Friday, December 5, 2008

How much will that auto industry bailout cost?

What's a few billion dollars among friends? How about $25 billion ... err ... $34 billion ... umm ... I mean ... $125 billion?

What? $125 billion?

Yep. That's what at least one financial expert says may be required to save the Big Three automakers and the United Auto Workers from their successful effort to turn themselves into exhibits in a museum of industrial obsolescence.

From the Chicago Tribune:
Bolstering the notion that the aid request was only the beginning, Mark Zandi, chief economist at Moody's, predicted the companies would need $75 billion to $125 billion in government loans to avoid bankruptcy over the next two years.
My Nissan truck drives just fine, by the way. I may buy another, although it's going strong after ten years. Admittedly, Nissan is suffering in these tough times, too. The company's net profits slipped to $1.3 billion for the last six months.

I wonder if Nissan would be willing to buy up any of the pieces of the Big Three. After they go through bankruptcy, of course.



Blogger John Holton said...

I have a 17 year old Honda Accord that drives great, and a 2002 Odyssey van that runs beautifully. I've been saying all along that the Japanese automakers should buy the Big 3, because they apparently know how to run a car company and we don't.

December 5, 2008 11:04 AM  
Anonymous M.S said...

You know... I'm almost to the point where I just want the whole @#$% economy to crash. All of these bailouts and all of these "The Government has a responsibility to come save us!!!!" attitudes are really starting to irritate me. Maybe I'll go for a walk.

M.S, Phoenix

December 5, 2008 11:08 AM  
Anonymous Zeta said...

No, John Holton your wrong. Japanese corporations run in a very different fashion than to what the Big 3 are doing. Japan isn't a melting pot like the US is with it's different cultures. Japanese tend to work in their uchi group, stay on the job until the boss of the company leaves (it's considered rude to leave to go home before the boss of the company does.), and work so hard for the good of the team, that you die, literally.

December 5, 2008 11:16 PM  
Blogger Fred said...

The Japanese may run their businesses differently, but the design cars people want to drive. That's where they get ahead.

American auto makers don't seem to have a clue, especially Chrysler (Don't they still make Dodge trucks?).

Anybody see that ad for that one Dodge truck that's been on TV recently? A big giant crew- cab pick up and the gist of the ad is the guys in the truck bragging about how big the truck is. That, and having the rear view camera on the back.

Seems to me that's way out of touch with what people want now. Most folks want cars with good gas mileage. But, no, Dodge is advertising how big their truck is.

Admittedly I relate size to mileage and that might not be a valid comparison. Still, I don't want a company so out of touch with the consumer as Chrysler is to get bailed out just so they can keep doing the same thing.

Besides, hasn't Chrysler already been bailed out once before?

December 6, 2008 8:31 AM  

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