What do you think will happen to the US automakers?

[disneysteve]

DS- if you had a 2002 Camry you like, no reason to worry about 2004, 2006 or 2008 changes because the next Camry you will need is 2012 or 2016, right?

Nope. That's my problem. I've got a 1998 Camry. I will probably be in the market to replace it in about 2-3 years. Since I buy used, that would probably have me looking at the 2008 or 2009 models. That's why I've started paying attention and checking out the current options since those are likely the ones I'll be looking at when the time comes to buy.

[sweeps]

GM suspends payments into 401K plans - Yahoo! News

[kork13]

wow.... that's a pretty severe step that probably alot of people are gonna be extremely upset about.... Anyone know what they previously matched at? How much are these actions expected to free up for GM?

[sweeps]

Chrysler to cut 5,000 salaried workers - Autos - MSNBC.com
Deal talks between Chrysler owner Cerberus, GM reportedly intensify

The cuts are so dramatic that they likely spell the end for Chrysler as in independent company and indicate it is preparing to be sold, said Aaron Bragman, an auto analyst with the consulting company IHS Global Insight.

“Cutting fully one-quarter of your staff is not the way to develop future vehicles,” he said.

[jeffmem]

Well until people stop working for Toyota the big guys in the US are going to suffer more and more. Their labor forces are buying foreign made cars instead of the ones they make. Go figure... In my opinion if they don't get their stuff together they deserve to have finanical shambles. This country really needs to get its ^&*@* together when it comes to these mattters.

[Broken Arrow]

Yikes! GM lost 30% today after an analyst at Barclays valued them at $0! (Ticker only shows 23% loss though.)

[Brenda who]

For companys on the brink of collapse has anyone ventured to figure out the cost for the CEOs to meet yesterday, engaging their private jets? Facing possible bankruptcy who is footing that bill? I think I have a good idea!

[Pitman]

For companys on the brink of collapse has anyone ventured to figure out the cost for the CEOs to meet yesterday, engaging their private jets? Facing possible bankruptcy who is footing that bill? I think I have a good idea!

They had the nerve to fly in private jets for $20K each way and still beg for 20 Billion. Thats like me driving to my Mother's house in Bentley asking her for to pay my rent for 4 months.

[rennigade]

i wouldnt touch a ford or gm car with a 10' pole. i'd say let them rot away to nothing if it wasn't for the thousands of employees who would be out of work.

[disneysteve]

i'd say let them rot away to nothing if it wasn't for the thousands of employees who would be out of work.

Over 2 million employees, actually. That's the problem.

[Broken Arrow]

Eh, I think there are a couple of details that may be worth mulling over. For one thing, it's not a true bailout the same way it has been for the financials, but rather, the Big 3 is asking for a government loan, which they will have to eventually pay back with interest.

Now, my point of contention is, does the Big 3 have what it takes to weather this storm, create a viable product line to sustain their business, and ultimately repay the loans that would be fronted by taxpayer dollars, with interest?

Despite the Volt, I'm not feeling too confident about GM, but... I think Ford has a shot at it. Ford already has the know-how to build affordable, fuel efficient vehicles, and between the three, it also has the biggest pool of reserves to sustain them through this downturn....

Mind you, I am still against the "bailing out" of US automakers, in large part because I still believe in a free market economy, and the role of the government should only be to protect the general stability against potential market collapses, not save every company or industry that ultimately got themselves to this point through short-sightedness and mismanagement.

Perhaps a better way to look at this is not necessarily to lump the Big 3 together as one, but to take each company and examine them individually, case-by-case, and consider whether or not each company is worth the investment in tax dollars to help out. There's no sense in lending money if all we end up doing is just delaying the inevitable because the company still doesn't have a viable business....

In any case, I'm just trying to be as fair and objective as I can because I am still not in support of this particular "bailout"....

[disneysteve]

I have mixed feelings about the private jet thing. I realize the public perception is important, but you do need to look at the reality. Cutting out a $20,000 plane flight is going to do absolutely nothing to stem the billions of dollars these companies are losing. It isn't even big enough to call it a drop in the bucket. They spend that much every few seconds in overall operating costs.

So while I realize it makes them look bad, I think it is a non-issue in the big picture.

[snafu]

disneysteve: when researching auto replacement, I suggest you include Hyundai vehicles. They have hired Honda quality control staff and adopted Honda standards. 2009 is a re-tool if you are buying Nov. 2009, you'll be surprised at their low cost high quality ratio.

I am horrified by the potential loss of manufacturing and what it means long term. So many questions and no answers. Paulsen is in a dither, Bush is only interested in his Iraq war.

Will this replicate the evacuation of texile trade? China has been developing cheap cars. Will they fill the void? Will they open their factories in Michigan and Windsor?

What happends to GM, Ford, Chrysler retirees if these giants fold? Has anyone examined unfunded liabilities? The Big 3s union contracts is a major difference between them and Honda, Nissan, Toyota. Who feels confident buying a car, whose jobs be next on the chopping block? Are banks/financial institutions giving car loans?

[disneysteve]

disneysteve: when researching auto replacement, I suggest you include Hyundai vehicles.

Absolutely. The Sonata is at the top of my list. My mom's got an Elantra (after being a Toyota owner for over 20 years). I've driven a Toyota for over 17 years but may also switch to Hyundai with my next purchase.

[Brenda who]

I am driving a 1999 Hyundai Elantra and it's got 163,000 miles on it now. Running like a top. I'm keeping my eye open for a newer one.