GM, Chrysler file plans, ask for more money

GM, Chrysler file plans, ask for more money

www.msnbc.msn.com

AUBURN HILLS, Mich. - The U.S. auto industry needs even more help from the government to survive than originally thought.

General Motors on Tuesday said it could need up to $30 billion from the Treasury Department to keep operating. Included in that amount is $13.4 billion the company has already received. Previously, GM had said it could need as much as $18 billion.

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Well, there's a big surprise. /* sarcasm off */ I don't think anyone is surprised that GM is needing more just to stay afloat. The biggest shocker to me comes later in the story.

GM's survival plan also calls for the cutting of a total of 47,000 jobs and the closing of five more U.S. factories. Chrysler said it will cut 3,000 more jobs and stop producing three vehicle models.

So instead of the 10,000 they were going to cut it's now at 47,000. That's a friggin lot of jobs, people with one heck of a ripple effect. So it's looking like bad places to be right now are Michigan, California, Kansas ... ah heck, is there any state in the union that's relatively safe right now from economic woes?

www.msnbc.msn.com
(visit the link for the full news article)

[edit on 17-2-2009 by sos37]

Yeah, not un-usual for big business to want another cookie from that jar now is it?

I think it was a mistake to bail them out in the first place, I mean sure people lose their jobs, but it's all gonna come crashing down at some point anyway.

We should have made these companies file for bankruptcy, restructure their whole business and then give them money to start off.

They could have used the 13 Billion to help the families that would have lost their employment because of this, would have been a much better use of taxpayers money in my opinion.

~Keeper

I love how they throw in the fear tactics. What a load of BS.

"If it was forced to liquidate, Chrysler estimated there would be a loss of 2 million to 3 million jobs, resulting in a $150 billion reduction in federal tax revenue over three years."

money.cnn.com...

I hope the government does not invest more money in these failing companies. They are just prolonging the inevitable.

I better idea to do with the money would be to invest in a new car maker that has innovative ideas and a vision of the future. That is what America needs in a car company not the stale old big three with failing business models.

reply to post by sos37


Everybody and his brother knew this was coming. Just more good money being pissed away, much like the "stimulus" package. Might as well just toss all the money in a bonfire. We'll get the same results.

Let'em go Chap. 11.