Revealed - The Big Three Restructuring Plans to Congress

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  1. TriShield

    TriShield Super Moderator® Super Moderator

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    Chrysler's Plan for Short-Term and Long-Term Viability

    [​IMG]

    Robert Nardelli
    Chairman & CEO
    Chrysler LLC

    Chrysler Background

    Historically, Chrysler has been the one of most agile and innovative of the three Detroit automakers. This pioneering spirit has resulted in bold and successful business decisions including the acquisition of the Dodge and the Jeep brands, the invention of the legendary HEMI engine, and the creation of the Minivan. Today, Chrysler employs 55,000 workers worldwide, and sells approximately 2 million new vehicles each year, through a network of global dealers, including over 3,300 located in the United States. In 1979, Chrysler sought and received loan guarantees from the Federal Government to survive the economic recession and oil crisis of the late 1970s. These loans were paid back seven years early, and generated more than $300 million in equity returns to the American taxpayers. Even more significantly, the loan guarantees that helped return

    Chrysler to health resulted in the Company's ability to continue to pay employees and suppliers, fund retiree health and pension benefits and pay local, state and Federal taxes for the past 30 years.

    In 1998, Chrysler was acquired by Daimler and became a wholly-owned subsidiary of the large global automaker. As part of the integration, the Chrysler organization became functionally aligned with Daimler's German headquarters, and key functions were centralized in Germany. Chrysler's operating strategy and long-term product plans were optimized based on Daimler's overall global goals rather than Chrysler's stand-alone objectives.

    In August 2007, Daimler sold a controlling interest in Chrysler to affiliates of Cerberus Capital Management L.P., creating the first privately held American auto company in 50 years. The dedicated men and women of Chrysler view the challenge of returning Chrysler to profitability as an opportunity of a lifetime, and are determined to restore this 83-year old, iconic American brand to one of stature in the automotive industry.

    Mr. Nardelli was engaged by Chrysler immediately following the separation from Daimler in August 2007. New to the automotive industry, he recognized the need to question and challenge the status quo and sought significant opportunities to improve performance throughout the business. Under his leadership Chrysler launched an aggressive restructuring effort to address declining market conditions and to transform the business into an independent American auto company aligned with consumers' emerging needs.

    Chrysler made tough decisions to reduce operating costs and adjusted production schedules immediately. Management prioritized every product investment with a strong emphasis on improving energy security and environmental sustainability by introducing advanced powertrain technologies. At the same time four unprofitable vehicle models were discontinued and over $1 billion in unprofitable assets were identified for sale, with more than 70 percent of those assets disposed of to date.

    Since 2007, Chrysler has eliminated 1.2 million units of capacity, which represented over 30 percent of its previously installed capacity, and resulted in the elimination of 12 production shifts. Over the past 10 months alone Chrysler reduced its fixed costs by $2.4 billion. Unfortunately, by the end of 2008, Chrysler will have separated over 32,000 employees, including 5,000 white collar employees who left the company just this past Wednesday before Thanksgiving. Cost cutting has been substantial, swift and wide- ranging. Nothing has been viewed as "sacred."

    According to the Harbour Report, Chrysler has increased its manufacturing productivity by 32% over the past 7 years to equal Toyota, the most productive automaker in North America in terms of hours of assembly per vehicle. This combined with the favorable hourly labor rates in the recently negotiated transformational labor agreement with the UAW is an important step toward making Chrysler's cost structure competitive with transplant manufacturing by 2010.

    To further enhance its product portfolio, support growth and improve its cost structure, Chrysler continues to aggressively pursue strategic alliances and partnerships. Examples include our manufacturing agreement with Nissan whereby Chrysler will provide 100 percent of Nissan's full size truck manufacturing in North America beginning 2011. At the same time Chrysler will purchase a compact, fuel efficient car from Nissan for global markets beginning in 2010. Chrysler also became the sole supplier to VW for all its Minivan production in North America. Chrysler has also entered into alliances with suppliers to develop innovative powertrain technology to support improved fuel economy.

    Further partnership, restructuring and consolidation represent a significant upside for the U.S. auto manufacturers in a global economy. Chrysler welcomes the opportunity to have an open discussion with the new Administration and Congress on a collaborative approach to restructuring that will ensure any Government resources invested in the industry are used efficiently and will advance important national public policy objectives.

    1. Our Request

    Chrysler is requesting a $7 billion secured working capital bridge loan by December 31,
    2008. The existing senior secured lenders have advised Cerberus that they will work with the Company and the Government to provide mutually satisfactory collateral and priority.

    The Company makes this extraordinary request to meet a short-term deficiency in our liquidity and working capital created by a perfect storm comprised of

    (a) the collapse in demand for light duty vehicles (2007 SAAR 16.2 million compared to 10.8 million run rate for the month of November 2008), (b) the unprecedented financial crisis where even world-class companies like General Electric and Berkshire Hathaway must pay huge premiums for what was previously considered "AAA" credit, and many businesses have no access to credit at all (despite the best efforts of the Congress and Treasury to inject capital and create liquidity) and (c) the general global economic downturn.

    These events have jeopardized our ability to complete the dramatic restructuring plan that we began in 2007, before the commencement of the current economic crisis. Provision of the bridge loan will allow the Company to retain the confidence of its lenders, suppliers, dealers and employees and complete the on-going restructuring which we are confident will place the company on a path to long-term viability.

    This submission to Congress contains the facts, assumptions and projected financial results that support Chrysler's belief that it will be financially viable throughout the plan cycle. Management believes this report and analysis demonstrates that Chrysler can and will emerge from this restructuring process as a significant and healthy player in the U.S. automotive market for years to come, and will be well positioned to begin repayment of the Federal loans in 2012. Chrysler believes that participating in the restoration of the Company's long-term viability without a bankruptcy filing significantly improves the outcome for all constituents.

    2. Short –Term Cash Requirements

    For the first six months of 2008 Chrysler LLC operations generated adequate working capital to fund its ongoing operations. The Company ended the first half of the year with approximately $9.4 billion of cash. However, the significant downturn in the U.S. automotive sector in the second half of this year began to deplete the Company's otherwise ample cash reserves.

    Chrysler currently estimates that at year end it will have approximately $2.5 billion available cash on hand. In order to maintain appropriate working capital liquidity, and to bridge to the completion of the out-of-court restructuring and business plans described below, we are requesting the $7 billion secured bridge loan. During the period from January 1, 2009 through March 31, 2009, Chrysler anticipates making payments to the following parties:

    Summary of Qtr. 1, 2009
    Major Expenditures ($Billions)
    Parts suppliers $ 8.0
    Other vendors 1.2
    Wages 0.9
    Healthcare/legacy 0.5
    Capital expenditures 0.5
    Other expenditures 0.5
    Total expenditures $11.6

    Traditionally, the first three months of the year are the months with the lowest sales volumes, and hence, the lowest cash flows. Chrysler anticipates sales to be even lower than normal due to the economic downturn, the credit crisis and the inability of dealers and customers to secure wholesale and retail financing, which places greater pressure on operating cash flows.

    As a result of the above, without an immediate working capital bridge, Chrysler's liquidity could fall below the level necessary to sustain the company through the first quarter of 2009.

    3. Major Business Assumptions

    Congress has asked whether Chrysler, if in receipt of the requested Federal loan, can achieve viability on a stand alone basis as a profitable company. As noted above, the

    Company has already made substantial strides towards that goal and as indicated in this submission, will pursue significant additional restructuring actions and seek meaningful concessions from each of its major constituents. Chrysler believes these actions, taken together, clearly demonstrate long-term viability. Management fully understands that it has to continue to drive revenues through responsible product development that support the country's energy security and environmental sustainability goals.

    Chrysler remains focused upon developing partnerships, strategic alliances or a consolidation as a fundamental element of its restructuring to expand its product portfolio, generate incremental revenue, and create additional operational synergies related to manufacturing, purchasing and distribution. Management recognizes that in spite of the capacity reductions in the U.S. industry, there still exist opportunities for significant synergies through factory rationalization, sharing platforms and components (i.e., powertrain), and sharing new technical innovations (i.e., dual-mode hybrid drive systems) in a cost effective manner. Chrysler has conducted internal studies to identify the financial impact of an alliance or consolidation. Our estimates for annual synergies once fully implemented range between $3.5 and $9.0 billion.

    Chrysler anticipates that the Federal loan will function as additional adequate assurance to our suppliers, customers and employees that the Company will make it through this extraordinary time in our nation's economy, assuming, among other things, that

    Chrysler Financial has financing capacity at the wholesale and retail level sufficient to support Chrysler's production volumes. At Chrysler, 75 percent of our dealers rely on

    Chrysler Financial to finance their business, and 50 percent of all customers finance their vehicle purchases through Chrysler Financial. With credit markets frozen, our customers – average working Americans – do not have access to competitive financing to purchase or lease vehicles...our dealers do not have access to market competitive funding to place wholesale orders for new vehicles...resulting in the constriction of cash inflows to the Chrysler. Chrysler Financial is in need of immediately liquidity support.

    Chrysler's salaried workforce will fully comply with the restrictions established under section 111 of EESA. The Company has already undertaken and will continue to undertake significant cost reduction actions, such as: suspending the

    Company's match portion of the 401(k) plan; terminating the lease car program; and asking more productivity of each employee as a result of the approximately 12,000 in headcount reductions over the past 2 years. Additionally, Chrysler has substantially increased all salaried employees' contribution to health care costs, suspended tuition reimbursement program benefits, and eliminated retiree life insurance benefits.

    Mr. Nardelli receives an annual salary of $1 from Chrysler. In addition, Mr. Nardelli receives no health care, insurance or similar benefits from the Company. On average, Chrysler's executive salaries are in the 2nd quartile when compared to similarly situated companies, which in general, is below competitive market levels.

    Furthermore, the Company did not pay salaried merit increases or performance bonuses in 2008, and has not planned salaried merit increases or performance bonuses for 2009. Management has no options or restricted stock units. Top management will continue to share in the sacrifices of the salaried workforce and bear 100% of their healthcare premium costs.

    Product Development and Other Revenue Drivers

    DOE - 136 funding : Chrysler applied on day one for $8.5 billion in 136 funding, $6 billion (or 70 percent) of which is factored into the planning period from 2009 – 2012. These funds will be absolutely critical for Chrysler to achieve its product plan to support energy security and environmental sustainability. (reference chart #51)

    Providing Cars and Trucks People Want to Buy: Chrysler has made substantial progress in its product line to improve fuel efficiency, quality, technology and consumer appeal. During its first 60 days as an independent company, management approved more than 400 design changes representing an investment of half a billion dollars in improvements to product reliability, durability, fit and finish, and consumer appeal. Chrysler also offered its customers a lifetime powertrain warranty to build both confidence in its products and demonstrable quality. Due to a focused product quality improvement effort during the past year, Chrysler has seen its warranty claim rates drop by 29%. This improvement trend continues.

    Chrysler's viability plan includes 24 major product launches through 2012, including a wide portfolio of hybrid electric-drive vehicles within several categories: Neighborhood Electric Vehicles (NEV), City Electric Vehicles (CEV), Range-extended Electric Vehicles (ReEV), and full-function battery electric vehicles (BEV).

    Chrysler is the largest producer of all-electric vehicles in the U.S.. Through its GEM (Global Electric Motorcars) division, Chrysler has produced over 40,000 NEVs during the past 10 years with significant market growth forecasted over the next several years.

    The development of Chrysler's full function electric-drive vehicles is led by ENVI, the Company's in-house organization that was formed to focus on electric-drive production vehicles and related advance technologies. ENVI's initial focus is on establishing a market presence and technology leadership in electric-drive to further:

    • Reduce well-to-wheel energy consumption.

    • Reduce petroleum dependency.

    • Reduce tailpipe emissions and greenhouse gases.

    • Increase energy efficiency.

    • Exceed consumer's expectations in the areas of fuel economy, cost-of- ownership, performance, comfort, utility, and safety.

    Chrysler recently developed several advanced production-intent electric vehicles and publicly demonstrated our commitment to apply electric-drive technology to front-wheel- drive, rear-wheel-drive and body-on-frame four-wheel-drive platforms.

    Chrysler's product plan includes the introduction of the first full function electric-drive model in 2010, and expansion to additional models by 2013. Chrysler will have close to

    100 vehicles dedicated to testing and development within the Company, or assigned to Government and business evaluation fleets by the end of 2009. Chrysler's market penetration of electric-drive vehicles will further increase with over 500,000 produced by 2013.

    Our commitment to enhancing the nation's energy security and environmental sustainability also includes improving the performance of existing technology and support for flex fuel vehicles. For the 2009 model year, nineteen Dodge, Jeep and Chrysler models, or 73% of our product line, will offer improved fuel economy compared to previous models. The company has more than 1.7 million Flex Fuel Vehicles (FFV) on the road capable of running on 85 percent ethanol, and is on target to meet our commitment of 50% of our fleet being flex fuel capable by 2012.

    Chrysler's ongoing commitment to safety is evident in industry ratings. For 2009 model year over 88% of Chrysler vehicles achieved NHTSA's highest possible rating-5 stars for frontal crash tests. Eighty-six percent of Chrysler vehicles achieved the Government's highest rating for side impact protection.

    4. 2009 – 2012 Financial Forecast

    In order to complete a successful restructuring of Chrysler, the participation of many constituencies is essential.

    Based upon the financial analysis included herein, which assumes:

    (i) a reasonable level of support and concessions from the Company's constituencies
    (ii) $6 billion in funds from our DOE 136 loan request: and
    (iii) the $7 billion bridge loan: the long-term viability of Chrysler will be ensured.

    The detailed "bottom up" yearly forecasts for 2009-2012 were completed and critically challenged by all levels of senior management and the Company's independent outside advisors.

    There are a number of key market and financial assumptions which directly impact the Company's level of profitability. Summarized below are the major assumptions made for the years 2009 – 2012:

    Operating Assumption 2009 2010 2011 2012
    SAAR (millions of units, light duty only) 11.1 12.1 13.7 13.7
    Chrysler share (%) 10.4 10.7 10.7 10.7
    Chrysler unit sales(m) - U.S. 1.19 1.33 1.49 1.49
    Chrysler unit sales(m) - WW 1.72 1.86 2.15 2.15

    Based upon the above operating assumptions, Chrysler projects that the financial results will be as set forth below:

    ($ in Billions)
    2009 2010 2011 2012
    Operating profit 0.4 2.6 2.0 1.8
    Net cash change (2.0) 2.3 1.6 1.1
    Ending cash balance 7.5* 9.8 11.4 12.5**

    *includes $7 billion Government bridge loan **assumes $1 billion repayment of Government loan

    Chrysler believes that its operating assumptions are appropriate and realistic for 2009 and 2010, given the current state of the economy and domestic vehicle market. With respect to 2011 and 2012, the Company assumes a trend upward in unit sales volumes as the economy gradually improves. However, even if growth assumptions are reached, management believes the annual unit sales volumes will remain approximately 20% below recent historical levels of 17 million vehicles annually.

    The Company also prepared a sensitivity analysis assuming a 1 million unit higher and 1 million unit lower volume level for 2009 through 2012. The results are as follows:

    Sensitivity Higher Case (1 million unit annual increase)
    ($ in Billions)
    SAAR (millions of units, light duty only) 2009 2010 2011 2012
    12.1 13.1 14.7 14.7
    Operating income 0.8 3.0 2.4 2.2
    Net cash change (1.2) 3.1 2.4 1.1
    Ending cash balance 8.3 11.4 13.8 14.9
    Sensitivity Lower Case (1 million unit annual decrease)
    ($ in Billions)
    SAAR (millions of units, light duty only) 2009 2010 2011 2012
    10.1 11.1 12.7 12.7
    Operating income ($B) 0.0 2.2 1.6 1.4
    Net cash change (2.8) 1.5 0.8 1.1
    Ending cash balance 6.7 8.2 9.0 10.1

    5. Governmental requirements

    New Funding/Equity Grant

    The funding contemplated pursuant to the Government program will be on terms consistent with those provided by the Government under existing or contemplated loan programs and contain equity enhancement opportunities to ensure that taxpayers will benefit from appreciation of shareholder value. Chrysler has a high degree of flexibility and the support of Cerberus Capital Management, L.P., to offer the Government warrants, common or preferred equity or other equity based rights.

    Executive Compensation Matters

    Chrysler understands the importance of limitations on compensation for senior executives during the term of the loans and will fully comply with all conditions relating to executive compensation established under the Emergency Economic Stabilization Action of 2008 ("EESA") and such other conditions as the Government may require.

    Transparency/Accountability

    The terms of the financing will include provisions to ensure transparency and accountability. The Company will provide regular financial information and will fully cooperate with the Government's oversight personnel.

    Fuel Efficiency

    Chrysler has made substantial progress in its product line to improve fuel efficiency, quality, technology and consumer appeal. Chrysler accepts all currently applicable CAFE standards as a condition to the funding. (reference charts # 46 – 49)

    Early Acceleration

    Chrysler agrees that the loans will be immediately callable if the Company's restructuring plan submitted to the Government on March 31, 2009 is not acceptable, or other mutually agreed upon benchmarks are not met.

    6. Why the out-of-court scenario is a better option than a bankruptcy filing.

    1. A "prepackaged bankruptcy" is not plausible for Chrysler because:

    a. In a typical prepackaged bankruptcy, the company solicits and obtains the necessary affirmative vote in favor of a plan of reorganization of only one impaired class of creditors in advance of its bankruptcy filing and in accordance with applicable nonbankruptcy law. Once filed, the bankruptcy case can proceed expeditiously to confirmation because all other classes of creditors are either left unimpaired or have agreed to the treatment proposed in the plan.

    b. Any plan of reorganization proposed by Chrysler would necessarily impair a multitude of separate classes of holders of claims and interests, making the pre- petition solicitation and acceptance or rejection of the plan (and satisfying the Bankruptcy Code's myriad conditions to plan confirmation) impracticable and highly unlikely to succeed.

    2. A regular chapter 11 bankruptcy would likely not lead to a timely and successful reorganization of Chrysler because:

    a. Chapter 11 cases involving companies with the scale, scope and complexity similar to Chrysler (and even companies far smaller and simpler than Chrysler) usually take several years to resolve.

    b. Because the Bankruptcy Code embodies a strong Congressional preference for consensually negotiated plans of reorganization, it invariably takes a debtor-in- possession an extended period of time (often years) to negotiate the terms of a plan that are acceptable to the holders of most (if not all) classes of impaired claims and interests.

    c. Chrysler would not be permitted to reject or modify unilaterally its collective bargaining agreements in a chapter 11 case. The Bankruptcy Code contains express, specific and often time-consuming requirements that must be adhered to before a Bankruptcy Judge is even authorized to rule on a debtor's application to reject a collective bargaining agreement. Even then, there can be no assurance that a Bankruptcy Judge will approve the debtor's application.

    Accordingly, negotiations between a debtor-employer and a Union can (and often do) take years to resolve consensually.

    d. During these protracted negotiations, the employer-debtor is required to honor and pay its wage, benefit, jobs banks and other obligations under its existing collective bargaining agreements. The Bankruptcy Code simply does not provide the haven (as many believe) for employers-debtors to re-cut burdensome collective bargaining agreements in a cost efficient or timely manner. We reference the pending Delphi Automotive bankruptcy case to highlight the protracted time and significant expense that renegotiating a collective bargaining agreement imposes even during a chapter 11 process.

    3. Almost every chapter 11 debtor requires debtor-in-possession (DIP) financing to maintain ordinary course business operations while it reorganizes. Chrysler would be no exception.

    a. Chrysler believes that the amount of DIP financing that it would need to remain viable even during a relatively short bankruptcy (just one year) would approximate $12 to $15 billion. And, even that estimate presumes that financing remains available for the company's dealers and customers, which cannot be counted on given current market conditions.

    b. If financing for its dealers is unavailable from traditional sources during its Chapter 11 process (as Chrysler must assume would be the case), then Chrysler would need at least $5 billion of additional DIP financing just to support its dealers, pushing the expected total size of the year-one DIP financing need approximately $17 to $20 billion.

    c. The enormous size of the DIP financing facility that Chrysler would require is due to many factors, including: (i) the likelihood that many consumers will shun purchasing vehicles made by a manufacturer that is in chapter 11, thereby starving the company of revenue while it attempts to reorganize; (ii) the extraordinary imperiled financial state of the automotive suppliers will likely leave the Bankruptcy Court with no choice but to approve billions of dollars of payments to many of its suppliers on account of "pre-petition" claims just to keep the suppliers themselves afloat and the assembly lines moving at Chrysler; (iii) in addition, Chrysler expects that many suppliers will eliminate any trade credit during its chapter 11, thereby instantly consuming billions of additional dollars of working capital; and (iv) the incurrence by Chrysler of significant professional fees on account of the bankruptcy proceedings.

    d. Given the current adverse credit markets, we would note expect DIP financing of such size would be provided by Chrysler's existing lenders or by any other private source. Accordingly, the DIP financing would have to be provided by the U.S. Government.

    e. Absent the availability of such DIP financing, Chrysler would be left with no choice but to commence liquidation, the consequences of which could be dire for the overall U.S. economy including:

    i. All 29 of our manufacturing facilities and 22 parts depots would be permanently shut down immediately.

    ii. 53,000 out of the Company's 55,000 hourly and salaried employees would be terminated immediately representing over $7.2 billion in annual wages and healthcare benefits.

    iii. No payments would be made to over $7 billion in outstanding auto parts and service supplier invoices forcing thousands of our suppliers to go out of business.

    iv. Over 3,300 dealers would go out of business and over 140,000 employees at dealerships would lose their jobs.

    v. Over 31 million Chrysler, Jeep and Dodge owners would lose significant value in their vehicles. Additionally, these customers would not be covered by ongoing warranties and would find replacement parts and service difficult to obtain over time.

    4. Sales of new vehicles may plunge during a chapter 11 bankruptcy because:

    a. Potential consumers may shun Chrysler vehicles due to perceived uncertainty regarding its financial ability to honor its vehicle warranties and due to concerns that the local dealer will itself go out of business leaving the customer without convenient access to authorized service for its vehicle.

    b. Residual (resale) values of vehicles manufactured by Chrysler (both pre-petition and post-petition) would likely drop precipitously. This will further erode consumers' willingness to purchase a new vehicle from Chrysler. Also, lenders will likely reduce the amount of any financing that they might otherwise provide to potential Chrysler customers resulting in significantly higher down payments required to purchase new Chrysler vehicles. Many would-be Chrysler customers simply could not shoulder the financial burden of such significant down payment.

    c. New vehicle sales will further deteriorate if Chrysler's affiliated auto finance company is unable to provide retail financing to consumers during a chapter 11. Chrysler Financial provides consumer financing for 50% of Chrysler's U.S. retail sales.

    5. In summary, Management believes that the requested $7 billion working capital bridge loan from the government is the most cost-effective, expeditious and certain means of ensuring the long-term viability of Chrysler. This request is considerably less than the $17 to $20 billion (or more) of DIP financing that Management believes would be required to sustain Chrysler for just one year in a chapter 11 (and certainly billions more of financing would be required if the Chapter 11 goes beyond one year). Moreover, without access to adequate DIP financing, Management believes that Chrysler would be forced to liquidate, which would have severe consequences to the overall U.S. economy.

    7. Conclusion

    Chrysler's Plan for Short-Term and Long-Term Viability

    As demonstrated by the initiatives, financial projections and assumptions set forth above, Chrysler has already embarked upon, and is accelerating, a plan to overhaul its cost structure, streamline its operations, redirect its product mix to meet CAFE standards and "greener" product demands, rationalize its dealer network and partner with its supplier base and workforce to return the company to health.

    Industry volumes in this plan are conservative compared to historical results. Under our viability plan, after making a $1 billion payment toward the Government loan,

    the Company will have approximately $12.5 in billion in cash by 2012, providing a sound basis to continue repayment of Federal loans.

    To further enhance its product portfolio, support growth and improve its cost structure,

    Chrysler continues to aggressively pursue strategic alliances and partnerships. Further partnership, restructuring and consolidation is required for the industry to be viable in the long-run. Chrysler welcomes the opportunity to have an open discussion with the new Administration and Congress on a collaborative approach to restructuring that will ensure any Government resources invested in the industry are used efficiently and help achieve important national public policy objectives.

    Accomplishing these initiatives will take time and require the cooperation of all of Chrysler's constituencies. The changes proposed are sweeping, and Chrysler recognizes they will be painful for all of the players in the industry. In light of that,

    Chrysler believes that attempting to impose change by a bankruptcy filing will be less likely to garner long-term success than engaging each of the constituencies in negotiations to achieve consensus, while always bearing in mind the necessity of meeting the financial targets that will restore Chrysler to profitability. Accordingly, careful planning, information sharing and discussions with key parties are required components of Chrysler's ability to succeed in each of its initiatives.

    Today we are asking you to help us bridge a chasm created by an unprecedented financial meltdown, and in doing so, preserve a critical sector of the U.S. economy. According to a research memorandum published November 4, 2008, by the Center for Automotive Research, 4.5 million people depend on the U.S automotive industry. This memorandum estimates the impact of a domestic auto maker failure to the overall economy, and the result is devastating: 2.3 – 3 million in lost jobs, $275-$400 billion in lost wages, and $100-$150 billion in lost Government revenue.

    Without immediate bridge financing support, Chrysler's liquidity could fall below the level appropriate to ensure operations in the ordinary course. Failing to act now will hurt many American families and undermine our country's economic recovery, far outweighing the costs related to supporting an industry that touches every district in every state of the nation.

    The Company is also asking you to consider investing in a company and in people that will deliver real results for the American taxpayer. Chrysler plans to emerge from the current downturn as a lean, agile company, and well positioned to begin to repay the Government loans beginning in 2012.

    Management fully recognizes that this is a significant amount of money. However, the Company believes this request is the least costly alternative considering the options we face. It provides the least detrimental effect on human capital and the stimulus necessary to prevent further economic decline, if not outright economic depression.
     
  2. TriShield

    TriShield Super Moderator® Super Moderator

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    FORD MOTOR COMPANY SUBMITS BUSINESS PLAN TO CONGRESS; PROFIT TARGET, ELECTRIC CAR STRATEGY AMONG NEW DETAILS

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    * Based on current business planning assumptions, Ford expects both its overall and its North American Automotive business pre-tax results to be breakeven or profitable in 2011

    * Ford provided initial details of an accelerated vehicle electrification plan for a family of hybrids, plug-in hybrids and battery electric vehicles. The plan includes a Ford full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011

    * Ford's plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years

    * Ford said it will sell its corporate aircraft as part of its overall cash improvement plan

    DEARBORN, Mich., Dec. 2. 2008 – Ford Motor Company this morning submitted to Congress its comprehensive business plan, which details the company's plan to return to profitability and outlines a request for potential access to a temporary bridge loan in case the current economic crisis worsens or there is a bankruptcy of a major competitor.

    In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.

    Ford is asking for access to up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.

    Despite the serious global economic downturn, Ford said it does not anticipate a liquidity crisis in 2009 – barring a bankruptcy by one of its domestic competitors or a more severe economic downturn that would further cripple automotive sales and create additional cash challenges.

    "For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company," said Ford President and CEO Alan Mulally, who will testify before Congress this week.

    In the plan submitted to Congress, Ford reiterated that its One Ford transformation plan remains fully in place, anchored by four key priorities:

    * Aggressively restructure to operate profitably at the current demand and changing model mix;

    * Accelerate development of new products our customers want and value;

    * Finance our plan and improve our balance sheet;

    * Work together effectively as one team, leveraging our global assets.

    "Ford is committed to building a sustainable future for the benefit of all Americans," Mulally said. "We believe Ford is on the right path to achieve this vision.

    "We appreciate the valid concerns raised by Congress about the future viability of the industry," he added. "We hope that our submission today helps instill confidence in Ford's commitment to change, including our accountability and shared sacrifice during this difficult economic period."

    Ford's submission to Congress included new details about Ford's future plans and forecasts, including:

    * Based on current business planning assumptions – including U.S. industry sales for 2009, 2010 and 2011 of 12.5 million units, 14.5 million units and 15.5 million units, respectively – Ford expects both its overall and its North American automotive business pre-tax results to be breakeven or profitable in 2011, excluding any special items.

    * As part of a continuing focus on building the Ford brand, the company said it is exploring strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker. The strategic review is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to fund its plan. Since 2007, Ford has sold Aston Martin, Jaguar, Land Rover and the majority of its stake in Mazda.

    * Ford's plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.

    * Half of the Ford, Lincoln and Mercury light-duty nameplates by 2010 will qualify as "Advanced Technology Vehicles" under the U.S. Energy Independence and Security Act – increasing to 75 percent in 2011 and more than 90 percent in 2014. Ford said it has included these projects in its application to the Department of Energy for loans under that Act and hopes to receive $5 billion in direct loans by 2011 to support Ford's investment in advanced technologies and products.

    * From its largest light duty trucks to its smallest cars, Ford will improve the fuel economy of its fleet an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models – compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015.

    * Next month at the North American International Auto Show in Detroit, Ford will discuss in detail the company's accelerated vehicle electrification plan, which includes bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles. The work will include partnering with battery and powertrain systems suppliers to deliver a full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011. Ford said it will develop these vehicles in a manner that enables it to reduce costs and ultimately make BEVs more affordable for consumers.

    * The 2007 UAW-Ford negotiations resulted in significant progress being made in reducing the company's total labor cost. Given the present economic crisis and its impact upon the automotive industry, however, Ford is presently engaged in discussions with the UAW with the objective to further reduce its cost structure and eliminate the remaining labor cost gap that exists between Ford and the transplants.

    * As previously was announced, Ford plans two additional plant closures this quarter and four additional plant closures between 2009 and 2011. The company also has announced its intent to close or sell what will be four remaining ACH plants. The company said it will continue to aggressively match manufacturing capacity to real demand.

    * Ford will continue to work to reduce its dealer and supplier base to increase efficiency and promote mutual profitability. By year end, Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall – or 14 percent from year-end 2005 – including a reduction of 16 percent in large markets. In addition, Ford has been able to reduce the number of production suppliers eligible for major sourcing from 3,400 in 2004 to approximately 1,600 today, a reduction of 53 percent. Ford eventually plans to further reduce the number of suppliers eligible for major sourcing to 750.

    * Ford also confirmed today that it has decided to sell its five corporate aircraft. In addition, Ford CEO Mulally announced that, should Ford need to access funds from a potential government bridge loan, he would work for a salary of $1 a year – as a sign of his confidence in the company's transformation plan and future.

    Ford also reiterated that it is canceling all bonuses to be paid in 2009 for all management employees worldwide and foregoing bonuses for all employees in North America. The company also will not pay merit increases for North America salaried employees in 2009.

    Ford said it is moving fully ahead with plans it announced this summer to leverage the company's global product strengths and bring more smaller, fuel-efficient vehicles to the U.S. The plan includes delivering best-in-class or among the best fuel economy with every new vehicle introduced. Ford also is introducing industry-leading, fuel-saving EcoBoost engines and doubling the number and volume of hybrid vehicles.

    This product acceleration will result in a balanced product portfolio with a complete family of small, medium and large cars, utilities and trucks. Ford said it is increasing its investment in cars and crossovers from approximately 60 percent in 2007 to 80 percent of its total product investment in 2010.

    "Ford has a comprehensive transformation plan that will ensure our future viability – as evidenced by our profitability in the first quarter of 2008," Mulally said. "While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth."

    To read Ford's submission to the U.S. Congress and for more information about Ford's plan, please visit www.thefordstory.com.

    # # #

    Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, United States, manufactures or distributes automobiles in 200 markets across six continents. With about 224,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.

    Safe Harbor/Risk Factors

    Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

    * Continued decline in market share;

    * Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors;

    * A further increase in or acceleration of the market shift away from sales of trucks, SUVs, or other more profitable vehicles, particularly in the United States;

    * Further significant decline in industry sales, resulting from slowing economic growth, geo-political events, or other factors;

    * Lower-than-anticipated market acceptance of new or existing products;

    * Further increases in the price for, or reduced availability of, fuel;
    * Currency or commodity price fluctuations;

    * Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor;

    * Economic distress of suppliers of the type that has in the past and may in the future require us to provide financial support or take other measures to ensure supplies of components or materials;

    * Labor or other constraints on our ability to restructure our business;

    * Work stoppages at Ford or supplier facilities or other interruptions of supplies;

    * Single-source supply of components or materials;

    * Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;

    * Inability to implement the Retiree Health Care Settlement Agreement to fund and discharge UAW hourly retiree health care obligations;

    * Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends);

    * The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;

    * Increased safety, emissions, fuel economy, or other regulation resulting in higher costs, cash expenditures, and/or sales restrictions;

    * Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;

    * A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit us to purchase minimum or fixed quantities of certain parts or materials, or to pay a minimum amount to the seller ("take-or-pay" contracts);

    * Adverse effects on our results from a decrease in or cessation of government incentives;

    * Adverse effects on our operations resulting from certain geo-political or other events;

    * Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business, or refinance our debt;

    * Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including additional secured debt);

    * Failure of financial institutions to fulfill commitments under committed credit facilities;

    * Inability of Ford Credit to obtain an industrial bank charter or similar banking status;

    * Inability of Ford Credit to access debt, securitization or derivative markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades, market volatility, market disruption, or otherwise;

    * A prolonged disruption of the debt and securitization markets;

    * Higher-than-expected credit losses;

    * Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;

    * Changes in interest rates;

    * Collection and servicing problems related to finance receivables and net investment in operating leases;

    * Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles;

    * New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions;

    * Inability to implement our plans to further reduce structural costs and increase liquidity.

    We cannot be certain that any expectation, forecast or assumption made by management in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

    For additional discussion of these risks, see "Item 1A. Risk Factors" in our 2007 Form 10-K Report and our third quarter 2008 Form 10-Q Report.
     
  3. TriShield

    TriShield Super Moderator® Super Moderator

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    GM Submits Plan For Long-Term Viability To The U.S. Congress

    [​IMG]

    • Reaffirms GM's commitment to energy-saving vehicles and technologies
    • Outlines the need for Federal bridge loans and line of credit
    • Requests Federal board to oversee loans, assist with restructuring
    • Aggressive plan details GM actions to support long-term success
    • WASHINGTON – General Motors Corp. today submitted a plan to use Federal bridge loans to create a leaner, more competitive company, one that is profitable and self-sustaining for the long term.
    The plan, submitted in response to Congressional hearings in November, includes a detailed blueprint for a successful, sustainable General Motors. Building on a product renaissance and comprehensive restructuring that has been under way for several years, the plan calls for:

    • Increased production of fuel-efficient vehicles and energy-saving technologies;
    • Rationalization of brands, models and retail outlets;
    • Reduced wage and benefit costs, including further reductions in executive compensation;
    • Significant capital structure restructuring;
    • Further consolidation in manufacturing operations.
    • GM is requesting term loans of up to $12 billion to provide adequate liquidity levels through December 31, 2009. GM anticipates an initial draw of $4 billion in December 2008. In addition to the bridge loans, the company is requesting a $6 billion line of credit to provide liquidity should a severe market downturn persist. GM's intent is to begin to repay the loans as soon as 2011.
    Any draws would be conditioned on achieving specific restructuring requirements in the plan. To help expedite these actions and protect the taxpayers, GM is also seeking the creation of a Federal oversight board to oversee the loans and restructuring plan.

    GM is requesting the bridge loans and credit line because of a sharp industry-wide decline in vehicle sales. This decline, due in large part to tight credit and record-low consumer confidence, has led to a corresponding drop in dealer orders that is adversely impacting GM's first-quarter production schedules, revenue forecasts, and liquidity outlook. Federal assistance would enable GM to weather a credit crisis that has driven U.S. industry sales to their lowest per-capita level in half a century, and help the company emerge fully competitive with all manufacturers operating in the U.S.

    The complete GM plan is available online: General Motors Corporation Restructuring Plan for Long-Term Viability. Following are highlights from the plan.

    Product Portfolio and Fuel Efficiency – GM has made significant progress in revamping its product lineup, with new GM cars like the Chevy Malibu, Cadillac CTS, Saturn Aura and Opel/Vauxhall Insignia earning car of the year awards.While remaining a full-line manufacturer, GM will substantially change its product mix over the next four years, and launch predominately high mileage, energy-efficient cars and crossovers.

    In addition, the Chevy Volt, which can travel up to 40 miles on electricity alone, is scheduled for production in 2010, and GM is planning other vehicles using Volt's extended-range electric drivetrain. By 2012, more than half of GM vehicles will be flex-fuel capable, and the company will offer 15 hybrid models. GM will continue development of hydrogen fuel cell technology, which, when commercially deployed, will reduce automotive emissions to just water vapor.

    During the 2009-12 plan window, GM will invest approximately $2.9 billion in alternative fuels and advanced propulsion technologies, which offer fuel economy improvements ranging from 12 percent to 120 percent, compared with conventional gas engines. As a result, we expect GM to become a significant creator of green jobs in the United States, as well helping suppliers and dealers transform the U.S. economy.

    Market and Retail Operations – In the U.S., GM will focus its product development and marketing efforts on four core brands – Chevrolet, Cadillac, Buick and GMC. Pontiac will be a specialty brand with reduced product offerings within the Buick-Pontiac-GMC channel. Hummer has recently been put under strategic review, which includes the possible sale of the brand, and GM will immediately undertake a global strategic review of the Saab brand. As part of the plan, the company also will accelerate discussions with the Saturn retailers, consistent with their unique relationship, to explore alternatives for the Saturn brand.

    Manufacturing and Structural Costs – GM will accelerate its current efforts to reduce manufacturing and structural costs, building on significant progress made over the past several years. GM currently has the most productive assembly plants in 11 of the 20 product segments measured by the Harbour Report, and it is a global leader in workplace safety. With the recently negotiated wage rates, turnover expected in our workforce, planned assembly plant consolidations, further productivity improvements in the plan, and additional changes to be negotiated, GM's wages and benefits for both current workers and new hires will be fully competitive with Toyota by 2012.

    Balance Sheet Restructuring – Under the plan, GM would significantly reduce the debt currently carried on its balance sheet. GM plans to engage current lenders, bond holders and its unions to negotiate the needed changes. GM's plan would preserve the status of existing trade creditors and honor all outstanding warranty obligations to both dealers and consumers, in the U.S. and globally.

    Compensation and Dividends – The plan calls for shared sacrifice, including further reduction in the number of executives and total compensation paid to senior leadership. For example, the chairman and CEO will reduce his salary to $1 per year. The plan also requires further changes in existing labor agreements, including job security provisions, paid time-off, and post-retirement health-care obligations. The common stock dividend will remain suspended during the life of the loans.

    Temporary Federal Bridge Loans – GM is seeking a term bridge loan facility from the Federal government of $12 billion to cover operating requirements under a baseline forecast of 12 million U.S. industry vehicle sales for 2009. In addition, GM is seeking a revolving credit facility of $6 billion that could be drawn should severe industry conditions continue, resulting in sales of 10.5 million total vehicles in 2009. This bridge loan is expected to be fully repaid by 2012 under the baseline industry assumptions. Also, warrants issued as part of the loans would allow taxpayers to benefit from growth in the company's share price that might result from successful completion of the plan.

    Once GM has completed the restructuring actions laid out in the plan, the company will be able to operate profitably at industry volumes between 12.5 and 13 million vehicles. This is substantially below the 17 million industry levels averaged over the last nine years, so it is considered to be a reasonably conservative assumption for gauging liquidity needs.

    Federal Oversight Board – Given the importance and urgency of this restructuring for GM, other domestic manufacturers and the U.S. economy as a whole, the company supports the formation of a Federal oversight board. The board would help facilitate restructuring negotiations with a range of stakeholders.

    GM's Commitment to Success

    General Motors and its management are committed to the success of the plan summarized in the Congressional submission. The company's responsibility to its customers, shareholders, employees, retirees, dealers and suppliers is well recognized, as is its century-long commitment to our nation.

    GM has never failed to meet a Congressional mandate in the important areas of fuel efficiency and vehicle emissions. We are among the leaders today in fuel efficiency, and set the industry standard for green manufacturing methods. We are committed to meeting the new fuel economy requirements of the 2007 Energy Independence and Security Act. The company's role in creating green technology and high-paying jobs of the future will increase substantially as a result of implementing the plan.

    GM is proud of its century of contributions to the growth of our nation, and the company looks forward to making an equally meaningful contribution over the next century.
     
  4. art_VW_shark

    art_VW_shark OT Supporter

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    Chrysler deserves a grand total of $0.00.
    Why?
    If the brand hasn't gotten its act together in two decades, what makes you think it can even with immense amounts of pressure on it.
     
  5. Smelly-Kitten

    Smelly-Kitten Dept. of Redundancy Department *Side Pipes

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    Agreed. Chrsyler would have been better off dieing long before then worked themselves in the hole. No one ever had high prospects for anything they made.
     
  6. TriShield

    TriShield Super Moderator® Super Moderator

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    Chrysler was a healthy and vibrant company up until a couple of years ago.
     
  7. art_VW_shark

    art_VW_shark OT Supporter

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    You sure about that?
     
  8. art_VW_shark

    art_VW_shark OT Supporter

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    That said, despite what I said about Chrysler, GM deserves a loan, to be payed back in no less than 3 years, and Ford may, as well, should analysts deem them possibly competitive.
     
  9. TriShield

    TriShield Super Moderator® Super Moderator

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    Good enough that Mercedes paid billions for them and they were the only profitable side of the company a few years ago only to be run straight into the ground by German and German-appointed management afterwards.
     
  10. TriShield

    TriShield Super Moderator® Super Moderator

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    Somehow you must have missed all the caveats in Ford's scheme complete with little stars next to them. GM still has too many brands, too many models, too many plants and too many people and not enough sales to support it all. So does Ford and Chrysler in fact.

    Congress is going to be "loaning" (hearty lol) money on a real leap of faith that the stars align here and we suddenly have a boom this time next year.
     
  11. Cock Diesel

    Cock Diesel New Member

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    At least it was prior to Daimler-Benz's "merger of equals".
     
  12. Run N. Gun

    Run N. Gun Active Member

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    You're spot on, TS. Completely true and significantly more profitable/efficient than their German purchaser. :bigthumb:

    Honestly, I've never been a fan of Chrysler vehicles - ever. I've said it before, I'd be fine with them just going away because I don't really care for them. BUT - competition benefits us buyers, it's good for US auto-workers and the US/Global economy. I still don't like the cars, though.
     
  13. deusexaethera

    deusexaethera OT Supporter

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    It's not competition if the products aren't competitive. It won't make two shits' worth of difference to most car buyers if GM and Chrysler go away. (Ford, I think, will be just fine in the long run, because they're actually doing well overseas.)

    If we want to stimulate the economy, let's stimulate the economy by giving billions of dollars to companies that don't have a history of pissing away billions of dollars, preferably companies that also have an innovative and useful idea once in a while. As for the workforce, I think that thousands of people who operate spot-welders and impact wrenches for a living could just as easily use those skills building things Americans need -- like bridges and windmills -- as they could building things Americans don't need -- like droves of cars that are unremarkable and trucks that are too big/heavy for most people.
     
  14. Run N. Gun

    Run N. Gun Active Member

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    I hear where you're coming from Deus and I partly agree. My point with the competition is that it keeps prices lower for you and me, regardless of the brand of crappy cars. If our choice is Ford and foreign competitors, the "buy american" purists will still pay the Ford premium. That's where I was coming from. I completely agree on utilizing those skills on US infrastructure projects.

    I had a revelation tonight ... Seriously, why not have the oil companies bailout the Auto industry with their 300% quartely windfall from the last year? If the oil prices had not been jacked out of proportion, we probably wouldn't be in the slump we're in. The oil industry should have a financially vested interest in the success of the american produced automobile for obvious reasons.
     
  15. SilverTurtle

    SilverTurtle New Member

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    you really dont know much about how the economy is tied to the auto industry, do you? you seriously think that your little vision of the world IS the big picture, dont you? trust me when I say that letting any one, or all, of the big 3 fail would affect you in ways that you dont want to be affected.


    I have actually stated the oil comanies bailing out the auto industry before... I would love to see us tax Exxon/Mobil and the other foreign oil importing companies to pay for these loans to the big 3... figure there was $300+billion in profit last year due to them jacking the prices sky high, so lets take 10% of that and lend it to the US auto manufacturers who are the bread and butter of these oil companies... they'd get a 10% stake in these auto companies and this would help incite the oil companies to invest in green technologies to aide the US auto industry... in the long run, the oil companies would know where the auto industry is going and could strategically invest in that area to avoid their own collapse as cars and trucks become more fuel efficient and rely less and less on foreign oil... it truly could be a win/win situation... but that's not going to happen... Humble Oil Company didn't become the largest oil company in the world by doing things logically... they did it by breaking the rules, asking the government to give them concessions and then screwing anyone in their way of making big profits.
     
  16. Mitchj

    Mitchj OT Supporter

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    wait, so GM isn't cutting its endless dealer web network and useless brands with product overlap?
     
  17. vudoodoodoo

    vudoodoodoo New Member

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    Money down the drain.
     
  18. art_VW_shark

    art_VW_shark OT Supporter

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    just because a company gobbles up a little guy (for the purposes of this comparison) does not say that much about the latter. Daimler saw an opportunity to make some money. That didn't pan out, and the rest is, hopefully as the company will be, history
     
  19. Priest Tango

    Priest Tango Custom User Tits

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    i just hope saab volvo and saturn dont get bastardized in the selling process :hs: saturn seemed to just start heading in the right direction....who woulda thought making cars with sheet metal :eek3:
     
  20. Priest Tango

    Priest Tango Custom User Tits

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    **millions of people

    but anyways, GM is doing just fine in china :dunno:
     
  21. deusexaethera

    deusexaethera OT Supporter

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    You pretend to criticize my post, but didn't say a goddamned thing in yours. Use concrete terms next time.

    Guess what? Parts suppliers can supply parts to make windmills just like they can supply parts to make cars. Do you know what's inside a wind turbine? A huge gearbox and a huge alternator. I'm sure they can figure out how to make it work. Either that or they can sell parts to Toyota.

    As for service providers, they can provide services to companies that are growing instead of companies that are limping along on federal bailout money. Beyond that, there is zero distinction between the services they provide to one company vs. another.

    For god's sake man, use your brain instead of repeating the shit you heard on CNN.
     
  22. deusexaethera

    deusexaethera OT Supporter

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    Fine, so millions of people need to get other jobs. It's not like there's nothing else in the USA that needs to be worked on -- there are not just companies, but whole industries that can't really get going because no funding exists and they can't find employees. We have a capitalist economy that rewards innovators with venture capital and employees who want to get out of the ruts they used to be in, but because these are car companies, we should totally abandon our principles and help them continue to fail at doing the same thing they've repeatedly failed at doing over the past 50 years. Yeah, that's a great way to maintain our position as a global economic leader.
     
  23. deusexaethera

    deusexaethera OT Supporter

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    No, if they did that, those people might have to find other jobs where they do useful things, instead of sucking on GM's ample (and soon-to-be federally-funded) teats.
     
  24. art_VW_shark

    art_VW_shark OT Supporter

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    bastardized? Saab is a dead brand, man. dead. Volvo has some kick left in it, but saab is pretty sure rebranded GMs, in spirit if not truly for all of their models
     
  25. SilverTurtle

    SilverTurtle New Member

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    picard.jpg
     

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