly from used car salesmen.

Dino:

If the republicans hadn’t destroyed the financial sector and credit markets when they ran the country unilaterally during the bubble buildup, we wouldn’t be in this mess.

I thought the Republicans had made the financial sector and credit markets insanely wealthy with money stolen from the people. No? Which lie are you backing now? That one or the idea that the country has spent the last eight years under gray unbroken cloudy skies living in a conservative police state? Can you come up with one consistent delusion or are you fracturing, because you’re not nearly as entertaining as United States of Tara.

Buzz:

Well, yea. Never let a catastrophe go to waist. Soon the stars will be in alignment.

Since I bike fifteen miles or so a day and jog two more, I don’t think any catastrophes are headed for my waist but I’m not sure what that has to do with astronomy or astrology.

Hannah:

Look, nobody has the balls to call Rob out on his shit. Instead, they focus all their fury on Dino.

Agreeing with someone who is right is not cowardice nor taking on someone who is full of shit wrongful. If you like, I can focus some fury on you, but I’ll wait while you go get your Geritol and some Red Bull to power back up after that inane fantasy about Ms. Harmon.

Remember the Aspercreme too. Don’t want to hurt yourself standing up straight to face furious text on a monitor.
http://sayanythingblog.com/readers/author/sparkiearbuckle sayanything-81

Fuck GM, they have made shit since 1980.

Fuck Obama too, and all your pols.

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