oil & Trouble, Boil & Bubble, GM & Chrysler

[Dave e Victoria]

Figured the other topic could use some new space. All the speculation on who survives in the RV tow vehicle market is just that. Consider the following quoted from the WSJ today.
----"Though GM and Chrysler dismiss the notion, analysts and investors have begun to question whether one of the companies -- locked out of the credit markets and burning cash rapidly -- might have to seek bankruptcy protection. "
-----"GM and Chrysler estimate that a combined entity would need $10 billion in new equity to lay off workers, close plants, integrate the two companies and provide liquidity, according to several people involved in the talks or briefed on them."
-----"GM and Chrysler, through a network of 10,000 dealers, have combined U.S. sales of between $110 billion and $130 billion, a figure that approaches 1% of the U.S. gross domestic product. They employ an estimated 145,000 people in the U.S. at more than 110 assembly, stamping and parts plants. An additional 600,000 retirees depend on the two car makers for health care and pensions"

With all of that, our little niche is unlikely to be much more than an after-thought to the whip-saws on the horizon. As much as we would like to think there is some logical outcome favored by our own brand prejudice, betting on any specifics is nothing more then a crap-shoot. The engineering and marketing guys are no longer in control -- This one belongs to accountants, lawyers and politicos. They can't even spell Cummins, or Duramax, or Navistar.

Sorry to be so cynical, but I went thru the breakup and realignment of several companies. At one point, I even had a "golden parachute."(never deployed). Even without the help of the politicians it was a nightmare.
Dave

[Mrs. CountryGuy]

Gotta say, Dave,

I love your subject line!

I hate the subject, sighhhhh, but that is an attention grabber.

Sorry, off topic, ok, guys, back on track, lets here from ya.

[noneck]

Yes, Dave your all over this topic...working for a big computer company and no chute to deploy I concur with your assessment. This is the point where the bean counters now take command and nothing good comes of it for most of the employee's. Sadly, even most of those bean counters work so hard to keep the company alive and don't see their own termination coming.

[richfaa]

And this today....

WASHINGTON (Reuters) - The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.

The Treasury Department is weighing aid of at least $5 billion, which could include capital injections and government purchases of bad auto loans, according to the source, a financial policy executive who spoke anonymously because the discussions are private"


It is said that if direct help is not forthcoming both companies could be out of cash within a year.....And Dave is correct..this is a struggle for survival and the bean counters will make the decisions.