GM Declares Itself Essential to World As We Know It

Scott Reeves  Nov 17, 2008 2:40 pm

GM Declares Itself Essential to World As We Know It
 
New ad campaign threatens US collapse would follow GM collapse.
 

 
The video is part of an effort to define the terms of the debate in either the lame-duck Congress or in the more heavily Democratic body that takes office in January.

The video is heavy-handed propaganda and cornball to the max, but here’s betting GM will get something from the government - probably a lot.

Ron Gettelfinger, head of the United Auto Workers, told the New York Times that “we are in a crisis that could have a major negative impact on this country.”

But opponents of the bailout say a Chapter 11 bankruptcy filing would allow GM to reorganize and become more competitive with major rivals Toyota (TM) and Honda (HMC). Should the government have bailed out Enron without demanding, you know, a few changes in the way it does business? (Yes, yes, Enron was close to a criminal enterprise and GM may be just poorly run.)

GM counters that a bankruptcy filing could cripple the nation’s industrial base, because few would buy a car from the automaker with the warranty in doubt. Reduced sales would hammer suppliers, dealers and sharply reduce advertising - a wave of unintended consequences that could damage other sectors of the economy and throw thousands out of work.

GM says it needs breathing room as it develops hybrids to compete with Toyota's successful gas-electric Prius. GM is also developing lithium ion batteries that could power a new generation of electric cars and again make it competitive in the global market.

The details of the proposed bailout have yet to be defined. Can Congress oversee a plan that, for example, rolls GM’s bonds into equity and renegotiates its labor contracts? To answer a question with a question: Do Amtrak and the United States Postal Service give you any confidence that it can?
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Comments (21) See All Comments »
11-18-2008, 2:27 pm
people will live without the uaw.....many people in line to assemble and sweep floors for less money...who needs to pay there pension and healthcare with bailouts from the people.....i work for mine...crybaby uaw
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11-18-2008, 9:08 pm
>Japanese auto industry after WW2. They're as close to being
>American as any other American company who offshores everything
> -which is every American company. I don't see the issue.

Amen! I see that F
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03-13-2009, 4:30 pm
Amazing the way some people think, instead of requiring the Japanese auto companies to pay their workers a fair wage you want to lower yourself to their thinking by wanting to lower the fair wage being administered to American workers at American aut
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03-13-2009, 4:39 pm
This shows how little you know about pensions. I, a UAW worker have paid into MY pension for 32 years. This isn't a company give away. I have done the exact same thing you claim you have done so in calling me a cry baby you are also calling you
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03-13-2009, 8:55 pm

"requiring the Japanese auto companies to pay their workers a fair wage"

What a great idea.

Why don't we require this same thing of the Mexican government, the Chinese government, the Arab governmen
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